How Tigers and Lions Become Masters - A case study on how to emerge as a sourcing destination with evidence from Kenya, China and Bangladesh

Abstract

Global sourcing has become a well-known phenomenon and a much-researched topic. Most research has been conducted from a company perspective. However, there is a demand for a more thorough analysis on global sourcing from a country perspective. The following research contributes to this theoretical gap by analysing underlying factors for how sourcing destinations emerge. This research is a case study of the apparel industry in Kenya, China, and Bangladesh. Kenya is the main focus of this report where primary data is collected through a field research, whereas China and Bangladesh are used as benchmark cases based on secondary data. All cases presenting different strategies for becoming a sourcing destination. The analysis of the empirical findings together with the theoretical framework presents a three-step model of how to emerge as a sourcing destination. The model proclaims the need for one main pull factor supported by country specific competitive advantages for the establishment of sourcing activities. This should then be followed by the creation of a full value chain for the longevity of the sourcing destination. The generalizability of the model makes it applicable to most industries.