Sourcing in China Strategies, Methods and

Global competition requires a global approach to sourcing activities and China now constitutes one of the most attractive sourcing regions. This book highlights the inducements, advantages and obstacles faced by the enterprises in the development of a sourcing channel in China. A taxonomy of the various sourcing typologies is proposed and a normative model is described that, on the basis of some discriminating variables, suggests the most suitable sourcing choice. The book examines the paths leading to an effective sourcing channel and International Purchasing Office in China, providing concrete examples of successful sourcing experiences.

Guido Nassimbeni is Professor of Economics and Business Strategy at the University of Udine, Italy.

Preface by Cesare Romiti

x

Foreword by Giovanni Atti

xii

Introduction

xviii

1 International Sourcing: Literature

1

(32)

Introduction

1

(2)

International sourcing (IS): some explanations of this expression

3

(2)

IS determining factors

5

(4)

IS inhibiting factors

9

(7)

IS types and development paths

16

(17)

2 China: the Geo-economic Scenario

33

(25)

Introduction

33

(1)

Historical facts

33

(4)

The macro-economic scenario

37

(6)

Direct investments

43

(4)

Other economic parameters

47

(3)

Current transformations and related problems

50

(5)

Conclusions

55

(3)

3 The Research

58

(14)

Introduction

58

(1)

Objectives and methodology

59

(1)

The sample

60

(4)

The choice of Chinese area

64

(8)

4 Types of Sourcing in China: a Classification

72

(15)

Introduction

72

(1)

Imposed sourcing

73

(1)

Intermediated sourcing

74

(3)

Direct sourcing

77

(5)

Examples

82

(5)

5 IS Strategy and Planning in China

87

(25)

Introduction

87

(1)

Type selection: a model

88

(6)

The creation of a purchasing channel in China

94

(12)

The creation of an IPO (International Purchasing Office)

106

(6)

6 Aspects and Critical Issues of IS in China

112

(16)

Introduction

112

(1)

Intermediation

112

(3)

Organisational decentralization

115

(2)

Relationships logic and negotiation

117

(5)

Technology transfer and intellectual property rights

122

(6)

7 Foreign Investments: Modalities and Legislative Constraints

128

(18)

Introduction

128

(1)

Historical trend of the investments from foreign countries

129

(2)

The main investment sources

131

(10)

Constraints to the creation of joint ventures and wholly foreign-owned enterprise

141

(1)

Further investment forms

142

(4)

8 Transport Infrastructures

146

(15)

Introduction

146

(1)

Transport evolution

146

(1)

Rail transport

147

(2)

Air transport

149

(4)

Road transport

153

(2)

Ship transport

155

(6)

9 Conclusions

161

(68)

Case Studies

Black & Decker

165

(13)

The worldwide reconfiguration of manufacturing and the Global Purchasing Asia unit

Campagnolo Commercio

178

(12)

From seller to product developer: the 'Chinese factory' gives rise to a new business idea

Daniell Group

190

(10)

imposed' sourcing in a strategic sector

Trudi

200

(15)

From West to East: the migration of manufacturing

Zenasia

215

(14)

The outsourcing of logistics services for SMEs

Bibliography

229

(8)

Index

237

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Sourcing in China Strategies, Methods and Experiences

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