Domestic Sourcing by Foreign-Owned Subsidiaries

David Williams, Frank McDonald, Heinz J Tüselmann and Colin Turner
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David Williams: University of Liverpool Management School, University of Liverpool, Chatham Street, Liverpool L69 7ZH, England
Frank McDonald: Bradford School of Management, University of Bradford, Bradford BD9 4JL, England
Heinz J Tüselmann: International Business Unit, Manchester Metropolitan University Business School, Aytoun Street, Manchester M1 3GH, England
Colin Turner: Hull University Business School, University of Hull, Hull HU6 7RX, England

Environment and Planning C, 2008, vol. 26, issue 1, 260-276

Abstract: This paper investigates the development of domestic sourcing by foreign-owned subsidiaries (FOS) in the UK. The regional development and international-business literatures are used to develop a conceptual framework on the links between autonomy, the use of networks, and domestic sourcing. Data from a survey of German, French, and US FOS in the UK is used to test the model. The results indicate that increased use of networks and increased operational decision-making autonomy are associated with increased domestic sourcing, but that only a minority of FOS are increasing their use of domestic sourcing. The growing importance of global sourcing is considered as a possible explanation for the low proportion of FOS that are increasing their use of domestic sourcing. The implications for regional-development policy of the findings are also assessed.

Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:sae:envirc:v:26:y:2008:i:1:p:260-276

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