Characteristics of transcontinental sourcing and the relevance of this special sourcing form for global sourcing trends

Purpose This paper aims to concentrate on the research gap concerning individual characteristics of transcontinental sourcing, continental as well as local sourcing. In addition, it focuses on the relevance of transcontinental sourcing in regard to global sourcing trends, especially the reported relative decline in European sourcing and the factors that are leading to this trend. This research expands the field of global sourcing literature by distinguishing between continental [intra-European Union (EU)] and transcontinental sourcing, supporting purchasing departments to improve their locational sourcing decisions according to their commodities. Current literature only differentiates between local and global sourcing, whereas this research provides a more detailed view. Design/methodology/approach To receive statements about the characteristics of transcontinental sourcing, the authors conduct qualitative research through two series of semi-structured interviews. As data from the first interviews were collected in 2021 and other events such as the Ukraine–Russia war affected international supply chains, they repeated the interviews with additional purchasing professionals to get their views on trends. Based on this, they developed a transcontinental sourcing model, which describes advantages and correlations of this sourcing type. Finally, ranking card experiments as quantitative research were conducted to examine the importance of decision factors of the transcontinental sourcing model developed in previous interviews. Findings By analyzing the characteristics of each sourcing type, the authors identified possible reasons for a shift toward transcontinental sourcing, which are illustrated in the developed propositions. Of particular note is the role of transcontinental suppliers as strategic partners, their ability to handle a large purchasing volume and their favorable price–quality ratio. Furthermore, the dependence on transcontinental suppliers has increased due to their unique selling proposition in certain areas such as electronic components or information technology. Research limitations/implications The results of the interviews and experiments offer deep insights into possible reasons for the relevance of transcontinental sourcing and help companies to make better locational sourcing choices. However, the number of interviews and sample size within experiments is limited and is confined to a European perspective. All interview partners were located in the Netherlands or Germany. It is also worth mentioning that transcontinental sourcing is a broad category that includes sourcing from Asia on the one hand and sourcing from the USA on the other. In this varied context, the specific characteristics of this sourcing type may differ. Practical implications Based on the transcontinental sourcing model, it could be helpful for companies to identify an appropriate sourcing type by working through an iterative process: 1. The initial supplier pool provides the prospect of selecting an important and innovative supplier. 2. Purchasing managers may benefit from a classification of selected suppliers using Tables 2 and 3. Depending on characteristics, there are various sourcing options to choose from local sourcing to continental and transcontinental sourcing. In the end, the appropriate sourcing type is chosen. Hence, companies could orientate themselves by becoming acquainted with the experiences of other firms, so that they can choose the best possible sourcing type and gain a competitive advantage. This process can be undertaken several times for each supplier. Originality/value This research examines global sourcing trends, differentiating global sourcing into intra-EU and transcontinental sourcing. The supplier characteristics table provides practical implications for buyers to make more appropriate sourcing decisions, while the presented propositions explain the relevance of transcontinental sourcing. The study identifies previously neglected reasons and causal mechanisms for international supplier selection, such as the exclusive availability of high-volume production locations.