Global sourcing in New Zealand a cross method analysis

Abstract

The aim of this dissertation is to investigate global sourcing as a purchasing strategy in the New Zealand environment. Literature relating to purchasing and its role within the philosophy of supply chain management (SCM) is surmised in order to provide a body of knowledge with which to compare the empirical research. The research methodology instigates a cross method approach when investigating global sourcing. Case studies are used as a form of qualitative research because of their inductive, exploratory style. They were deemed to be more appropriate than hypothesis testing research, as they provide a more effective aid to this dissertation's pursuit of building a hypothesis. A descriptive survey was also administered to a select population of purchasing managers throughout New Zealand. These surveys were used to provide the analytical skeleton of an informative methodology. The research compared and contrasted pertinent literature with the results of the empirical research to reach the following three conclusions: 1. A highly strategic purchasing function will inherently adopt global sourcing principles more swiftly, and without as much resistance as would be the case with a traditional/clerical based purchasing function. 2. The nature of the industry in which an organisation operates is an indicator of the need for global sourcing as a purchasing strategy. 3. This research ratified the trend seen in the literature of a move away from price representing the core driver of a global sourcing strategy. The empirical research identified availability and technology of materials as key motivating factors for New Zealand organisations to source abroad.