Building Global Supplier Networks: A Supplier Portfolio Entry Model
Department or Administrative Unit
Finance and Supply Chain Management
Purpose The purpose of this article is to address critical issues on how a global enterprise establishes an effective supply network. The example of a Japanese firm operating in China illustrates a supplier portfolio entry model that has not previously been examined in the literature.
Design/methodology/approach - This paper proposes a research model based on theories of resource dependency and supplier networks. The model shows how profit optimization is achieved through a series of decisions that build an effective supplier network.
Findings - The concept of portfolio management is useful in optimizing profits through a supplier network.
Research limitations/implications - This research is based on a single case in one country, so it has limited validity. Further studies are also needed to examine more complex cases in multiple countries.
Practical implications - The leading enterprise (e.g. original equipment manufacturer) may effectively build its global network by strategically applying the key features of the supplier portfolio model.
Originality/value - Practitioners and academics may gain new insights into how a global enterprise was able to build an effective supplier network in China.
Liao, K. & Hong, P. (2007). Building global supplier networks: A supplier portfolio entry model. Journal of Enterprise Information Management, 20(5), 511-526. DOI: 10.1108/17410390710823671
Journal of Enterprise lnformation Management
Copyright © 2007 Emerald