Sourcing from Less Developed Countries: A Case Study

This article reports the results of a study conducted in a European subsidiary of an American‐based firm. The research focuses on the development of a formal approach to international sourcing, with an emphasis on the less developed countries. Results indicate that decision making in sourcing from less developed countries is considerably more complex than it is in the domestic market. There are more variables in the decision matrix; a greater need exists to understand the macro‐economies of the sourcing countries; and more evaluative risk taking is involved in the decision‐making process. This requires the accumulation and interpretation of much more information than is the case in domestic sourcing.