Barriers to Local Sourcing

Over the last several years there has been increased enthusiasm surrounding local interests, particularly when it comes to the economic development of local communities (Esteves, Barclay, 2011). This study seeks to identify potential barriers to local sourcing that have not been previously identified in literature. By conducting interviews with organizations in the private and public sectors, this study was able to gain a broad perspective of the sourcing decision making process across these sectors. The study was able to determine three new barriers to local sourcing. First, in the private sector, the lack of personal commitment to local sourcing from the decision maker to source locally is a barrier. Second, in the public sector, the intention behind procurement policies are creating the barrier for local sourcing opportunities. Finally, both private and public sectors experience the same external barriers due to a mismatch of the local supply base and the needs of the organization.