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[Throughout the 1990s, cost efficiency was the leading principle that guided firms’ decisions about how to source, produce, and distribute their goods and services (Christopher & Peck 2004:2; also see Tang & Tomlin 2008:12; Lee 2004:102; CLSCM 2002:3). To take advantage of national and local differences in labor costs, resource costs, tax or regulatory conditions, firms globalized their value creation activities. To benefit from economies of scale and scope, they internalized activities critical to supporting their core competencies and outsourced large parts of the remaining activities (Prahalad & Hamel 1990:83; Choy et al. 2003:225; see also Quinn & Hilmer 1994:55; Arnold 2000:25f.).]
Published: Jun 26, 2018
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