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Domestic sourcing by foreign-owned subsidiaries
McDonald, Frank Williams, D. Tüselmann, H-J. Turner, C.
McDonald, Frank
Williams, D.
Tüselmann, H-J.
Turner, C.
Publication Date
2008
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© 2008 Pion. [Williams, D., McDonald, F., Tüselmann, H. J. and Turner, C., 2008]. The definitive, peer-reviewed and edited version of this article is published in Environment and Planning C: Government and Policy, Vol. 26 No. 1, pp. 260¿ 276.
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Abstract
This paper investigates the development of domestic sourcing by foreign-owned subsidiaries
(FOS) in the UK. The regional development and international-business literatures are used to develop
a conceptual framework on the links between autonomy, the use of networks, and domestic sourcing.
Data from a survey of German, French, and US FOS in the UK is used to test the model. The results
indicate that increased use of networks and increased operational decision-making autonomy are
associated with increased domestic sourcing, but that only a minority of FOS are increasing their
use of domestic sourcing. The growing importance of global sourcing is considered as a possible
explanation for the low proportion of FOS that are increasing their use of domestic sourcing. The
implications for regional-development policy of the findings are also assessed.
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Citation
Williams, D., McDonald, F., Tüselmann, H. J. and Turner, C. (2008). Domestic sourcing by foreign-owned subsidiaries. Environment and Planning C: Government and Policy. Vol. 26, No. 1, pp. 260-276.
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