Do the sourcing strategies of automotive firms really support corporate objectives?
by Christer Karlsson, Mikael Weimarck
International Journal of Automotive Technology and Management (IJATM), Vol. 1, No. 1, 2001

Abstract: This article explores to what extent different sourcing strategies can be expected to support corporate objectives, by applying a model for evaluation of strategic consistency. Strategic consistency is investigated through collective beliefs in panels of individuals from the automotive industry as well as academic strategy scholars in how different strategies contribute to corporate objectives. Four ''generic paths'' for the strategic issue of sourcing are defined as component supply strategy, supplier collaboration strategy, supplier network strategy, and system and mega suppliers strategy. Collective beliefs are found to be quite different between the two groups of judges. This raises questions about what we know about how strategies support objectives and if there in reality are clear causal relations. There are also questions about what really develops the automotive company. The leading strategy scholars in the world are not as clear as the practitioners that maximum out-sourcing is the best strategy. The growing focus on core competence may swing the outsourcing pendulum.

Online publication date: Wed, 02-Jul-2003

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