Global Sourcing of Services and Manufacturing Activities : Is It Any Different ?

International sourcing strategies and operations of firms are usually described distinctively for manufacturing and services. In this conceptual paper we question the strategic relevance of this distinction. As an alternative, we present an activity-based theoretical framework for exploring the linkages between the attributes of the globally sourced activities and the international sourcing strategies and operations of firms. The framework includes three key attributes of the sourced activity: (1) the degree of discretionary judgment allocated to the local operator in carrying out the activity; (2) the degree of site specificity of the assets enabling the local activity; (3) the degree of interdependence between the local operator and the other units of the parent organization in implementing the activity. We argue that these attributes in common, rather than differences between manufacturing and services activities, defines firms’ sourcing is the key determinant of the sourcing process and outcome. Finally, we discuss the implications for research and managers.