This study explores the dynamic process of global sourcing development through a case study of the Swedish home furnishing giant IKEA and its supply network concerning the PAX wardrobe system. The paper provides a synthesis of the existing global sourcing literature by dividing this growing body of research into three major themes: globalization processes and stages, motives$/$drivers$,$ and organizational design and management. Moreover, the paper integrates the global sourcing literature with the established literature on the internationalization process of firms. Comparing the existing research on global sourcing and internationalization, we propose two research questions focused on: $(1)$ the ways in which the IKEA global sourcing and supply chain development process resembles a linear stages process, and $(2)$ the principal drivers of the development of global sourcing within IKEA. Relating the findings of the global sourcing process in the case of IKEA, the paper suggests that the process does not fit the linear and incremental stage processes as suggested in the majority of global sourcing literature, but rather fits the interaction and network process model as suggested in the network school of internationalization. Key words: global sourcing, internationalization, IKEA $1.$ Introduction Global sourcing is one of the greatest strategic challenges for purchasing and supply managers. Under increasing pressures to reduce costs, companies have shifted, and continue to shift, sourcing from local suppliers to low cost country$-$based suppliers. The current economic recession shows little evidence of reversing this trend; in fact, it is likely to increase the pressure to source globally. Yet, the global sourcing process is riddled with difficulties and frequently underestimated by firms. Furthermore, the lower prices offered by low$-$cost country suppliers rarely translate into significantly lower total costs of ownership $($Steinle and Schiele $2008).$ Despite the popularity of global sourcing across both service and manufacturing industries, research into global sourcing is still playing catch$-$up and remains poorly conceptualized, for example in comparison with research on buyer$-$supplier relationships or industrial networks $($Quintens$,$ Pauwels, and Matthyssens $2006$b$).$ The trend towards global sourcing is likely to fundamentally change the dynamics of buyer$-$supplier relationships and networks, but little research to date