Building Global Supplier Networks: A Supplier Portfolio Entry Model

Document Type


Department or Administrative Unit

Finance and Supply Chain Management

Publication Date



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.


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Journal of Enterprise lnformation Management


Copyright © 2007 Emerald