Global Sourcing and Its Associated Challenges in the Mining Industry in Ghana

Elizabeth Serwaa Boateng Koomson; Ampong Afoakwah Emmanuel; Osei Asibey; Ernest Kwaku Agyei

doi:doi:10.11648/j.sjbm.20210904.15

| Peer-Reviewed

Global Sourcing and Its Associated Challenges in the Mining Industry in Ghana

Elizabeth Serwaa Boateng Koomson, Ampong Afoakwah Emmanuel, Osei Asibey, Ernest Kwaku Agyei

Published in Science Journal of Business and Management (Volume 9, Issue 4)

Received: 5 July 2021 Accepted: 5 October 2021 Published: 24 December 2021

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

This research investigated the extent, benefits and challenges of Global Sourcing in the Ghana Mining industry. The study looked at the level of outsourcing outside the country, the products that are sourced globally, factors that contribute to the decision to source globally, challenges of global sourcing and above all the benefits that these companies derive from sourcing globally. Three mining companies each representing the large, medium and small-scale mining companies in Ghana were used as case studies. A well-structured questionnaire was sent to these companies to gather primary data. Secondary data from various offices within the supply chain departments of these companies were also used to supplement data obtained from the survey. Using the Statistical Package for Social Sciences (SPSS) software, both the primary and secondary data were analyzed. The analysis included the use of basic descriptive statistics and graphical representations using bar charts, histograms, scatter plots, etc. Even though the literature cites cost as the key factor for Global sourcing, the study showed that for the Ghana mining Industry, product quality is the primary factor. From the study, Quality recorded 45%, Competitive advantage 20%, and combined cost and global outlook recording 16.7% when respondents were asked about the most important factor influencing global sourcing in their respective companies. Differences in the legal frameworks and business environments of foreign sources possess many challenges to the mining companies contrary to popularly observed challenges with delivery and lead time. There are no clearly defined models or strategies for doing global sourcing in the companies as various authors have noted however contrary to the traditional belief that M&M companies conduct Low Cost Country Sourcing (LCCS), the companies under study preferred Best Cost Country Sourcing (BCCS) which recorded 55.2% against 44.8% for both LCCS and BCCS.

Published in	Science Journal of Business and Management (Volume 9, Issue 4)
DOI	10.11648/j.sjbm.20210904.15
Page(s)	269-280
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Global Sourcing, Challenges, Driving Forces of Global Sourcing, Global Sourcing Strategies, Success Factors, Findings, And Recommendations

References

[1]	Accenture (2009) Assessing Capable Countries. Bermuda: Accenture.
[2]	Asaf, M., Bonincontro, C., and Johnsen, S. (2006) Global Sourcing & Purchasing Post 9/11. Florida: J. Ross Publishing, Inc.
[3]	Beery, J. (2006) Offshoring Opportunities. New Jersey: John Wiley & Sons, Inc.
[4]	Birou, M. L., and Fawcett, E. S. (1993) ‘International Purchasing: Benefits, Requirements, and Challenges’. Journal of Supply Chain Management 29 (2), 27-37.
[5]	Businessdictionary.com, (2011). What is Low Cost Country Sourcing. [online] available Fromhttp://www.businessdictionary.com/definition/low-cost-country-sourcing-LCCS.html[21 October 2011].
[6]	Carey W. P. School of Business (2007) Focus on global sourcing: Strategies for Success [online] 2011].
[7]	Carmel, E., and Tjia, P. (2005) Offshoring Information Technology. Cambridge: Cambridge University Press Cengage, G. (2002) “Cross-Sectional Study” in Encyclopedia of Public Health Ed. Lester Breslow. Vol. 1.
[8]	Charter, M., A. Kielkiewicz-Young, A. Young and A. Hughes (2001) Supply Chain Strategy and Evaluation. London: Centre for Sustainable Design, University College.
[9]	Cho, J., and Kang, J. (2001) "Benefits and challenges of global sourcing: perceptions of US apparel retail firms", International Marketing Review 18 (5) 542 – 561.
[10]	Crnic, F., Kleeman, U., and Seider, C. (2006) Low-cost country sourcing can benefit a company’s bottom line Supply Chain Management, New York: IBM Global Business Service.
[11]	Dejuan, J., Du, V., Lee, D., Nandgaonkar, S., and Waddell, K. (2010) Global Sourcing in the Post downturn Era. Boston: The Boston Consulting Group, Inc.
[12]	Dutzler, H., Phillips D., Mansson, A., and Parthasarathy S. (2011) Best-Cost Country.
[13]	Elkins, D., Kulkarni D., and Tew, J. (2008) ‘Identifying and Assessing Supply Chain Risk’. ed. by Robert B. H. and Kevin M. Supply Chain Risk Management Minimizing Disruptions in Global Sourcing 51–56. DOI: 10.1201/9781420013306.ch3.
[14]	Farahani, Z. R., Asgari, N., and Davarzani, H. (2009) Supply Chain and Logistics in National, International and Governmental Environment: Concepts and Models. New York: Springer-Verlag.
[15]	GTNEXUS (2007) Getting a Handle on Global Sourcing. Oakland: G T Nexus, Inc.
[16]	Hayes I. S., (2003) Ready or Not: Global Sourcing is in Your IT Future. Cutter IT Journal, 2002. 15 (11), 5 - 11.
[17]	Hongi, E., and Holweg, M. (n.d.) Evaluating the Effectiveness and Efficiency of Global Sourcing Strategies. A Conceptual Note.
[18]	Hultman, S., Hertz, R., Johnsen, T. (2009) Global Sourcing Development at IKEA – a Case Study. Paper prepared for the 25th IMP conference.
[19]	IBM (2009) The Smarter Supply Chain of the Future Global Chief Supply Chain Officer Study Metals and Mining. New York: IBM Corporation.
[20]	Jeffres, S., and Hobson, G. (2008) Global Sourcing: Understanding the People and organizational Capabilities needed for a Successful Transformational Journey. Bangalore: Infosys Limited.
[21]	Jin, B., and Farr, A. C. (2010) ‘Supplier Selection Criteria and Perceived Benefits and Challenges of Global Sourcing Apparel Firms in the United States’. Family & Consumer Sciences Research Journal 39 (1), 1552-3934.
[22]	Maxim, J. (2008) Current Challenges in Global Sourcing. ‘93rd Annual International Supply Management Conference’. May 2008.
[23]	Monczka, R. M. and Trent, R. J. (1991). 'Global Sourcing; A Development Approach’. International Journal of Purchasing and Materials Management 27 (2), 2-8.
[24]	Monczka, M. R., Handfield, B. R., Giunipero, C. L., and Patterson L. J. (2009) Purchasing and Supply Chain Management. 4th edition. Mason, OH: South-Western Cengage Learning.
[25]	Nelson D. R, and Sisk A. L. (2005) Low Cost Country Strategic Sourcing. 90th Annual International Supply Management Conference, May 2005.
[26]	Paquette, L. (2003) The Sourcing Solutions. New York: AMACOM.
[27]	Petersen, J. K., Frayer, J. D., and Scannell, V. T. (2000) ‘An Empirical Investigation of Global Sourcing Strategy Effectiveness’. Journal of Supply Chain Management 36 (2) 39-36.
[28]	PricewaterhouseCoopers (2008) Global Sourcing: Shifting Strategies. A Survey of Retail and Consumer Companies. Toronto: PricewaterhouseCoopers.
[29]	Solish, F., and Semanik, J. (2011) Strategic Global Sourcing Best Practices. New Jersey: John Wiley & Sons, Inc.
[30]	Steinle, C., and Schiele, H. (2008) ‘Limits to global sourcing? Strategic consequences of dependency on international suppliers. Cluster theory, resource-based view and case studies’. Journal of Purchasing and Supply Management 14 (1), 3-14.
[31]	Udal, A. (2007) Best Cost Country Sourcing and the Concept of "Riskturn". [online] available from [30 November 2011].
[32]	Voigt, A. (2007) Best Cost Country Sourcing: The Evolution of Low Cost Country Sourcing. Bonn: Brain Net Bhagwati, (2004), In Defense of Globalization. Oxford: Oxford University Press.
[33]	Bodomo, A. (2013, February). The Globalization of Investment: Chinese Companies in Africa. University of Hong Kong.
[34]	Bosman, R. (2006). The New Supply Chain Challenge: Risk Management in a Global Economy. Johnston: Factory Mutual Insurance Company.
[35]	Buckley, P. & Casson, M. (2009). The internalization theory of the multinational enterprise: A review of the process of a research agenda after 30 years. Journal of international Business Studies.
[36]	Christopher, M. (1998). Logistics & Supply Chain Management: Strategies for reducing costs and improving services. London: Pitman Publishing.
[37]	Jansson, H., Sandberg, S., 2008. Internationalization of small and medium sized enterprises in the Baltic Sea Region. Journal of International Management.
[38]	Larson, P. D., J. D. Kulchisky (1998) Single sourcing and supplier certification: Performance and relationship implications. Industrial Marketing Management 27 (1): 73–81.
[39]	Leenders, M. R. J. Nollet, L. M. Ellram (1994) Adapting purchasing to supply chain management. International Journal of Physical Distribution & Logistics Management 24 (1): 4042.
[40]	Lysons, K., M. Gillingham (2003) Purchasing and supply chain management. Sixth ed. Essex: Pearson Education.
[41]	Mendoz, E. J., J. N. Pearson (1994) Purchaisng’s role in product development: the case for time based strategies. International Journal of Purchasing and Materials Management 30 (1): 3-12.
[42]	Moller K., P. Pesonen (1981) Small business purchasing of capital equipment. Industrial Marketing Management 10 (4): 265–271.
[43]	Monczka, R., R. Trent, R. Handfield (1998). Purchasing and Supply Chain Management. Cincinnati, OH: South Western College Publishing.
[44]	Morrissey, B., L. Pittaway (2004) A study of procurement behaviour in small firms. Journal of Small Business and Enterprise Development 11 (2): 254–262.
[45]	Mudambi R., S. Helper (1998) The “close but adversarial” model of supplier relations in the US auto industry. Strategic Management Journal 19: 775-792.
[46]	Overby, J. W., P. Servais (2005) Small and Medium-sized firms’ import behaviour: the case of Danish industrial purchasers. Industrial Marketing Management 34: 71-83.
[47]	Park D., H. Krishnan (2001) Supplier selection practices among small firms in the United States: testing three models. Journal of Small Business Management 39 (3): 259–271.
[48]	Pender, R. (1993). Partnering for profit. Total Quality Management Magazine 5 (5): 13–16.
[49]	Porter, M. E. (1980) Competitive strategy: techniques for analyzing industries and competitors. New York: Free Press.
[50]	Prahinski, C., W. C. Benton (2004) Supplier evaluations: communication strategies to improve supplier performance. Journal of Operations Management 22 (1): 39–62.
[51]	Pressey, A. D., H. M. Winklhoferb, N. X. Tzokasa (2009) Purchasing practices in small- to medium-sized enterprises: An examination of strategic purchasing adoption, supplier evaluation and supplier capabilities. Journal of Purchasing and Supply Management 15 (4): 214-226.
[52]	Presutti, W. D. (1988) Purchasing management practices of small manufacturers. Journal of Purchasing and Materials Management 24 (4), 26–31.
[53]	Quayle, M. (2000) Supplier development for UK small and medium-sized enterprises. Journal f Applied Management Studies 9 (1): 117–133.
[54]	Quayle M. (2002) Purchasing policy in Switzerland: an empirical study of sourcing decisions. Thunderbird International Business Review 44 (2): 205–236.
[55]	Rindfleisch, A., J. Heide (1997). Transaction cost analysis: past, present, and future applications. Journal of Marketing 61: 30-54.
[56]	Sanchez-Rodriguez, C., D. Hemsworth, A. Martínez-Lorente (2005) The effect of supplier development initiatives on purchasing performance: a structural model. Supply Chain Management: An International Journal 10 (4): 289-301.

Cite This Article

Plain Text BibTeX RIS

APA Style

Elizabeth Serwaa Boateng Koomson, Ampong Afoakwah Emmanuel, Osei Asibey, Ernest Kwaku Agyei. (2021). Global Sourcing and Its Associated Challenges in the Mining Industry in Ghana. Science Journal of Business and Management, 9(4), 269-280. https://doi.org/10.11648/j.sjbm.20210904.15

Copy | Download

ACS Style

Elizabeth Serwaa Boateng Koomson; Ampong Afoakwah Emmanuel; Osei Asibey; Ernest Kwaku Agyei. Global Sourcing and Its Associated Challenges in the Mining Industry in Ghana. Sci. J. Bus. Manag. 2021, 9(4), 269-280. doi: 10.11648/j.sjbm.20210904.15

Copy | Download

AMA Style

Elizabeth Serwaa Boateng Koomson, Ampong Afoakwah Emmanuel, Osei Asibey, Ernest Kwaku Agyei. Global Sourcing and Its Associated Challenges in the Mining Industry in Ghana. Sci J Bus Manag. 2021;9(4):269-280. doi: 10.11648/j.sjbm.20210904.15

Copy | Download

@article{10.11648/j.sjbm.20210904.15,
  author = {Elizabeth Serwaa Boateng Koomson and Ampong Afoakwah Emmanuel and Osei Asibey and Ernest Kwaku Agyei},
  title = {Global Sourcing and Its Associated Challenges in the Mining Industry in Ghana},
  journal = {Science Journal of Business and Management},
  volume = {9},
  number = {4},
  pages = {269-280},
  doi = {10.11648/j.sjbm.20210904.15},
  url = {https://doi.org/10.11648/j.sjbm.20210904.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20210904.15},
  abstract = {This research investigated the extent, benefits and challenges of Global Sourcing in the Ghana Mining industry. The study looked at the level of outsourcing outside the country, the products that are sourced globally, factors that contribute to the decision to source globally, challenges of global sourcing and above all the benefits that these companies derive from sourcing globally. Three mining companies each representing the large, medium and small-scale mining companies in Ghana were used as case studies. A well-structured questionnaire was sent to these companies to gather primary data. Secondary data from various offices within the supply chain departments of these companies were also used to supplement data obtained from the survey. Using the Statistical Package for Social Sciences (SPSS) software, both the primary and secondary data were analyzed. The analysis included the use of basic descriptive statistics and graphical representations using bar charts, histograms, scatter plots, etc. Even though the literature cites cost as the key factor for Global sourcing, the study showed that for the Ghana mining Industry, product quality is the primary factor. From the study, Quality recorded 45%, Competitive advantage 20%, and combined cost and global outlook recording 16.7% when respondents were asked about the most important factor influencing global sourcing in their respective companies. Differences in the legal frameworks and business environments of foreign sources possess many challenges to the mining companies contrary to popularly observed challenges with delivery and lead time. There are no clearly defined models or strategies for doing global sourcing in the companies as various authors have noted however contrary to the traditional belief that M&M companies conduct Low Cost Country Sourcing (LCCS), the companies under study preferred Best Cost Country Sourcing (BCCS) which recorded 55.2% against 44.8% for both LCCS and BCCS.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Global Sourcing and Its Associated Challenges in the Mining Industry in Ghana
AU  - Elizabeth Serwaa Boateng Koomson
AU  - Ampong Afoakwah Emmanuel
AU  - Osei Asibey
AU  - Ernest Kwaku Agyei
Y1  - 2021/12/24
PY  - 2021
N1  - https://doi.org/10.11648/j.sjbm.20210904.15
DO  - 10.11648/j.sjbm.20210904.15
T2  - Science Journal of Business and Management
JF  - Science Journal of Business and Management
JO  - Science Journal of Business and Management
SP  - 269
EP  - 280
PB  - Science Publishing Group
SN  - 2331-0634
UR  - https://doi.org/10.11648/j.sjbm.20210904.15
AB  - This research investigated the extent, benefits and challenges of Global Sourcing in the Ghana Mining industry. The study looked at the level of outsourcing outside the country, the products that are sourced globally, factors that contribute to the decision to source globally, challenges of global sourcing and above all the benefits that these companies derive from sourcing globally. Three mining companies each representing the large, medium and small-scale mining companies in Ghana were used as case studies. A well-structured questionnaire was sent to these companies to gather primary data. Secondary data from various offices within the supply chain departments of these companies were also used to supplement data obtained from the survey. Using the Statistical Package for Social Sciences (SPSS) software, both the primary and secondary data were analyzed. The analysis included the use of basic descriptive statistics and graphical representations using bar charts, histograms, scatter plots, etc. Even though the literature cites cost as the key factor for Global sourcing, the study showed that for the Ghana mining Industry, product quality is the primary factor. From the study, Quality recorded 45%, Competitive advantage 20%, and combined cost and global outlook recording 16.7% when respondents were asked about the most important factor influencing global sourcing in their respective companies. Differences in the legal frameworks and business environments of foreign sources possess many challenges to the mining companies contrary to popularly observed challenges with delivery and lead time. There are no clearly defined models or strategies for doing global sourcing in the companies as various authors have noted however contrary to the traditional belief that M&M companies conduct Low Cost Country Sourcing (LCCS), the companies under study preferred Best Cost Country Sourcing (BCCS) which recorded 55.2% against 44.8% for both LCCS and BCCS.
VL  - 9
IS  - 4
ER  -

Copy | Download

Author Information

Elizabeth Serwaa Boateng Koomson

Department of Procurement & Supply Chain Management, Kumasi Technical University, Kumasi, Ghana
Ampong Afoakwah Emmanuel

Department of Procurement & Supply Chain Management, Kumasi Technical University, Kumasi, Ghana
Osei Asibey

Department of Procurement & Supply Chain Management, Kumasi Technical University, Kumasi, Ghana
Ernest Kwaku Agyei

Department of Procurement & Supply Chain Management, Kumasi Technical University, Kumasi, Ghana

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Elizabeth Serwaa Boateng Koomson, Ampong Afoakwah Emmanuel, Osei Asibey, Ernest Kwaku Agyei. (2021). Global Sourcing and Its Associated Challenges in the Mining Industry in Ghana. Science Journal of Business and Management, 9(4), 269-280. https://doi.org/10.11648/j.sjbm.20210904.15

Copy | Download

ACS Style

Elizabeth Serwaa Boateng Koomson; Ampong Afoakwah Emmanuel; Osei Asibey; Ernest Kwaku Agyei. Global Sourcing and Its Associated Challenges in the Mining Industry in Ghana. Sci. J. Bus. Manag. 2021, 9(4), 269-280. doi: 10.11648/j.sjbm.20210904.15

Copy | Download

AMA Style

Elizabeth Serwaa Boateng Koomson, Ampong Afoakwah Emmanuel, Osei Asibey, Ernest Kwaku Agyei. Global Sourcing and Its Associated Challenges in the Mining Industry in Ghana. Sci J Bus Manag. 2021;9(4):269-280. doi: 10.11648/j.sjbm.20210904.15

Copy | Download

@article{10.11648/j.sjbm.20210904.15,
  author = {Elizabeth Serwaa Boateng Koomson and Ampong Afoakwah Emmanuel and Osei Asibey and Ernest Kwaku Agyei},
  title = {Global Sourcing and Its Associated Challenges in the Mining Industry in Ghana},
  journal = {Science Journal of Business and Management},
  volume = {9},
  number = {4},
  pages = {269-280},
  doi = {10.11648/j.sjbm.20210904.15},
  url = {https://doi.org/10.11648/j.sjbm.20210904.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20210904.15},
  abstract = {This research investigated the extent, benefits and challenges of Global Sourcing in the Ghana Mining industry. The study looked at the level of outsourcing outside the country, the products that are sourced globally, factors that contribute to the decision to source globally, challenges of global sourcing and above all the benefits that these companies derive from sourcing globally. Three mining companies each representing the large, medium and small-scale mining companies in Ghana were used as case studies. A well-structured questionnaire was sent to these companies to gather primary data. Secondary data from various offices within the supply chain departments of these companies were also used to supplement data obtained from the survey. Using the Statistical Package for Social Sciences (SPSS) software, both the primary and secondary data were analyzed. The analysis included the use of basic descriptive statistics and graphical representations using bar charts, histograms, scatter plots, etc. Even though the literature cites cost as the key factor for Global sourcing, the study showed that for the Ghana mining Industry, product quality is the primary factor. From the study, Quality recorded 45%, Competitive advantage 20%, and combined cost and global outlook recording 16.7% when respondents were asked about the most important factor influencing global sourcing in their respective companies. Differences in the legal frameworks and business environments of foreign sources possess many challenges to the mining companies contrary to popularly observed challenges with delivery and lead time. There are no clearly defined models or strategies for doing global sourcing in the companies as various authors have noted however contrary to the traditional belief that M&M companies conduct Low Cost Country Sourcing (LCCS), the companies under study preferred Best Cost Country Sourcing (BCCS) which recorded 55.2% against 44.8% for both LCCS and BCCS.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Global Sourcing and Its Associated Challenges in the Mining Industry in Ghana
AU  - Elizabeth Serwaa Boateng Koomson
AU  - Ampong Afoakwah Emmanuel
AU  - Osei Asibey
AU  - Ernest Kwaku Agyei
Y1  - 2021/12/24
PY  - 2021
N1  - https://doi.org/10.11648/j.sjbm.20210904.15
DO  - 10.11648/j.sjbm.20210904.15
T2  - Science Journal of Business and Management
JF  - Science Journal of Business and Management
JO  - Science Journal of Business and Management
SP  - 269
EP  - 280
PB  - Science Publishing Group
SN  - 2331-0634
UR  - https://doi.org/10.11648/j.sjbm.20210904.15
AB  - This research investigated the extent, benefits and challenges of Global Sourcing in the Ghana Mining industry. The study looked at the level of outsourcing outside the country, the products that are sourced globally, factors that contribute to the decision to source globally, challenges of global sourcing and above all the benefits that these companies derive from sourcing globally. Three mining companies each representing the large, medium and small-scale mining companies in Ghana were used as case studies. A well-structured questionnaire was sent to these companies to gather primary data. Secondary data from various offices within the supply chain departments of these companies were also used to supplement data obtained from the survey. Using the Statistical Package for Social Sciences (SPSS) software, both the primary and secondary data were analyzed. The analysis included the use of basic descriptive statistics and graphical representations using bar charts, histograms, scatter plots, etc. Even though the literature cites cost as the key factor for Global sourcing, the study showed that for the Ghana mining Industry, product quality is the primary factor. From the study, Quality recorded 45%, Competitive advantage 20%, and combined cost and global outlook recording 16.7% when respondents were asked about the most important factor influencing global sourcing in their respective companies. Differences in the legal frameworks and business environments of foreign sources possess many challenges to the mining companies contrary to popularly observed challenges with delivery and lead time. There are no clearly defined models or strategies for doing global sourcing in the companies as various authors have noted however contrary to the traditional belief that M&M companies conduct Low Cost Country Sourcing (LCCS), the companies under study preferred Best Cost Country Sourcing (BCCS) which recorded 55.2% against 44.8% for both LCCS and BCCS.
VL  - 9
IS  - 4
ER  -

Copy | Download