An analysis on international sourcing relationships of the transport equipments parts & components manufacturers in Turkey

Intense competitive pressures, in the global markets, have forced companies to find and select new supply sources in the worldwide for improving quality and achieving high technology while simultaneously reducing cost in the long term. On the other hand, realizing the impacts of the suppliers and supplier relationships on firm?s performance and competitiveness has motivated firms to develop long-term sourcing strategies and relationships. Recent literatures have focused so much on these issues; however, little is known about the impacts of the buyers? international sourcing strategies on supplier performance, capability, and also innovativeness.The purpose of this study, from the perception of the suppliers, is to investigate; (1) what kind of relationship structures exists between Turkish transport equipment parts & component manufacturers and their foreign buyers; (2) how Turkish suppliers perceive foreign buyers? supplier selection, supplier development, and supplier relationship strategies, and what are the impacts of foreign buyers? sourcing strategies on supplier performance and innovativeness?This study reveals that Turkish transport equipment parts & components manufacturers as international suppliers, while they are in tier type relationships for some products or buyers, they can be out of the tier type relationships for others. Turkish suppliers perceive that among the foreign buyers? sourcing strategies, supplier evaluation and selection strategy is the most important and influential dimension in international sourcing relationships. From the supplier firms? perception, this current study reveals and confirms that for the long term sourcing relationships quality, delivery, price, with commitment and trust are very important dimensions in international supplier selection. The results of this empirical research, using multiple regression analysis, indicate that foreign buyers? supplier evaluation and selection, supplier management and development, supplier collaboration strategies positively impact supplier performance in terms of non-financial performance, technical performance, and financial performance in the long-term; furthermore improvement in supplier?s technical and financial performance associates positively with supplier innovativeness.Key Words: Globalization, Industrial Marketing, Turkish Parts & Components Manufacturers, Strategic Sourcing, International Supplier Relationships, Supplier Selection, Supplier Development, Collaboration, Performance, Innovativeness