Low-cost country sourcing competence: a conceptual framework and empirical analysis

Abstract

The world has observed an increase in international trade and a substantial strengthening of emerging markets over the last decades. This trend stresses the importance of global sourcing research in general, and low-cost country sourcing (LCCS) research in particular. The objective of this paper is to introduce and test the construct of LCCS competence of employees from purchasing and other participating functions. The conceptual framework is derived through expert interviews, workshops, and an extensive literature review. The LCCS competence construct is tested using data from more than 300 managers and employees from various functions involved in LCCS projects. The results support the construct's validity as well as its association with LCCS performance. The study implications and future research paths are discussed.