Analysing System Sourcing Organising Interplay

Authors: Ingrid Hessel

ABSTRACT
System sourcing has been identified as one sourcing setup that is increasingly applied by
companies as part of the increasing attention given to purchasing by companies. It refers to
the purchasing of a larger system comprising several components, rather than buying these
components in isolation from one or several suppliers. This paper explores the complexity
and variety observed in system sourcing setups, outside the automotive industry context
where the majority of current system sourcing research has been conducted. A literature
review reveals three important dimensions in the organising of system sourcing – system
design, sourcing strategy and organizational arrangements. Furthermore, indications of
interdependencies across these three dimensions calls for further research on the potential
interplay between these three dimensions. A single case study serves to analyse and illustrate
the interplay as well as emphasizing the network context in which these three organising
dimensions take place. The paper concludes with managerial implications and suggestions for
future research.
KEYWORDS
System sourcing, network perspective, system design, sourcing strategy, organizational
arrangements

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Conference: Glasgow, Scotland (2011)