Domestic and Import Sourcing Strategies and Their Impact on Business Performance in the Acrylic Sheet Trading Industry

Abstract

Sourcing strategy is a critical operational and strategic determinant of business performance in trading industries. This study examines the comparative impact of domestic and import sourcing strategies on business performance within the acrylic sheet trading industry in India. Using a case-based, applied research design grounded in internal business data from an established trading firm (Kavery Acrylic & Co., Bengaluru), the study evaluates six key performance dimensions: procurement cost, lead time, supply reliability, quality consistency, working capital requirements, and operational risk. A structured comparative and descriptive analytical framework is employed in lieu of large-scale statistical modeling, given the qualitative and semi-quantitative nature of the data. Findings reveal that import sourcing offers a relative cost advantage on a per-unit basis, while domestic sourcing outperforms across the remaining five dimensions—delivering shorter lead times (15–20 days versus 45–60 days), higher supply reliability, more consistent product quality, lower working capital commitment, and reduced operational risk. Based on these findings, the study concludes that no single sourcing strategy is universally optimal; rather, a hybrid sourcing approach that combines cost advantages of import procurement with the operational stability of domestic procurement is most conducive to long-term business performance. The study contributes practically relevant insights for small and medium trading enterprises navigating sourcing decisions in price-sensitive, competitive markets.