An Analysis of the Adoption of Global Sourcing by Emerging Companies

Companies are moving abroad to look for advantages in alternative sources of supply. Primarily associated with the lack of local suppliers or lower acquisition costs these reactions have driven business to a more proactive perspective by the adoption of Strategic Global Sourcing (GS). Companies from emerging countries are developing their own GS in the same manner as companies from developed countries. Most GS literature considers emerging companies the emerging companies to be the suppliers not the buyers. These “late movers” have more strategic motivation as well as goals to internationalize their activities. In this book we investigated emerging Brazilian companies in the electrical and electronic industries from the state of Rio Grande do Sul as buyers in the global market. A set of differences between these companies and the adoption of GS from developed countries' companies were identified. It was possible to confirm that the adoption of GS is a competitive advantage for these companies.