Integrating global and local procurement for superior supplier working relations

Globalization is forcing global organizations to focus on processes that will enable them to more effectively and efficiently integrate and coordinate their activities throughout their worldwide organization. As such, global sourcing is becoming a standard practice in many global organizations. Using a dataset of 1455 observations from the suppliers of a North American-based global manufacturer of high technology products, this research evaluates how a global company can utilize a globally integrated procurement organization to achieve global and local sourcing responsiveness and superior supplier working relations. The study found that if a global procurement organization aspires to achieve exceptional supplier working relations, it should be highly integrated across its geographic regions with knowledgeable global and local procurement personnel who effectively communicate with the firm's suppliers, while working closely together in a coordinated manner to achieve a globally responsive supply chain.

► We identify the antecedents of sourcing responsiveness in a global company.
► We identify the effect of sourcing responsiveness on supplier working relations.
► The empirical model uses global survey data that has 1455 observations.
► We account for global and local knowledge and communication.
► We consider the differences between global and local suppliers.