obalization in the contemporary period (which, within the context of this discussion, began circa 1990 and continues in the early years of the twenty-first century). In the contemporary period, innovations "occurring within any of the developed economies can be transferred to and adopted within any other developed economy in a minimum amount of time" (Lewis & Harris, 1992, p. 115).
Globalization in industrial trade is growing in relation to both finished products and components. "It is believed that this phenomenon will grow as it is aided by the progressive reduction in barriers between countries and differences between consumers" (Balasubramanyam & Greenaway, 1992, p. 176). To obtain competitive advantages in global industries, all producers (including those in other countries) are competitors. Market integration means that choices in design, purchasing, and assignment of production and distribution tasks must coordinated on a global scale to gain competitive advantages (Balasubramanyam & Greenaway, 1992).
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 organiz
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