l scale to gain competitive advantages.
In global industries competitive advantages derive, in large part, from the integration and coordination on an international scale of the various activities of the value chain, while in the domestic markets the competitive advantages are specific to each country and different local strategies. In a global procurement strategy, it is important to reduce total costs as well as design, production, and distribution times (Mitchell, 1995).
Market globalization requires achievement of high standards of performance in quality, timeliness, total costs, and customer service. To reach these levels of performance simultaneously, a company must change and improve all the phases in the value chain continuously. In each phase of the value chain (design, purchasing, production, and distribution), these actions must involve organization and management, management systems, and technology management and application (Mitchell, 1995).
A central issue confronting firms entering into the glob
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