Geopolitical Tensions and Strategic Tradeoffs in Sourcing Localization: An Abductive Study of the U.S. Electric Vehicle Industry
Prof. Yifan WEI
Assistant Professor in Strategy
Beedie School of Business
Simon Fraser University, Canada
Date: 14 January 2026 (Wednesday)
Time: 11:00-12:30
Venue: E22-G008
Host: Prof. Tianyou HU, Assistant Professor in Management
Abstract
Firms increasingly face trade-offs between complying with political demands for localized sourcing and maintaining efficient supply chains. Using granular data on electric vehicle (EV) components from 2009 through 2023, we employ an abductive approach to uncover insights. In response to the United States (U.S). industrial policies, U.S. EV makers increased domestic sourcing not only for high-tech “core” components advocated by policies, but also for “non-core” components, commodities where localization was less economically justified. Furthermore, U.S. EV makers reduced sourcing from European Union (EU) suppliers more than from Chinese suppliers due to initial sourcing patterns, fostering U.S.-EU supply chain decoupling. Finally, reliance on smaller domestic supplier markets harms production, with U.S. EV makers that increase domestic sourcing experiencing lower output, whereas EU and Chinese EV makers show less of this pattern.
Speaker
Prof. Yifan Wei is an Assistant Professor of Strategy at the Beedie School of Business, Simon Fraser University. His work, published in leading management and policy journals, investigates organizations’ interactions with domestic and global institutional environments, with a focus on corporate political activity, innovation, and ESG (environmental, social, and governance) practices.
All are welcome!
