Increasing the effectiveness of global sourcing : The key relationship between strategy and structure

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Global strategy and structure influence a firm’s global sourcing (GS) activities. International integration, internationalization, and external integration are proposed as the three dimensions of GS strategy. Design of GS structure incorporates organizational complexity, specialization and allocation of decision-making power. Another key aspect is control and coordination, which relies heavily on strong information and communications technology (ICT) capabilities. Relationships between the various elements shape strategy and structure and can impact GS performance. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.