This study empirically tested the factors influencing Korean firms' international sourcing strategy decisions using a model that combines a transaction cost approach with a strategic management approach. Prior studies have mainly explained the determinants of sourcing strategy through an economic approach. However, the researchers' findings indicated that the economic approach alone was insufficient to explain Korean firms' international sourcing strategies. Therefore, the researchers proposed an analytical model of corporate sourcing strategy decisions that integrates a strategic approach with the cost-centered economic approach, and empirically tested the established research hypotheses through logit analysis using data collected from Korean manufacturing firms engaged in foreign direct investment. The empirical analysis results showed that uncertainty factors and core competency factors were significant variables in determining international sourcing strategy, and that firms with higher asset specificity tended to prefer internal sourcing strategies.