Towards a “theoretical toolbox” for strategic sourcing

Purpose The goal of this paper is to provide a broad foundation for future research in the area of strategic sourcing. Design/methodology/approach The foundation is derived by drawing from various well‐established organizational theories. Specifically, strategic sourcing was viewed from the perspective of institutional theory, resource dependence theory, network theory, systems theory, resource/knowledge‐based views of the firm, transaction cost economics, agency theory, strategic choice theory, sociocognitive theory, and critical theory. Findings By viewing strategic sourcing through the lens of ten organizational theories, this research provides multiple insights into many interrelated strategic sourcing questions, such as when to make, buy or ally, how many and which suppliers, and how to manage sourcing relationships. The paper offers a rich and diverse foundation to foster future theory‐building activities in sourcing and supply management research. Originality/value While some of these theory bases have been utilized, to some degree, in the supply management research, the paper offers a more holistic perspective of theoretical insights for strategic sourcing. Each of these organizational theories could be utilized as a foundation for future studies. Further, the paper offers competing and/or complementary theory bases to enhance possible insights into many strategic sourcing questions such as when to make, buy or ally.