Literature Review Literature On Sourcing Performance

Literature review

This section includes prior studies which were done on the research variables identified. Accordingly, sourcing strategy refer to sourcing strategy encompasses a variety of factors, including the number of suppliers that will be contracted, the type of relationship that will be pursued with suppliers, and the type and conditions of contracts that will be negotiated (Van Weele, 2009 cited from Rijpkema et. al 2004). Whilst partnership quality refers to a reciprocal interactive, inter-organizational relationship to achieve shared goals’. (Lee and Kim (1999), Lee (2001) and Byramjee et al., (2010). Sourcing performance can be defined as quality of buying products/materials at the right quality, in the right time and right place,

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Sourcing strategy

Sourcing strategy refer to the method of sourcing with regard to different raw materials sourced by the entity. Sourcing aids the adoption of a proper production strategy is regarded as a strategic approach that firms can use to maintain their comparative and competitive advantages. (Elmuti and Kathawala, 2000; Sheth 1996; Villa 1998; Zeng 2000)

Single sourcing is often preferred to multiple sourcing because of an imminent cutting of costs. Single supplier-buyer relationships offer different cost advantages. As volumes are not split between different sources, the buyer has the opportunity of negotiating better purchasing conditions (Ellram and Billington, 2001; Buttack, 2001; Brierly, 2001).

Quality standards

Quality of incoming materials involved not only careful attention to incoming inspection procedures for purchased inputs from suppliers, but also deliberate evaluations of vendors’ quality performance and supplier selection based on criteria beyond only lowest price. (Forker

(Forker 1997)

Improving the quality of supply chain processes leads to cost reductions, improved resource utilization and improved process efficiency. (Beamon and Ware, 1998; Vladimirov, 2011) Despite the potential advantages of quality controls (Baird et al., 2011), small firms might be unwilling or find it hard to implement them. (Mikkola, 2008)

Supply chain proximity

Supply chain proximity is referred to as ‘physical closeness of the buying and supplying firm and the JIT measures taken by firms for improved, synergistic performance.’ (Narasimhan, 2005)

Partnership quality

The Partnership Quality construct consists of three latent variables (i.e. Cooperativeness, Trust and Commitment) (Lee 2001; Han et. al. 2008; Chang et. al. 2008; Lahiri et. al. 2009; Lai et. al. 2009)

A partnership’s quality explains the reciprocal behavior and relational norms in an exchange process. (Sun et. al.