The Dynamics of Global Sourcing

Dealing with uncertainty is at the core of organizational economics. Firms have organized their global value chains over the past decades to generate efficiency gains through offshoring opportunities, either within or outside the boundaries of the firm. Yet, recent events have led to a significant increase in global uncertainty. This project investigates how firms should re-optimize their global sourcing strategy in the face of this dramatic change in the economic environment. The project will contain a theoretical part and an empirical dimension using data from three different sources: rich Danish survey data; Korean survey data; and information about IUS shipping imports. It will also research potential data sources to analyze the question from an Australian perspective.