Issues and Challenges with Global Outsourcing of Manufacturing

Graff, Jens
January 2013
International Journal of Performance Measurement;Jan2013, Vol. 3 Issue 1, p1
Academic Journal
This paper contributed to the understanding of sourcing problems -- especially when sourcing from a different culture. A case study was implemented and the decision maker of a Danish company's sourcing decision in Vietnam was interviewed. In addition, the company's homepage, as well as different company materials and press articles were also used. The case revealed several problems with the company's decision to source from Vietnam. Some of the problems could be characterized as cross-cultural problems, some as managerial problems, and some as external factors. This study was based on a single case; therefore, it was not possible to make generalizations. The problems found in this case could give other decision makers (policy makers or business leaders) hints about the problems that can arise from sourcing in a different culture. The case was about a company producing under quotas at home. The company represented an example of choosing the most obvious solution for growth in a situation of restricted production possibilities at home and the consequences of inadequate feasibility studies in the source country.


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