Import Sourcing Dynamics: An Integrative Perspective
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*Paul M. Swamidassis Associate Professorof Managementand the Associate Directorof the ThomasWalterCenterfor TechnologyManagement.He received his doctoratein operationsmanagementfromthe Universityof Washington,Seattle. This is his third publication in the Journal of International Business Studies. He
has publishedin severalresearchjournalsincludingManagementScience andthe Academy of Management Review. His research and teaching interests include
manufacturingstrategyand manufacturingtechnology.His surveyof manufacturing technology adoptionpracticesin the U.S. was publishedas the monograph TechnologyontheFactoryFloor(1992).In 1993,Dr.Swamidassreceiveda National Science Foundation(NSF) grantto updatehis studyof manufacturingtechnology adoptionin the U.S. The author wishes to acknowledge the helpful comments of Professors Allen Bluedorn, Richard Moxon and reviewers. Received: December 1991; Revised: September 1992, April & May 1993; Accepted: May 1993. 671
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JOURNAL OF INTERNATIONALBUSINESS STUDIES, FOURTH QUARTER 1993
the years following each of these publications, there never was any noticeable follow-up research on the topic. To explain import sourcing, there are many overlapping paradigms grounded in the literature pertaining to international trade, foreign direct investment [Calvet 1981], offshore production, product life cycle [Vernon 1966; Stopford and Wells 1972], and manufacturingstrategy. However, the hurdles to continued research on the topic stem from its multidisciplinary nature and the lack of a commonly accepted research paradigm. In order to stimulate renewed, vigorous research interest in the area, we need a new paradigm that integrates the diverse explanations thatspan many disciplines. A conceptual model of import sourcing depicting it as a dynamic relationship among international plants, products, markets, parts and components, and logistics proposed by Fayerweather [1969] offered a good beginning to the formal study of import sourcing. Many distinct trends in import sourcing since then have altered its scope and character. The intensely competitive environment of the eighties has caused many researchers to take a fresh look at this topic from a strategic perspective [Kogut 1985; Kotabe and Murray 1990; Kotabe and Omura 1989; Porter 1986; Starr 1984]. But, this collection of diverse, evolving literature lacks an integrative element. Import sourcing is broadly defined as the acquisition of raw materials, components and subassemblies from international sources for use in fabrication, assembly or for resale regardless of whether the import source is internal or external to the company [Kotabe and Omura 1989; Kotabe and Murray 1990]. The classical perspective on import sourcing views it as purely cost and exchange rate determined and assumes that imported raw materials and components contribute to essentially the cost minimization goals of
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