How to combine global and local sourcing? A multiple case study within the brewery industry

Details

Supervisors

Blome, Constantin

Faculty

Louvain School of Management

Degree label

Master [120] en sciences de gestion

Abstract

The present thesis aims to bring insight into how brewing companies combine global and local sourcing. The research also extends on production plant location, supplier selection and assessment process. It intends to establish hypothetical propositions for other industries through a cross-analysis between the theoretical framework and case findings. The first part of this thesis reviews the literature on global and local sourcing and on the brewing industry. A holistic multiple-case approach is then used to bring about similarities and anticipate contrasts in the results. To do so, four companies were selected based on their size and internalisation factor: Ab Inbev (MNC), Martens (MNC), St Feuillen (SME), and L’Echasse (SME). Each case is analysed separately to provide an in-depth characterisation of its different sourcing practices. A cross-case analysis highlights the most important findings, comparing similarities and contrasts in the single-case analyses. Results are discussed in the context of current theoretical knowledge aiming to develop generalised propositions. Results indicate significant differences between SMEs and MNCs in their “glocal” sourcing strategy. In addition, findings show that while the locational sourcing strategy does not necessarily depend on the industry cluster factor, the nature of raw materials and the market strength of the supplier vs. buyer have a compelling effect. Moreover, the efficiency of commonly used models of suppliers’ selection and benefits of the location of production plants are discussed. In the discussion section, eight propositions highlight the results, which managers can use when designing their sourcing strategy. The inherent limitations of the approach are presented in the conclusion section -- it is essential to note that these propositions are of hypothetical nature and should not be taken as absolute.