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How do global companies make wise choices of countries for sourcing their suppliers?

  • Recherche
  • Logistique et Supply Chain

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Antony, together with his colleagues from NEOMA, presents research conducted with the University of Bristol on how international companies choose countries for sourcing. The concept of « country risk, » once focused on economic conditions and political stability, now includes three major sociopolitical factors: populism, which creates regulatory uncertainty; state fragility, which affects suppliers’ ability to deliver; and checks and balances, which can limit but not always prevent political drift.

The study, covering 1,300 U.S. companies and their suppliers in 90 countries, shows that these factors directly influence sourcing decisions. Examples like Samsung and H&M illustrate this shift toward countries perceived as more stable. In conclusion, companies must strengthen their geopolitical monitoring to anticipate risks and secure their supply chains.

Mots clés
  • Checks and balances, Country risk, Global suppliers, Institutions, International sourcing, Offshoring, Political instability, Populism, State fragility, supply chain

Auteur.e(s)

PAULRAJ Antony
Professeur de gestion des opérations et supply chain
NEOMA Business School

Institution(s)

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