| Summary: | This paper investigates the development of domestic sourcing by foreign-owned subsidiaries
(FOS) in the UK. The regional development and international-business literatures are used to develop
a conceptual framework on the links between autonomy, the use of networks, and domestic sourcing.
Data from a survey of German, French, and US FOS in the UK is used to test the model. The results
indicate that increased use of networks and increased operational decision-making autonomy are
associated with increased domestic sourcing, but that only a minority of FOS are increasing their
use of domestic sourcing. The growing importance of global sourcing is considered as a possible
explanation for the low proportion of FOS that are increasing their use of domestic sourcing. The
implications for regional-development policy of the findings are also assessed.
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