Factors Affecting International Supplier Selection

An important review of criteria and anal5d ical methods in the area of domestic supplier selection has been done by Weber et al. (1991), who reviewed 74 articles that discuss supplier selection. Further, they provide a comprehensive list of the criteria that academicians and purchasing practitioners have considered as important in the supplier selection decision (Table 8.3). It is interesting to note that most articles consider more than one criterion when developing supplier selection models, emphasizing the inherent multiobjective nature of the supplier selection process. 

Some of the criteria mentioned in Table 8.3 have also been used for international supplier selection. They are classified by Choy and Lee (2002) according to technical capabilities, quality assessments, and organization profiles, while Atkinson (2003) divides them into political, currency, and logistics risks. In Table 8.4, we propose an alternative classification for international supplier selection criteria. Political issues are not considered in this classification. In most cases, they are rarely a concern since only a major event could paralyze the exports of a country. We shall discuss the four major international categories of criteria in detail next. 

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