The Curious Case of Alternate Sourcing: Studies on the Impact of Alternative Supply Chain Approaches

The phenomenon of using alternative sourcing has attracted the attention of researchers in the field of supply chain and operations management. Alternative sourcing refers to any method other than the status quo. When competition arises in the marketplace, firms tend to innovate by deviating from status quo approaches and take risks to gain advantages throughout their supply chains. One such alternative sourcing risk is using soft criteria primarily in the supplier selection process. While anecdotal evidence exists, the supplier selection literature stream fails to explain how alternative sourcing might impact operational performance. Such alternative approaches- evaluating tangibles versus intangibles- have come under scrutiny. Firms have used soft criteria, considered more difficult to quantify, mainly as a supplement to hard criteria- those status quo criteria based on operational performance metrics of cost, quality, timeliness of delivery, service level, etc. Researchers and practitioners alike have found empirical evidence to support a plethora of theories regarding the impact of hard criteria in supplier selection on the operational impact of buyer-supplier relationships. This research examines alternative sourcing by studying alternative supplier selection criteria, simulating the status quo versus alternative supplier selection methodologies, and studying alternative supplier evaluation techniques. First, the qualitative examination of sourcing teams provides case studies in private and public sector organizations to abductively establish boundaries of alternative supplier selection approaches. Second, a numerical experiment compares status quo supplier selection versus alternative methodologies to ultimately test long-held supplier selection assumptions. Lastly, a qualitative study of alternative supplier evaluation techniques establishes boundaries of alternative supplier evaluation approaches. This research makes theoretical contributions to sourcing and organization behavior literature streams.