Intuitive global sourcing – a study of supplier selection decisions by apparel SMEs

Chris Ellegaard, Ulla Normann, Nina Lidegaard

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Purpose
The purpose of this paper is to create knowledge on the intuitive global sourcing process applied by small and medium-sized enterprise (SME) managers.

Design/methodology/approach
This study reports on qualitative inquiries with experienced sourcing managers from 10 SMEs in the textile industry. The study follows a three-step semi-structured interviewing process, allowing us to gradually unveil the detailed nature of the intuitive supplier selection process.

Findings
Nine of the 10 SMEs rely on a highly intuitive supplier selections process, where one supplier at a time is gradually taken into the exchange while testing the supplier’s behavior. The process consists of an early heuristics sub-process, which gradually switches over to a more advanced intuiting behavioral pattern-matching process.

Practical implications
Most OM/SCM research has treated global sourcing and supplier selection as a highly rational, analytical and deliberate optimization problem. This study uncovers a completely different, and frequently successful, intuitive process, which could inspire managers in companies of all sizes, faced with high uncertainty about global supplier selection decisions.

Originality/value
Intuition has recently been adopted in the global sourcing literature. However, this study is the first to offer detailed insights into a predominantly intuitive global sourcing process, specifically as it is managed by SMEs.

Translated title of the contributionIntuitiv global sourcing - et studie af beslutninger omkring leverandørvalg i SMVer i beklædningsbranchen
Original languageEnglish
JournalInternational Journal of Operations and Production Management
Volume42
Issue number2
Pages (from-to)151-181
Number of pages30
ISSN0144-3577
DOIs
Publication statusPublished - 4 Jan 2022

Keywords

  • business community, trade and economy

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