Sourcing as business model for obtaining competitive advantage

Abstract

Abstract The main aim of this paper is to explore sourcing as a business model that can be used by companies for obtaining competitive advantage over their rivals in a global environment. The strategic approach of sourcing has become an important capability for firms over the last 20 years as the international competition has intensified and given also the limited internal resources. This analysis approaches the worldwide necessity of identifying strategic sourcing relationships for creating new capabilities. A developed international sourcing based on partners/ suppliers was paramount for some companies to overpass the Covid-19’s disruptions in production and supply of different products and to overcome their competitors. Although these companies were affected on short run, they showed a high shock absorption capacity and ability to recover quickly after the shock. In a nutshell, they were more resilient to external shocks, and they succeeded to overcome the difficulties through an agile business reaction. Based on available theoretical data on sourcing, this paper takes a step forward by sketching a practical guide allowing companies to understand if they need to source totally or partially their portfolio of products. Furthermore, for those companies to which the sourcing solution becomes a necessary strategic move, this paper provides a view on the process they should follow to obtain a competitive advantage.