Networked enterprise: A new business model for global sourcing

The challenge of global sourcing is to have a management in sourcing operations that is difficult to imitate by competitors. Global companies are now striving to develop a sourcing strategy to support a new business model that caters for operations in any parts of the world. This paper proposes that the development of a new business model in an established firm will depend on the extent to which a firm leverages the factor conditions and resolving conflicts. A framework is developed to describe the dynamics of business model. A case study on Hasbro Far East Inc is presented to show the development of an information hub as their new business model. The findings of the case study support the argument that factor conditions and conflicts play a key role in determining the success of transforming to a new business model. Thus, the transformational path to information hub is dependent on the extent to which these conditions are played out in the new arrangement. Future research should concentrate on development of collaborative process to align activities. (C) 2003 Elsevier B.V. All rights reserved.