Sourcing performance satisfaction: A study of the critical success factors and firm-related characteristics

The aim of this paper is to identify the critical success factors (CSFs) of production sourcing for small and medium-sized clothing firms in Hong Kong, and to explore the effects of these factors and firm-related characteristics on satisfaction with production sourcing performance. A two-stage methodology was applied. In the first stage, a multiple-case study of ten small and medium-sized clothing firms in Hong Kong was undertaken to identify the CSFs and critical performance indicators of production sourcing. In the second stage, a questionnaire-based survey was conducted among 104 small and medium-sized clothing firms to test the developed hypotheses. Based on the findings, the two most significant success factors of production sourcing are the sustaining of long-term relationships with production providers and choosing production providers carefully. The two aspects of production sourcing performance that are most likely to lead to satisfaction are on-time delivery and better quality. The results show that the level of satisfaction with sourcing performance is influenced by certain CSFs and firm-related characteristics.