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Introduction
Imports into the USA from low-cost countries (LCCs)[1] for the first time outpaced those from developed country counterparts in 2006. Imports from LCCs grew approximately 190 percent from $351,159 million in 1997 to $1,023,131 million in 2007. During this ten-year period, imports from developed country grew less than half of the LCC pace, growing at approximately 80 percent from $519,016 million to $930,508 million ([52] TradeStats Express, 2008). US import values from these two country groups during this ten-year period are presented in Figure 1 [Figure omitted. See Article Image.], showing a shift towards LCCs as sources of supply for US firms. The growth in imports from LCC sources is driven primarily by lower costs of products and services provided by suppliers in LCCs, made possible by lower labor costs and access to inexpensive raw materials in these countries ([13] Coyle et al. , 2002, p. 150; [14] Deng and Wortzel, 1995; [19] Eye for Procurement and Eye for Transport, 2006; [23] Ghymn, 1983; [42] Ohmae, 1985; [50] Swamidass and Kotabe, 1993).
Given the fast emerging role of LCCs as supply sources of US firms, it is vital to consider both the cost advantages of sourcing from LCCs and the concomitant logistics challenges. However, challenges associated with sourcing internationally from LCCs and the extent to which they affect a firm's logistics performance have received limited attention in existing logistics and supply chain research. In this paper, 14 variables that encompass a salient sub-set of international sourcing issues and logistics performance were empirically investigated. Developed countries and LCCs included in the study span the world regions of Asia, Europe, and North and South America. The objectives are to understand:
- the issues associated with sourcing internationally from LCCs; and
- how these issues relate to a firms' logistics performance.
In the balance of this paper, background based on prior relevant literature is introduced and research methodology is described. Then, data analysis and key findings are discussed, and discussions of insights for managers are presented. Limitations of the work and directions for future research conclude the paper.
Background
A review of relevant literature suggests that benefits of and issues associated with sourcing internationally differ between supply sources in LCCs and developed countries. Table I [Figure omitted....