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What is Global Supply Network

Encyclopedia of Networked and Virtual Organizations
Transnational network of retailers, distributors, transporters, suppliers, and manufacturers that participate in the process of production and/or service. The term “global supply chain” is used interchangeably.
Published in Chapter:
Strategic Decision Making in Global Supply Networks
Ozlem Arisoy (University of Pittsburgh, USA) and Bopaya Bidanda (University of Pittsburgh, USA)
Copyright: © 2008 |Pages: 7
DOI: 10.4018/978-1-59904-885-7.ch200
Globalization has inexorably affected the economies of many nations in both the developed and developing world. As a consequence, national boundaries are becoming less important to the large, multinational corporations who now operate on a global scale. Corporate global networks range from short term outsourcing contracts to long term investments in developing countries that offer low cost operations and/or the promise of future market expansion. Today the Internet and high-speed data networks enable knowledge tasks to be completed practically anywhere in the world, allowing companies in the developed world to achieve cost savings or simply stay competitive enough to survive by shifting work offshore (Saunders, 2003; Schultz, 2004). As a result, an increasing shift of work to low-cost countries will continue for the foreseeable future.
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