Global Sourcing and Purchasing Strategy as Decision- Making Process

As reported extensively in academic literature, companies have been forced by increasing global competition to devise and pursue international purchasing strategies that hinge on reducing prices and optimising quality, fulfilment, production cycle times, responsiveness and financial conditions. As a result, purchase management has turned to improve internationalisation to support companies' globalisation processes. Specifically, research studies focusing on Multinational Companies' (MNC) corporate purchasing strategy influence on affiliates' global supply strategy (GSS) development reveal a strong link between two key dimensions: a) supply source –i.e., the level of supply globalisation as related to MNC's worldwide operating needs-and b) purchase location –i.e., the level of centralisation in relevant purchasing decisions. In this research, a sample of seven Italian MNCs operating in Latin America's MERCOSUR (Southern Common Market) region have been studied in an attempt to analyse their purchasing strategy definition and development processes. The focus of this study has zeroed in on the interactions between both dimensions and the variables used for definitions in each of them, reviewing also their impact on companies' decision-making processes.