Balancing global and local sourcing, what factors determine the sourcing allocation? Confronting scientific literature to business reality
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- Today, companies are increasingly adopting a sourcing strategy that both combines global and local sourcing, namely glocal sourcing. However, the parameters that are used to determine the right balance between global and local sourcing remain unclear. In an attempt to bridge this gap, the goal of this paper is to confront the factors that are cited in the scientific literature as being determinant in allocating global and local sourcing to the business reality. To that end, the first part of this paper will set the necessary theoretical background while the second part will tackle the research question based on a multiple-case study of 6 companies active in different sectors. By confronting the literature to the insights gathered during those interviews, a hands-on guide composed of 7 propositions will be built and a glocal sourcing framework will be introduced.