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Global sourcing decision-making processes: politics, intuition and procedural rationality
journal contribution
posted on 2023-06-08, 21:06 authored by Alina Stancyk, Kai Foerstl, Christian Busse, Constantin BlomeGlobal sourcing (GS) is a firmly established phenomenon in modern business practice that requires specific expertise from different organizational functions, such as purchasing, production, logistics, and research and development to analyze and select sourcing alternatives effectively. In this context, global sourcing decision-making (GSDM) processes pose major challenges because two dimensions of functional politics, namely goal misalignment and power imbalance across functions, appear to influence procedural rationality in a manner not understood to date. Likewise, intuition also seems to play a role for the procedural rationality of GSDM processes. To elucidate the conditions under which procedural rationality is hampered or enhanced by politics and intuition, we studied five cross-functional GSDM processes, in front of extant strategic decision-making literature. We derive formal propositions on how functional politics and intuition influence the procedural rationality and present contingencies for the divergent role of intuition as well as functional politics in GDSM processes. Our research contributes to existing GS literature by providing a theoretical model of important microfoundations of how GSDM processes evolve. The findings also guide managers on how to structure GSDM processes such that GS projects can be conducted in a more rational fashion.
History
Publication status
- Published
Journal
Journal of Business LogisticsISSN
2158-1592Publisher
WileyExternal DOI
Issue
2Volume
36Page range
160-181Department affiliated with
- Business and Management Publications
Full text available
- No
Peer reviewed?
- Yes
Legacy Posted Date
2015-06-12Usage metrics
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