Global sourcing decision-making processes: Politics, intuition, and procedural rationality

Stanczyk, A. and Foerstl, K. and Busse, C. and Blome, C. (2015) Global sourcing decision-making processes: Politics, intuition, and procedural rationality. Journal of Business Logistics, 36 (2). pp. 160-181.

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Abstract

Global sourcing (GS) is a firmly established phenomenon in modern business practice that requires specific expertise from different organizational functions, such as purchasing, production, logistics, and research and development to analyze and select sourcing alternatives effectively. In this context, global sourcing decision-making (GSDM) processes pose major challenges because two dimensions of functional politics, namely goal misalignment and power imbalance across functions, appear to influence procedural rationality in a manner not understood to date. Likewise, intuition also seems to play a role for the procedural rationality of GSDM processes. To elucidate the conditions under which procedural rationality is hampered or enhanced by politics and intuition, we studied five cross-functional GSDM processes, in front of extant strategic decision-making literature. We derive formal propositions on how functional politics and intuition influence the procedural rationality and present contingencies for the divergent role of intuition as well as functional politics in GDSM processes. Our research contributes to existing GS literature by providing a theoretical model of important microfoundations of how GSDM processes evolve. The findings also guide managers on how to structure GSDM processes such that GS projects can be conducted in a more rational fashion.

Item Type:
Journal Article
Journal or Publication Title:
Journal of Business Logistics
Subjects:
ID Code:
176019
Deposited By:
Deposited On:
03 Oct 2022 10:45
Refereed?:
Yes
Published?:
Published
Last Modified:
22 Nov 2022 11:49