Article

The Future of Purchasing and Supply Management Research: About Relevance and Rigor

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Abstract

The Journal of Supply Chain Management (JSCM) is a hallmark in the academic field of Operations and Supply Chain Management. During the past 50 years it has contributed substantially to the recognition and adoption of purchasing and supply management (PSM) as an academic and strategic business domain. Having been invited by the JSCM editors to provide some ideas on the future directions of PSM research, the authors discuss what can be done to further increase both its relevance and rigor. Rigor and relevance in academic research are interconnected. To improve its relevance, the authors argue that future PSM research should better reflect the strategic priorities raised in the contemporary strategic management literature. Next, future PSM research should be much better embedded in a limited number of management theories. Here, stakeholder theory, network theory, the resource-based view of the firm, dynamic capabilities theory and the relational view could be considered as interesting candidates. Rigor is connected with robustness of academic research designs and projects. In order to foster its rigor, future PSM research should allow for an increase in the number of replication studies, longitudinal studies and meta-analytical studies. Future PSM research designs should reflect a careful distinction between informants and respondents and a careful sample selection. When discussing results of quantitative studies, future PSM research should report on effect sizes and confidence intervals, rather than p-values. Adoption of these ideas would have some important implications for both the academic PSM community and academic journal editors. This article is protected by copyright. All rights reserved.

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... This recent phenomenon has emerged in the last two, three decades. However, companies seem to struggle to find effective and efficient ways to cope with these circumstances (Van Weele & Van Raaij, 2014). It underlines the need and request for employees to possess the necessary skills and competences in this field. ...
... Purchasing and supply management (PSM) plays a pivotal role in increasing overall organisational competitiveness. Between 60 and 80 per cent of total costs (Monczka et al., 2016;Van Weele, 2009) are external to the organisation, i.e. being paid to suppliers, and so PSM's role in spanning organisational boundaries and managing these external networks has become increasingly important (Van Weele & Van Raaij, 2014). In this chapter is referred to the PSM discipline as being focused on the upstream supply network. ...
... There was a risk that there would be a misunderstanding in the scope between the interviewers and the interviewees. Instead, a comprehensive PSM process overview, showing the strategic (Source-to-Contract) and operational (Purchase-to-Pay) processes (Monczka et al., 2016;Van Weele & Van Raaij, 2014), plus typical competence centre responsibilities (e.g. data and systems), was integrated into the interview guide and the interviewers were asked about the competences needed to perform activities within these processes, both currently and in the future. ...
Thesis
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This dissertation’s overarching research objective is to determine which competences lead to success in the purchasing and supply (chain) management function, and the eventual focus is on the most distinct strategic activity in purchasing, which is innovation sourcing. In the past decades, the purchasing and supply chain management discipline changed from an operational function to a strategic function. Innovations are increasingly purchased from suppliers or are co-developed. It places the purchasers in the so-called ‘boundary spanner’ role, meaning that they became virtual bridge-builders between the partners in the internal organisation and the possible suppliers somewhere in the global market. Purchasers fulfil a vital role as ‘boundary spanner’, and a precondition for purchasing’s success is a high level of top managerial support. With quantitative methods, evidence is shown that investing in purchasers’ competence development is useless without acknowledging the importance of the purchasing function in innovation sourcing. In an excellent organisational atmosphere, purchasers can develop and apply their competences. This study measured purchasers’ levels of success or effectiveness per specific purchasing focus (i.e. cost reduction, quality improvement, delivery improvement, sustainability improvement, innovation sourcing, increasing supplier satisfaction and competitive advantage), and purchasers’ competences are revealed that are either sufficient or necessary. Primarily hard skills are associated with success or effectiveness, but soft skills are necessary for hard skills. The outcomes show that purchasers need knowledge and understanding about their product and process but highlight the essence of soft skills. With quantitative methodologies, a hierarchy in competences is revealed; soft skills are necessary conditions to carry out professional hard skills. A successful purchaser for innovations possesses networking skills, complex problem solving, proactivity, result-driven, conflict-resolution, creativity, persuasion, curiosity and an entrepreneurial attitude. These soft skills are necessary to perform well in hard skills as supplier relationship management, innovation management, analytical skills, process and project management and personnel leadership skills that characterise the successful purchaser of innovations. Purchasers need to align the purchasing strategy with the organisation’s strategy and carry out a strategic purchasing plan. To execute these professional hard skills, soft skills, attitudes or traits are needed as strategic thinking, inventiveness, and creativity. However, the literature shows that universities are focused on the learning outcomes regarding hard skills and theory. Therefore, soft skills are mostly absent in courses’ learning objectives. This dissertation’s recommendation for higher education is to include soft skills learning objectives. However, the question is whether these attitudes or traits are innate or can be developed. Therefore an educational experiment is executed demonstrating how soft skills could be developed with three cohorts of master students via a student-centred approach within a timeframe of ten weeks. The educational construct is differentiating between didactics, learning outcomes and assessment of ‘knowledge’, ‘skills’ and ‘traits’ with a book writing project, a real-life purchasing case and personality development workshops. Moreover, this dissertation provides a historical context of purchasing and education in the era of the Internet-of-Thing or Industry 4.0 (i.e. the 4th Industrial Revolution). A parallel is drawn with the challenges during the 1st Industrial Revolution, about two centuries ago. Soft skills development is highly associated with the 19th-century “Bildung” ideals to create ‘better citizens’. Recently, a similar call resounded in the European ministers for education meeting: students need “to become active and responsible citizens in the future”. This thesis alerts that imposed Bildung would obstruct conscious self-development; soft skills development can be influenced by external stimuli but is nevertheless a personal effort. The conclusion could very well be made that the necessity of soft skills for purchasers is forming this dissertation’s red thread. The absence of attention for soft skills development in purchasing curricula in higher education is the other side of the same coin. In Chapter 7 is demonstrated that soft skills can be developed in a short time frame.
... Purchasing and supply management (PSM) as a functional area integrates the external environment and actors of the supply market with the internal stakeholders (Bals et al., 2019;Lorentz et al., 2020;Van Weele and Van Raaij, 2014). PSM decisions range from identification of potential external sources and suppliers and negotiation to operational management of suppliers, supply and spend (Van Weele and Van Raaij, 2014). ...
... Purchasing and supply management (PSM) as a functional area integrates the external environment and actors of the supply market with the internal stakeholders (Bals et al., 2019;Lorentz et al., 2020;Van Weele and Van Raaij, 2014). PSM decisions range from identification of potential external sources and suppliers and negotiation to operational management of suppliers, supply and spend (Van Weele and Van Raaij, 2014). In recent years, the explosion of data, access to such data and the potential of analytics have created the need to revisit which capabilities are necessary for the firm, and by extension, or even independently, its functions. ...
... We define analytics as all the activities that transform data into action, giving rise to new skills being needed, practices developed and governance principles established. The PSM function, specifically, requires capabilities to handle the large amounts of data accumulated internally, the supply market information (Lorentz et al., 2020;Sch€ utz et al., 2020) and the integration of the generated insight with the relevant other functions internally at the firm (Arvidsson and Melander, 2020;Sch€ utz et al., 2020) to satisfy both its cost-saving and long-term strategic purposes (Lorentz et al., 2020(Lorentz et al., , 2021Sch€ utz et al., 2020;Van Weele and Van Raaij, 2014). ...
Article
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Purpose - The purpose of this study is to elaborate on how analytics capability develops within the PSM function. This study is an in-depth exploration of how analytics capability develops within the purchasing and supply management (PSM) function. Design/methodology/approach - A multiple case study was conducted of the PSM function of six case firms, in which primary data were collected through semi-structured interviews with PSM analytics stakeholders. The data were analyzed based on an analytics capability framework derived from the literature. Cases were chosen based on them having advanced PSM practices and ongoing analytics projects in the PSM area. Findings - The findings shed light on how the firms develop their analytics capability in the PSM functional area. While we identify several commonalities in this respect, the authors also observe differences in how firms organize for analytics, bringing analytics and PSM decision-makers together. Building on the knowledge-based view of the firm, The authors offer a theoretical explanation of our observations, highlighting the user-driven side of analytics development, which has largely been unrecognized by prior literature. The authors also offer an explanation of the observed dual role that analytics takes in cross-functional initiatives. Research limitations/implications - The exploratory nature of our study limits the generalizability of our results. Further, our limited number of cases and interviewees indicate that there is still much to explore in the phenomenon of developing analytics capability. Practical implications - Our findings can help firms gain a better understanding of how they could develop their analytics capability and what issues they need to consider when seeking leveraging data through analytics for PSM decisions. Originality/value - This paper is, to the best knowledge of the authors, the first empirical study of analytics capability in PSM.
... Purchasing and Warehouse Department (PWD) has a key strategic role in many contemporary business organizations [12][13][14][15]. As firms increasingly rely on suppliers' inputs and contributions, the strategic importance of the PWD function as the interface managing these inputs has also increased [14,15]. ...
... Purchasing and Warehouse Department (PWD) has a key strategic role in many contemporary business organizations [12][13][14][15]. As firms increasingly rely on suppliers' inputs and contributions, the strategic importance of the PWD function as the interface managing these inputs has also increased [14,15]. In the current global economy, PWD is under increased pressure to find additional value generation beyond efficiency seeking behavior and to search for effectiveness; for example, by bringing in supplier product or process innovations, ensuring sustainability, and participating in product innovation activities (Turkulainen and Swink, 2016) [12,[15][16][17][18]. ...
Article
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Purpose: This study aims to identify and describe the economic responsibility of PWD, based on the concepts of effectiveness and efficiency. Method: To determine and describe the economic responsibilities of the departments that make up the FOS in any corporation, the concepts of effectiveness and efficiency in accomplishing the tasks assigned to those departments were chosen, taking into account the criteria for evaluating the level of quality of effectiveness and efficiency. Result: Through the concepts of effectiveness and efficiency in completing tasks, this study was able to determine and describe the economic responsibility for PWD that was chosen to be the subject of this study, as follows: Providing the tangible and intangible needs for other departments included in the corporation's FOS in a timely manner, with the specified specifications and at the lowest possible cost. Originality/Value: The idea of this study, which depends on the concepts of effectiveness and efficiency in performing tasks, can be adopted in defining and describing the economic responsibilities of the departments included in the FOS of any for-profit corporation. The economic responsibility of the departments lies in the extent of their commitment to the standards of effectiveness and efficiency in the performance of the tasks assigned to them. This study is an enrichment of the thought of CSR and it will be considered the starting point for many studies and research in this field. www.opastonline.com Citation: Younis A.
... Externally, PSM is significantly involved in the upstream decisions, making processes more effective, efficient and sustainable (Foerstl et al., 2010;Schoenherr et al., 2012). Due to the direct relationship with the external part of the enterprise, PSM has the responsibility of mitigating risks and overcoming problems that might arise from the environment or from the upstream supply side (Ramsay and Croom, 2008;Van Weele and Van Raaij, 2014). ...
... Theoretical basis � Supply-Side Resilience (Kamalahmadi and Parast, 2016;Dabhilkar et al., 2016;Brusset and Teller, 2017;Ali et al., 2017) � PSM function (Ellram and Birou, 1995;Van Weele and Van Raaij, 2014;Gualandris et al., 2015;Tate et al., 2016) � Dynamic Capabilities View (Teece et al., 1997;Pisano, 2015) Case selection ...
Article
As the number of supply disruptions is increasing in frequency and severity, firms should not wait idly until an event occurs to act on it. This paper empirically identifies the key capabilities that the PSM function develops and maintains in order to increase resilience in the supply-side of the buying firm. Dyadic case studies were conducted with four buying and supplying companies in Brazil in order to explore how PSM functions contribute internally and externally to supply-side resilience. To provide a framework for understanding the results, the three blocks of the Dynamic Capabilities View (DCV) – Process, Position, and Path – were used as a theoretical underpinning. To support the content analysis, QDA Miner software was used to codify the interviews (data fragmenting and re-assembling) to clarify the data related to the research question and thus facilitate the interpretation. The within-case analyses were conducted focusing on the salient capabilities of PSM's contribution to supply-side resilience, followed by a cross-case analysis to identify similarities and differences across the four cases. The research revealed three key capabilities in which PSM can contribute to supply-side resilience (SSRes): PSM positioning within the company's structure and its authority to make decisions; PSM bundling of proactive and reactive practices from the internal and external part of the organization; and PSM knowledge gathering, storage, and retrieval from business operations that generate competences. By recognizing resilience concerns, PSM managers are more capable of managing and controlling the resources, practices, and competences in their strategic or daily tasks. The resilient capabilities developed by an organization will likely be disseminated to their partners, expanding a resilient effect along the supply chain. This research contributes to the literature by developing a framework that highlights and integrates the PSM dynamic capabilities that contribute to SSRes. Although it has limitations, it allows for future research opportunities.
... In this way, critical activities could be maintained in-house, while non-critical activities are outsourced to external supplier. From the perspective of the RBV, the supplier is therefore seen as a potential source of a scarce resource (Barney, 2012) and (Van Weele et al., 2014). In addition, it is well known that Procurement is the discipline that is concerned with the management of external resources (Van Weele, 2014). ...
... From the perspective of the RBV, the supplier is therefore seen as a potential source of a scarce resource (Barney, 2012) and (Van Weele et al., 2014). In addition, it is well known that Procurement is the discipline that is concerned with the management of external resources (Van Weele, 2014). ...
Article
A profound digital transformation is now underway. As the implementation of digitalisation in supply chain processes has accelerated rapidly, coupled with an ever-increasing level of competitiveness, traditional procurement is changing to adapt to this new paradigm. Research on RPA (Robotic Process Automation) in buyers’ practices is still in its infancy. The aim of the paper is thus to explore the practical implications and impact of RPA in the procurement function in order to improve our conceptual understanding of this recently introduced practice. As first movers, seven case studies from various industries were selected based on their significant successes and experiences in the field of digitalisation in the procurement sector. The findings confirm the relevance of some recognised attributes of procurement automation, while other attributes have also been explored. The study suggests that RPA impacts on procurement in operational, organisational and relational terms. Furthermore, we identify the motives and challenges when implementing this type of initiative in the field of procurement.
... Instead, the need to create value delivery systems that are more responsive to fast-changing markets and are much more consistent and reliable in the delivery of that value requires that the supply chain as a whole be focused on the achievement of these goals." (Christopher, 2016: 15) From this reasoning, more than a source of competitive advantage, supply chain management has been portrayed as a manner to improve the general performance of organizations (Li, Ragu-Nathan, Ragu-Nathan and Rao, 2006) and a key element in the development of operational efficiencies for a wide range of individual activities such as retail (Fernie and Sparks, 2014), purchasing (Weele and Raaij, 2014), outsourcing, and production planning (Roh, Hong and Min, 2014), among others. As discussed by Carter, Rogers and Choi (2015) and Lambert, Cooper and Pagh (1998), the term would have its origins on the work of consultants (Oliver and Webber, 1992), being rapidly assimilated by academia (Ellram and Cooper, 1990;Jones and Riley, 1987), and since then, serving in the gathering of procurement, operations and distribution into a common discipline. ...
Thesis
The association of firms to crimes, condemnable management practices, operational difficulties and / or fails carried out by their partners suggests that negative events occurred in a firm (i.e. source firm) hold the potential to negatively affect others. As firms’ direct and indirect relationships with their partners become less obvious, supply chain risks (March and Shapira, 1987) must be reconsidered to account for this contemporary and possibly hazardous prospect. In addressing this issue, the present dissertation investigates the impacts of negative corporate events to supply chain partners. Throughout three individual but interconnected articles, empirical evidence suggest that beyond the interruption of physical flows, unfavorable circumstances may not be restricted to firms originating them, spreading across their networks. More specifically, based on the premises of the Efficient Market Hypothesis (Fama, Fisher, Jensen and Roll, 1969; Fama, 1970; Jensen, 1978), the utilization of the event study method (Fama, 1970; Brown and Warner, 1980) allowed the demonstration of negative reactions from investors of supply chain partners upon the disclosure of adverse news. In referring to these outcomes, the concept of supply chain contamination is here defined as “the dissemination of negative events through supply chains, negatively affecting not only the market value of customers and suppliers (possibly that of customers of customers and suppliers of suppliers and so on), as well as potentially other dimensions such as corporate reputations, for instance” (Fracarolli Nunes, 2018: 581).Initial theorization of this process is also proposed. The mechanics leading a company to be affected by events originated out of its organizational borders is portrayed in the concept of the inertial effect, illustrated in the image of “the waves caused by a stone that hits the water previously rested” (Fracarolli Nunes and Lee Park, 2016: 292). Within the reasoning of unintended or unanticipated consequences (Merton, 1936), the occurrence of supply chain contamination through the inertial effect is considered a collateral effect. From the intersection of the literatures on supply chain management and the Stakeholder Theory, a new conceptual model is developed. Building on the idea that stakeholders stand for any individual, entity or group that shall either affect or be affected by the operations of a company (Freeman, 1984), the empirical demonstration that investors of a supply chain partner must be affected (i.e. collateral effect) by negative events occurred in or caused by a source firm (i.e. supply chain contamination through the inertial effect), allows the proposition of the concept of incidental stakeholders, here defined as “stakeholders of stakeholders, which, as such, may not be aware of their links with other companies, or even not consciously willing to take the risks associated with such a subsidiary connection” (Fracarolli Nunes, 2019: 4). In this sense, the investigation of 30 cases classified in 5 distinct categories (environmental disaster, corporate social and environmental irresponsibilities, operational failure, corporate fraud and corruption) is expected to offer new perspectives on the structural risks associated to supply chains. Along with the theoretical discussions, practical utilizations are approached, as well as avenues for future inquiries.
... The empirical research can also help the refinement of existing theories and resulting consequences (Mithas and Jones 2007;Hawkins, Randall, and Wittmann 2009) as it has tested the outcome predictions of GT models. It has been also introduced how the design of more effective selection processes can be integrated into their procurement strategies for improving firm's performance (Weele and Raaij 2014), by e.g. using strategic portfolio analysis (Kraljic in our process) and its strategic choices per quadrant, and linking it with the supplier selection process evaluation by means of game-theory. ...
Article
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La negociación con proveedores dominantes suelen conducir a situaciones de dependencia, donde el comprador se ve forzado a aceptar las condiciones dadas. Esto, que es común en la práctica industrial, requiere de nuevos enfoques que ayuden a maximizar la competencia. Específicamente, este artículo utiliza conceptos de la teoría de juegos en una selección de proveedores dentro del sector de la ingeniería de grúas de puertos marítimos. Nuestra investigación muestra que la literatura existente en la teoría de juegos aplicada a estos ámbitos es mayormente descriptiva, centrada en subastas y limitada en el diseño, aplicación e impacto en casos reales. Por ello, se presenta uno de los primeros casos de estudio que aplica los árboles del juego y la inducción hacia atrás (herramientas de la teoría de juegos) para el diseño y ejecución de una negociación real, incluyendo el cómo y porqué de las decisiones. Los resultados muestran que aplicar teoría de juegos incrementa las posibilidades de tener mejores resultados en negociaciones, al predecir los resultados y prescribir qué juego se debería diseñar para incrementar la competencia entre proveedores.Palabras clave: Compras; Teoría de juegos; negociación; selección de proveedores
... The strategic role of purchasing and supply management (PSM) has gained substantial interest in the literature (Tchokogué et al., 2017;van Weele and van Raaij, 2014). As the importance of suppliers for company-level competitiveness has grown in recognition, upstream supplier relationships have become an important vehicle for gaining downstream advantages (Dyer et al., 2018;Weigelt, 2013;Yan et al., 2017). ...
Article
For buying companies, supplier resource mobilisation is an essential process in gaining and sustaining preferential access to supplier resources. This editorial provides insights into the processes of supplier resource mobilisation and introduces three empirical studies on supplier resource mobilisation. We first introduce the supplier resource mobilisation cycle. This cycle may serve as a roadmap for purchasing and supply management (PSM) practitioners seeking to improve access to supplier resources. In addition, this article informs PSM scholars about the status of the supplier resource mobilisation literature and proposes avenues for future research. The cycle includes six stages: (1) becoming an attractive customer, (2) segmenting suppliers, (3) generating supplier satisfaction, (4) becoming a preferred customer, (5) engaging in supplier-oriented actions, and (6) integrating supplier resources. Finally, we introduce the articles in this issue that each examine a different stage of the supplier resource mobilisation process.
... There is a direct link between the SCM practices and the organizational performance, some studies emphasized on operational measures, while others stressed on financial measures [26]. The financial measures and non-financial measures in terms of customer satisfaction and cycle time are equally important, and there are no significant differences between them in identifying the performance of the procurement function [27]. Furthermore, [28] stated that supply chain strategy has a significant and positive relationship with the financial performance and with the marketing performance. ...
Article
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Abstract— Supply chain management plays a major role in industrial companies, with strengthen collaboration among their suppliers and customers. The main aims of his paper, is to examine the role of Supply Chain Management Capabilities- SCMC toward industrial companies performance in Yemen. Top and middle managers were asked to answer the questionnaire, which drawn from a geographical clustered sample. Thirty nine manufacturing were surveyed in five governorates. To examine the role of SCMC towards industrial companies hypothesis testing employed correlation. The findings showed a significant positive relationship at statistical significant level (α ≤0.05) between outside-in capabilities and inside-out capabilities, inside-out capabilities and companies’ market performance only, and spanning capabilities with both outside-in capabilities and company’s performance.
... There is a direct link between the SCM practices and the organizational performance, some studies emphasized on operational measures, while others stressed on financial measures [26]. The financial measures and non-financial measures in terms of customer satisfaction and cycle time are equally important, and there are no significant differences between them in identifying the performance of the procurement function [27]. Furthermore, [28] stated that supply chain strategy has a significant and positive relationship with the financial performance and with the marketing performance. ...
Article
Full-text available
Al-Rejal, H. M. A., Udin, Z. M., & Yusoff, R. Z. B. (2018). The role of supply chain management toward performance of manufacturing companies in Yemen. Int. J Sup. Chain. Mgt Vol, 7(6), 92.
... Several subsequent studies have suggested that SMI is a key enabler of effective PSM. For example, the capability to develop and sustain superior knowledge of markets and supply chains is an important means of increasing the strategic relevance of PSM (van Weele and van Raaij, 2014). It also supports firms in their efforts to meet customer demand and maintain their competitive advantage (Ellram et al., 2013). ...
Article
The capability to develop and sustain superior knowledge of markets and supply chains, or supply market intelligence (SMI), is an important element in increasing the strategic relevance of purchasing and supply management (PSM). This study draws on information processing theory (IPT) to shed light on how firms acquire SMI. In particular, the study aims to identify the drivers and mechanisms of information processing in SMI acquisition and to explore how the two constructs are related. Our findings emerged from an abductive multiple case study including 22 SMI tasks in eight case companies operating in various manufacturing industries. We find that the drivers of information processing needs in SMI acquisition are related either to uncertainty or equivocality. Uncertainty describes a situation in which decision-makers may be ignorant of a variable's value while equivocality describes a situation in which they may be ignorant of the variable's existence. We identify four structural mechanisms and three information technology mechanisms for information processing in the SMI context. We also find that equivocality seems to trump uncertainty in determining the use of the identified SMI acquisition mechanisms. In addition to elaborating IPT in the SMI context and exploring the theoretical foundations of SMI, we offer practitioners a framework for supporting the design of SMI practices in procurement organisations.
... A part of this investigation has been done as a complement to previous studies that assessed the effect of SC fit on performance (Wagner et al., 2012;Gligor, 2016Gligor, , 2017Luo and Yu, 2016;Sabri, 2019), contributing to the generalizability (external validity) of the previous findings, by assessing similar subjects under different conditions (Goldsby and Autry, 2011). Moreover, as stated by Goldsby and Autry (2011) and by van Weele and van Raaij (2014), replication of previous studies should be more frequent in SCM research as it helps to increase the validity, credibility and relevance of theory developed in the field. Additionally, Block and Kuckertz (2018) argued that replication studies, defined as "studies that put published empirical results to an additional empirical test" (p. ...
Article
Purpose – This paper investigates the effect of the fit between supply and demand uncertainty (SDU) and supply chain responsiveness (SCR) (SC fit) on business and innovation performance in Brazilian companies. Design/methodology/approach – The study presented an analysis carried out on an empirical study based on a sample of 150 manufacturing companies. Business and innovation performance of companies with different types of SC fit ( high–high and low–low fits) and misfit (positive and negative) are compared and discussed. Findings – The results indicated that SC fit had a positive effect on both business and innovation performance. Further analyses suggested that companies with SC fit present similar business performance, independent of the level of SDU that characterizes the environment where they compete, while companies in environments with higher levels of uncertainty tend to present superior innovation performance. Companies with positive and negative misfit present similar performance. Originality/value – An analysis of the literature showed that there is no consensus when it comes to the definitions and measurements of SC fit. The paper investigates the effects of SC fit on business and innovation performance, while previous empirical studies have mainly addressed its impact on financial performance. Moreover, this study compares the effects of two types of fit and two types of misfit and assesses SC fit in Brazilian manufacturing companies, analyzing the context of an under-researched reality.
... Supply chain management (SCM) is one of the industries that has been advanced and developed in recent years along with the marketing channels of logistics, purchasing and distribution sectors. Numerous advancements have been put into this industry (Lu et al., 2015;Weele & Raaij, 2014). It works as an interdisciplinary concept and continuously involved a network covering several companies from the process of suppliers to end-users. ...
Chapter
This research aims to ascertain the application of the quick response (QR) code technology as the marketing tools among third-party logistics (3PLs) companies in Malaysia. This study adopted a qualitative research approach by conducting an in-depth interview with five respondents who are experienced in 3PLs services. The supply chain management with the 7Ps marketing mix act was applied as the guiding principle. The findings revealed that the interaction between consumers and 3PLs companies made easy and swift by the enabling application of mobile technology related to QR code. QR code enables to support both 3PLs and logistics industry towards competitive advantage. Growth of the market share, profit-revenue and sales by utilizing the application of QR code with the linkage of social media is imperative to establish the company brand and reputation. This study has a significant implication for both 3PLs companies and academicians to further explore the practices and its application in a different organization setting.
... In order to guarantee chain of supplies management, it is necessary that there are professionals from involved areas (production, logistics, sales, among others) in addition to support areas (as, for example, information technology). Besides, emphasis has been given to the purchasing sector so that firms works in the improvement of its competitiveness (Weele & Raaij, 2014). ...
... Although the outsourcing/insourcing decision literature is extensive, few studies have addressed the pathways to pursue the next step after the decision to outsource production, which is to determine a capable manufacturer (Burke, Carrillo, & Vakharia, 2009;Weele & Raaij, 2014). Considering a different setting, the vendor selection literature focuses mainly on mechanism design to balance assessment capability and contract efficiency through developing auction models (e.g., Chen, Roundy, Zhang, & Janakiraman, 2005;Chen, Seshadri, & Zemel, 2008;Cui, 2017). ...
Article
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In this article, we introduce a game-theoretic model to examine the impact of outsourcing knowledge, as well as firm-and market-level factors, on a buyer's decision of whether to employ a supply chain intermediary or an agent to identify a manufacturer for her new product. The buyer faces two options: identify the manufacturer directly or explore outsourcing indirectly through an agent. In the case of direct outsourcing, the buyer evaluates, negotiates with, and identifies the manufacturers in-house, whereas, under indirect outsourcing, the agent takes over these activities in exchange for a commission based on the transaction value between the buyer and the manufacturer. The model introduced in this article captures the buyer-agent incentive misalignment. Unexpectedly, we find that although attractiveness of indirect outsourcing increases as the buyer's out-sourcing knowledge increases, it follows an inverse-U shape as the agent gains more outsourcing knowledge. We further demonstrate that the observability of the buyer's outsourcing knowledge is another key driver of the outsourcing-mode strategy. In addition , we show that the buyer's tendency to explore indirect outsourcing is greater if the sensitivity to the retail price or the commission rate is higher, or the base demand or cost of delayed time-to-market associated with the new product is lower. We extend our analysis to consider a contract form, whereby the agent's commission payment is driven † Corresponding author 1 2 Knowledge-Based View of an Intermediary in New Product Manufacturing Outsourcing by the expected savings generated for the buyer, and to consider the setting in which the buyer's outsourcing knowledge is private information.
... Reconciling these two opposing views, not least because extant empirical studies frequently struggle with differentiating varieties of formal governance practices and with specifying mechanisms through which these practices enable or inhibit supplier engagement and supply chain collaboration (Vanneste et al., 2014). 2 In addition, causal identification remains a problem due to the methodological predominance of cross-sectional designs that measure independent and dependent variables with a single survey, and case studies whose induced causal explanations are rarely tested in replication studies (Delmas & Aragon-Correa, 2016;Van Weele & Van Raaij, 2014). ...
Article
Formal, compliance-focused governance for supply chain sustainability initiatives has a mixed empirical track record. We build on classic research on bureaucracy to examine how “enabling” and “coercive” formalization at the buyer–supplier interface affect attitudes, an important precursor to behavioral engagement. We conduct a randomized field experiment with the supplier community of a South African insurance company to directly compare treatment effects of enabling and coercive interventions. We report and discuss the enabling intervention’s positive attitudinal effects and the moderation of these effects by supplier characteristics. Our findings also reveal some notable null effects, especially from the coercive intervention. We believe this work contributes to a more nuanced understanding of formal governance choices in supply chains and their impact on supplier engagement.
... Reconciling these two opposing views has proven challenging, not least because extant empirical studies frequently struggle with differentiating varieties of formal governance practices and with specifying mechanisms through which these practices enable or inhibit supplier engagement and supply chain collaboration 4 (Vanneste, Puranam, & Kretschmer, 2014). 2 In addition, causal identification remains a problem due to the methodological predominance of cross-sectional designs that measure independent and dependent variables with a single survey, and case studies whose induced causal explanations are rarely tested in replication studies (Delmas & Aragon-Correa, 2016;Van Weele & Van Raaij, 2014). ...
Article
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Formal, compliance-focused governance for supply chain sustainability initiatives has a mixed empirical track record. We build on classic research on bureaucracy to examine how 'enabling' and 'coercive' formalization at the buyer-supplier interface affect attitudes, an important precursor to behavioral engagement. We conduct a randomized field experiment with the supplier community of a South African insurance company to directly compare treatment effects of enabling and coercive interventions. We report and discuss the enabling intervention's positive attitudinal effects and the moderation of these effects by supplier characteristics. We also discuss some notable null-effects, especially from the coercive intervention. We believe this work contributes to a more nuanced understanding of formal governance choices in supply chains and their impact on supplier engagement. Acknowledgements: The authors are thankful to Federica DiStefano, and Clint Bartlett for their research support and insightful comments for early versions of the manuscript.
... Reconciling these two opposing views has proven challenging, not least because extant empirical studies frequently struggle with differentiating varieties of formal governance practices and with specifying mechanisms through which these practices enable or inhibit supplier engagement and supply chain collaboration 4 (Vanneste, Puranam, & Kretschmer, 2014). 2 In addition, causal identification remains a problem due to the methodological predominance of cross-sectional designs that measure independent and dependent variables with a single survey, and case studies whose induced causal explanations are rarely tested in replication studies (Delmas & Aragon-Correa, 2016;Van Weele & Van Raaij, 2014). ...
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Formal, compliance-focused governance for supply chain sustainability initiatives has a mixed empirical track record. We build on classic research on bureaucracy to examine how 'enabling' and 'coercive' formalization at the buyer-supplier interface affect attitudes, an important precursor to behavioral engagement. We conduct a randomized field experiment with the supplier community of a South African insurance company to directly compare treatment effects of enabling and coercive interventions. We report and discuss the enabling intervention's positive attitudinal effects and the moderation of these effects by supplier characteristics. We also discuss some notable null-effects, especially from the coercive intervention. We believe this work contributes to a more nuanced understanding of formal governance choices in supply chains and their impact on supplier engagement. Acknowledgements: The authors are thankful to Federica DiStefano, and Clint Bartlett for their research support and insightful comments for early versions of the manuscript.
... Finally, the quality of perceptual data is still a problem. Although key informants are distinguished as knowledgeable and can give representative and reliable reports (Phillips, 1981;Van Weele and Van Raaij, 2014), believing the effectiveness of single-source data is unreasonable (Ketokivi and Schroeder, 2004;Krause et al., 2018). The combination of subjective measures and objective measures for performance should also be considered in future research. ...
Article
Despite the importance of green supplier collaboration (GSC) for solving environmental concerns, how and under what conditions it affects firm performance is still unclear. Based on dual process theory, we identify two kinds of behaviors, namely explicit behaviors (i.e., information sharing and opportunistic behavior) and inherent behaviors (i.e., dependence on supplier and trust in supplier). According to resource dependence theory, we develop a dual process model, in which two explicit behaviors are hypothesized to mediate the GSC-performance link and two inherent behaviors are hypothesized to moderate the relationship between GSC and each of explicit behaviors. Using two-wave survey data collected from 206 manufacturing firms in China, we find that GSC positively influences both financial and environmental performance via increasing the level of information sharing. Although opportunistic behavior has a negative effect on environmental performance, the direct impact of GSC on it is insignificant. In addition, dependence on supplier positively moderates the relationship between GSC and opportunistic behavior, while trust in supplier positively moderates the relationship between GSC and information sharing, and negatively moderates the relationship between GSC and opportunistic behavior. This research provides initial support for the dual processes of how GSC influences firm performance from a behavioral perspective.
... Part of the paper is developed as a complement to previous studies that assessed the fit of product characteristics with SC strategies (Qi et al., 2009;Lo and Power, 2010;Wagner et al., 2012;Nakano, 2015) as well as their impact on financial and operational performance, contributing to the generalizability of the previous findings, while assessing the same subjects under different conditions (Goldsby and Autry, 2011). As stated by Goldsby and Autry (2011) and van Weele and van Raaij (2014), the replication and extension of previous studies should be more frequent in SCM research, as it helps to increase the validity, credibility and relevance of theory developed in the field. Sobh andPerry (2006, p. 1206) also discuss the issue of replication logic, highlighting that "replication logic should be used to explore the effects of context upon the underlying structures and mechanisms that are the core of the frameworks". ...
Article
Purpose – this paper investigates supply chain (SC) strategies, analyzing the adoption of lean, agile, leagile and traditional SC strategies with respect to product characteristics, environmental uncertainty, business performance and innovation performance. Design/methodology/approach – the paper presents an empirical analysis carried out on a sample of 329 companies. Cluster analysis was applied, based on lean and agile SC characteristics, in order to identify patterns among different SC strategies. One-way analysis of variance (ANOVA) of different constructs by types of SC clusters was conducted in order to test the research hypotheses. Findings – cluster analysis indicates that the companies studied adopt four types of SC strategies – lean, agile, leagile and traditional. The differences between the clusters are identified and discussed, highlighting that companies adopting a leagile SC strategy present the highest performance, while those that adopt a traditional SC present the lowest; companies adopting an agile SC compete in the most complex and dynamic environments, while companies with a lean SC present a clear predominance of functional rather than innovative products. Research limitations/implications – this paper provides empirical evidence of the antecedents and consequences of the adoption of different SC strategies. As a limitation, the results are based on a survey research with a limited sample size. Originality/value – based on the analysis of the relationship between constructs that have not been addressed previously, the paper adds to the knowledge regarding the role of SC strategies, as well as the antecedents and consequences of their adoption. The results may support managers in the difficult task of choosing the “right” SC strategy.
... A number of the previous reviews refer to specific business subdisciplines-namely, international business (Oesterle & Laudien, 2007), information systems (Moeini et al., 2019), and supply chain management (Lambert, 2019;Svanberg, 2020;van Weele & van Raaij, 2014). Contrastingly, the current review considers research and education activities without regard for any particular management subdiscipline, in line with some of the previous reviews that have approached this area with a more general unit of analysis such as 'business schools' (e.g., Pettigrew & Starkey, 2016) or 'management research' (e.g., De Frutos-Belizón et al., 2019). ...
Article
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The degree to which business schools are relevant and impactful for society has been disputed. Critics that engage in the so-called 'relevance problem' have argued that business schools are preoccupied with academic rigour at the expense of practical relevance, resulting in a lack of societal impact. This systematic literature review synthesizes the fragmented body of knowledge pertaining to the relevance and impact of business schools. Appreciating the contributions of both research and education, this review offers a holistic view that acknowledges the multidimensional nature of business schools. Based on an analysis of 266 journal articles, we present the four main literature streams in this domain. We find limited evidence of cross-fertilisation between discussions of research and education. However, by acknowledging the contribution of applying a mul-tidimensional lens to the study of business schools, we develop a holistic thematic framework that provides theoretical directions for the future. Using this, we demonstrate four avenues for advancing the business school literature. First, we emphasise the potential of an institutional logics perspective to viewing business schools. Second, we offer a novel proposal for understanding the bridge between research and education. Third, we emphasise the application of a value co-creation theoretical lens when considering how business schools engage with stakeholders in research and education. Finally, we propose an all-encompassing stakeholder-centric definition of relevant and impactful knowledge and advocate for this inclusive definition to conceptually bridge the fragmented discussions of research and education.
... Supply chain managers are under considerable pressure to contribute more in changing business environments (Weele and Raaij 2014;Bals, Laine, and Mugurusi 2017). Among the biggest categorical changes that create pressure on supply chain and purchasing management in the 21st century are the increase in services, service integration and digitalization (Lusch 2011). ...
Article
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This study examines the connection between relational mechanisms and performance measurement. The objective of the paper is to uncover the essential types of relational mechanisms and what factors determine the relational mechanisms of performance measurement in digital service supply chains. The authors conducted a multi-case study at companies that provide digital services. Relational mechanisms refer to mechanisms that initiate and enhance social interactions in performance measurement. The results show that trust between supply chain actors and improvement of knowledge through information sharing are the essential types of relational mechanisms of performance measurement in the digital service supply chain. These relational mechanisms enable performance measurement by engaging actors in providing measurement information. Personalization of services and the criticality of the service, but also compensation, and suppliers’ ability to sell were highlighted to determine the relational mechanisms adopted.
... The outcome also supports the TOC by revealing that requisition review risk is among the notable limiting factors that are inevitable in procurement processes and their presence could affect procurement performance negatively. This finding has been supported by previous empirical studies (Van Weele and Van Raaij, 2014;Torabi et al., 2018;Anane et al., 2019) which concluded that exposure to procurement process risk leads to project failure and performance issues arising from poor product specifications, poor supplier selection and procurement delays. ...
Article
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Purpose Procurement risks are inevitable in manufacturing procurement process; a situation that could undermine the performance of manufacturing firms if not properly managed. Yet, with procurement accounting of about 14–19% of developing countries gross domestic product, the effects of procurement process risk on performance remain scarce in manufacturing firms in developing countries. Therefore, the paper aims to investigate the effect of procurement process risk on procurement performance of manufacturing firms. Design/methodology/approach This paper employs the positivism paradigm, quantitative approach and explanatory research design. It analyses primary data obtained from manufacturing firms via structured questionnaires and uses the partial least square-structural equation modelling technique to establish the effect of individual procurement process risk on procurement performance. Findings In this paper, five out of the six procurement process risks studied were found to be undermining procurement performance of manufacturing firms significantly. However, the risk threshold effect on the performance differs. Research limitations/implications Although this research is geographically/sector bias, several insightful managerial implications can be drawn to manage procurement process risk in manufacturing settings irrespective of the area of operation. The results of this research imply that manufacturing firms' procurement process is risk prone and the effect of risk surrounding each procurement process on procurement performance differs. Hence, the need to identify and analyse the risks surrounding each procurement process before making managerial decision to spend firms limited resources in response to the individual risk to improve procurement performance in the manufacturing sector. Originality/value This paper is the first to provide existing and future procuring practitioners/firms with in-depth empirical evidence of the effect of the procurement process risks on procurement performance in manufacturing firms operating in developing economies.
... Today, purchasing departments are accountable for both efficiency and effectiveness (Tate et al. 2016). However, achieving measurable cost saving goals continues to be the top priority for purchasing every year (Dumond 1991;Van Weele and Van Raaij 2014;Deloitte 2019, Sch€ utz et al., 2020. ...
... Today, purchasing departments are accountable for both efficiency and effectiveness (Tate et al. 2016). However, achieving measurable cost saving goals continues to be the top priority for purchasing every year (Dumond 1991;Van Weele and Van Raaij 2014;Deloitte 2019, Sch€ utz et al., 2020. ...
Article
It is widely recognized that one of the purchasing function’s primary objectives is to generate cost saving through cost reduction and cost avoidance as it works with the supply base to provide high quality materials and services on a timely basis. This research develops mid‐range theory by incorporating empirical evidence and the tenets of agency theory to the specific domain of a purchasing agent working within an organization. This domain differs from other agency relationships because there are multiple principals with misaligned goals within the organization that influence how purchasing cost saving are counted and thus influence the impact of those savings on purchasing performance. Agency theory helps articulate propositions in this context by providing insight into how purchasing agents perform their organizational duties related to cost saving and avoiding cost increases. The focus is specifically on examining how the challenging area of cost avoidance savings are tracked, measured, and recognized. Case studies from eight organizations reveal that there is significant prospect for suboptimal performance due to the design of reward and measurement systems and the reluctance of purchasing to challenge these systems. However, this can be addressed through an investment in robust systems supported by top management and finance.
... Industries rely heavily on outsourcing and supplier inputs making the function managing these inputs crucial (Weele and Raaij, 2014). Last decade saw an increasing use of ICT to facilitate procurement activities with the development of 'e-procurement' systems. ...
... As there is a tendency of the procurement function to move towards a strategic role within organizations (Basheka, 2008;Gadde and Håkansson, 1994;Guarnieri and Gomes, 2019;Van Weele and Van Raaij, 2014). Public procuring entities must ensure that the mindsets of procurement practitioners are directed towards the strategic perspective of the procurement function. ...
Article
Purpose The significance of the public procurement function is on the survival and development of procuring entities and that of a nation at large. This study aims to focus on examining the influence of procurement planning on the effectiveness of public procurement, experience from selected public procuring entities in Dodoma city, Tanzania. Design/methodology/approach A cross-sectional design was adopted from which data were collected from 146 respondents who were purposively chosen from several public procuring entities located at Dodoma city in the United Republic of Tanzania by using a survey structured questionnaire and analysed through a binary logistic regression model. Findings Findings revealed that procurement planning as a strategic function significantly influences the effectiveness of public procurement. The binary logistic regression model included the implementation of prepared procurement plans ( p = 0.039), the involvement of users as stakeholders and important institutional actors in public procurement ( p = 0.033), compliance to procurement laws and regulations when planning ( p = 0.016) and adequacy of budget ( p = 0.042) as predictors of procurement planning were tested to be significantly related to the effectiveness of public procurement. It was concluded that public procuring entities can achieve public procurement effectiveness through procurement planning. Social implications The implications and policy recommendations of the findings of this study would be useful to procurement practitioners mostly in public procuring entities. Originality/value This study contributes to adding knowledge to the existing body of knowledge on procurement planning as an imperative activity in public procurement in Tanzania.
... Industries rely heavily on outsourcing and supplier inputs making the function managing these inputs crucial (Weele and Raaij, 2014). Last decade saw an increasing use of ICT to facilitate procurement activities with the development of 'e-procurement' systems. ...
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Purpose Procurement is a crucial part of supply chain management, consistently becoming a strategic vantage point in global competition. The industry 4.0 paradigm is transforming supply chains to smarter systems, giving rise to the concept of procurement 4.0. A systematic framework to transform in current scenario is crucial. Design/methodology/approach This study brings together these current researches to propose a redesigned procurement process by combining several technologies. A BPR approach is taken to present the new process and its merits are discussed. Findings A re-designed procurement framework is proposed. Radical improvements of cost, cycle time, human effort, degree of automation, traceability, information availability and uncertainty are achievable with the proposed framework. Practical implications The proposed re-engineered process addresses the visualization barrier for managers. The proposed framework is grounded on BPR which provides a generic ground for developing redesign exercise along with the visualization of new process. Originality/value There is literature discussing implementation, impact and advantages of individual and combination of technologies on procurement process but lacks visualization of the transformed process combining these technologies.
... Robolledo and Jobin (2013) mentioned that sourcing and production require strategic adaptation as they stand for the core of supply chain management. Similarly, this impacts all sub-activities of purchasing such as identification of products specification, supplier assessment, contract agreement and negotiations (Van Weele and Van Raaij, 2014). Considering the context of this work, the structure of conventional sourcing approach in terms of supplier selection needs to be aligned with the era of industry 4.0 efficiently. ...
Article
Purpose In the last decade, sustainable sourcing decision has gained tremendous attention due to the increasing governmental restrictions and public attentiveness. This decision involves diverse sets of classical and environmental parameters, which are originated from a complex, ambiguous and inconsistent decision-making environment. Arguably, supply chain management is fronting the next industrial revolution, which is named industry 4.0, due to the fast advance of digitalization. Considering the latter's rapid growth, current supplier selection models are, or it will, inefficient to assign the level of priority of each supplier among a set of suppliers, and therefore, more advanced models merging “recipes” of sustainability and industry 4.0 ingenuities are required. Yet, no research work found towards a digitalized, along with sustainability's target, sourcing. Design/methodology/approach A new framework for green and digitalized sourcing is developed. Thereafter, a hybrid decision-making approach is developed that utilizes (1) fuzzy preference programming (FPP) to decide the importance of one supplier attribute over another and (2) multi-objective optimization on the basis of ratio analysis (MOORA) to prioritize suppliers based on fuzzy performance rating. The proposed approach is implemented in consultation with the procurement department of a food processing company willing to develop a greener supply chain in the era of industry 4.0. Findings The proposed approach is capable to recognize the most important evaluation criteria, explain the ambiguity of experts' expressions and having better discrimination power to assess suppliers on operational efficiency and environmental and digitalization criteria, and henceforth enhances the quality of the sourcing process. Sensitivity analysis is performed to help managers for model approval. Moreover, this work presents the first attempt towards green and digitalized supplier selection. It paves the way towards further development in the modelling and optimization of sourcing in the era of industry 4.0. Originality/value Competitive supply chain management needs efficient purchasing and production activities since they represent its core, and this arises the necessity for a strategic adaptation and alignment with the requirement of industry 4.0. The latter implies alterations in the avenue firms operate and shape their activities and processes. In the context of supplier selection, this would involve the way supplier assessed and selected. This work is originally initiated based on a joint collaboration with a food company. A hybrid decision-making approach is proposed to evaluate and select suppliers considering operational efficiency, environmental criteria and digitalization initiatives towards digitalized and green supplier selection (DG-SS). To this end, supply chain management in the era of sustainability and digitalization are discussed.
... Also, Sonia et al. (2014) found that working capital management (such as cash management, accounts payable management, accounts receivable management) has a positive impact on corporate financial performance, and payment management plays a significant role in adjusting corporate cash flow and improving the benefits of working capital management. Otherwise, a scientific procurement management system will significantly improve the efficiency and effectiveness of enterprise operations (Weele and Raaij 2014). If the parent company continues to expand, establishing an effective procurement management system will help achieve cost savings and resource optimization, and enhance subsidiaries' continued competitiveness (Johnsen 2018). ...
Article
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In a highly intertwined and connected business environment, globalized layout planning can be an effective way for enterprises to expand their market. Nevertheless, conflicts and contradictions always exist between parent and subsidiary enterprises; if they are in different countries, these conflicts can become especially problematic. Internal control systems for subsidiary supervision and management seem to be particularly important when aiming to align subsidiaries’ decisions with parent enterprises’ strategic intentions, and such systems undoubtedly involve numerous criteria/dimensions. An effective tool is urgently needed to clarify the relevant issues and discern the cause-and-effect relationships among them in these conflicts. Traditional statistical approaches cannot fully explain these situations due to the complexity and invisibility of the criteria/dimensions; thus, the fuzzy rough set theory (FRST), with its superior data exploration ability and impreciseness tolerance, can be considered to adequately address the complexities. Motivated by efficient integrated systems, aggregating multiple dissimilar systems’ outputs and converting them into a consensus result can be useful for realizing outstanding performances. Based on this concept, we insert selected criteria/dimensions via FRST into DEMATEL to identify and analyze the dependency and feedback relations among variables of parent/subsidiary gaps and conflicts. The results present the improvement priorities based on their magnitude of impact, in the following order: organizational control structure, business and financial information system management, major financial management, business strategy management, construction of a management system, and integrated audit management. Managers can consider the potential implications herein when formulating future targeted policies to improve subsidiary supervision and strengthen overall corporate governance.
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Purpose This study aims to examine the relationships between power, relationship commitment and customer integration by replicating and extending Zhao et al. (2008) in China and the USA. Design/methodology/approach This study collects data from 210 manufacturers in China and 202 manufacturers in the USA. In this study, structural equation modelling is used to analyse the data. Findings This study finds that normative relationship commitment is positively associated with customer integration and expert and referent power are positively associated with normative relationship commitment in China and the USA. Reward and coercive power are positively associated with instrumental relationship commitment in China, whereas referent power is negatively associated. Referent, legal legitimate and reward power are positively associated with instrumental relationship commitment in the USA, whereas expert and legitimate power are negatively associated. Originality/value This study provides empirical evidence on the distinct impacts of different bases of mediated and non-mediated power in China and the USA, contributing to the development of the power-relationship commitment theory. The findings also provide insights into where and when the theory applies. The results can provide guidelines for managers to adjust the use of power to improve relationship commitment and customer integration in China and the USA.
Article
Purpose The purpose of this paper is to reflect on interactive research as a means to create relevant knowledge in the domain of operations management in general and specifically in the context of production start-up. Design/methodology/approach The reflection on the use of interactive research in production start-ups was based on a study of two completed interactive research projects. The lens for reflection was a framework including context, quality of relationship, quality of the research process itself and outcomes. Findings The context was industrial manufacturing companies in Sweden, with different kind of challenges related to production start-ups, such as collaboration between involved functions and suppliers, competence development and work routines. Indicators of the quality of relationship between researchers and practitioners were initiated development activities and new collaboration between functions, within the company, between companies and in supply chains. The reflection of the quality of the research process itself was based on an interactive research process including four iterative steps with regular follow-ups allowing joint practitioner and researcher reflection on the progress. Identified outcomes included increased awareness and competence on how to deal with production start-ups, improvements of communication, work procedures and structures, better use of competences, increased cross-functional dialogue and cultural understanding. Practical implications Implications for practitioners are the possibilities for knowledge creation through interactive collaboration in research projects enabling exchange between researchers from complementary fields and other companies dealing with production start-ups. Originality/value The interactive research approach enables joint knowledge creation in a fast-changing context such as production start-ups as well as value-adding results both for practitioners in industry and for academia.
Chapter
This study aims to examine how ethics and buyer-supplier relationship can contribute to enhanced innovative green procurement performance in the South African context. The hypotheses of this study were tested based on the data collected from manufacturing companies. Data collection involved convenience sampling and survey methodology in a research setting using procurement managers as subjects. The construct measures were based on existing measures and previous research studies. The reliability and validity of items were tested using exploratory factor analysis. Further the output of exploratory factor analysis was used as an input in the regression analysis using SPSS 20.0 version. The findings suggest that that supplier subtle practices; buyer-supplier bonding; continuous education and training and creativity and innovation are found to be strong determinants of innovative green procurement performance. The present study is unique in terms of scope and its contribution to both buyer-supplier relationship theory and practice.
Conference Paper
As the pandemic crisis has accelerated change and innovation in organizations, buyers appear to have a role to play in supporting it, in that they have the competencies to mobilize external resources, namely suppliers. This study focuses on process innovations because they often have a significant impact on the product in terms of lead time, quality, and cost-significant advantages in times of crisis. However, they are very little studied in Purchasing and Supply Management (PSM) research. So, using the competency-based view, this study aims at identifying the competencies needed by buyers to support process innovations. Based on 11 semi-structured interviews with buyers, the results identify that the technical competencies are those that best support this type of innovation.
Purpose Rigor and practical relevance are the foundations for logistics and supply chain management (LSCM) as an applied discipline. Whereas there are well-founded criteria for establishing methodological rigor, researchers must provide their own credible logic as to why their papers can influence practice. Accordingly, this paper aims to develop guidelines for establishing practical relevance in research papers. Design/methodology/approach A literature review of LSCM, marketing, operations management and management journals forms the foundation for these guidelines. Findings Relevance criteria are identified; research should be problem-driven, timely and important, and findings should be implementable, nonobvious, novel and not too costly. Measures for researchers demonstrating the fulfillment of these criteria are identified as practitioner input, gray literature, funding, practitioner involvement and feedback. Researchers should also clearly articulate both problem relevance and the relevance of their findings. Research limitations/implications A lack of practical relevance is among the reasons for the rejection of papers by LSCM journals, but researchers can overcome this obstacle using these guidelines. Practical implications At a metalevel, this paper contributes to research with greater practical relevance. Originality/value Practical relevance is emphasized in the editorials of LSCM journals but has not yet been fully conceptualized from the authors' perspective.
Article
While most of information sharing literature in supply chain (SC) management mainly deals with the analysis and quantification of information sharing to upstream actors by downstream actors, this paper quantitatively deals with the two-way information sharing. The setup of a dyadic SC is considered. Informed by complexity, principal-agent and information sharing theory a hybrid simulation model combining dynamic programming and agent-based modeling is built to measure and analyze the effects of information sharing scenarios (none / one-sided / two-sided) on the profit in the entire SC as well as of the individual participating actors. The results show that information exchange is valued differently depending on the actors‘ point of view in the SC. For both the entire SC and the manufacturer, the highest profits can be expected from two-way information exchange, while the supplier maximizes its profits when solely sharing upstream information. We prove that due to higher expected profits, information sharing can enable companies to achieve higher performance in the SC. Additionally, we show that different power structures, which are reflected by transfer pricing between the actors, do not result in any change in information sharing preferences. Building on the study's results theoretical and practical implications are derived.
Chapter
The purpose of this chapter is to explore the role of trust or confidence through the managerial lens. The chapter aims to acquire empirical evidence regarding the importance of factors that play a role in fostering trust during procurement decision making exemplified through a New Zealand-owned company, ContainerCo. This exploratory study scrutinises trust as perceived by SME managers in the supply chain of logistics and procurement in New Zealand. It uses the repertory grid analysis and is based on two interviews conducted through the repertory grid technique, a semi-structured method. Although different in every company and country, trust plays a major role during the selection of suppliers. Factors such as reliability and value are regarded as the most important ones for choosing the right supplier in the case of ContainerCo.
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Drawing on prior research, the value of scenario planning as a methodology for future research on the future of purchasing and supply management (PSM) is explored. Using three criteria of research quality – rigour, originality and significance – it is shown how developing scenarios and analysing their implications present new, important research opportunities for PSM academics, practitioners, and leaders of the profession. Researching the future of PSM supports the identification of uncertainties and anticipates change across many units and levels of analysis of interest to PSM scholars and practitioners, such as the profession/discipline, markets/sectors, or organizations. Scenarios are particularly effective for: considering how the complex interaction of macro-environmental factors affects the PSM context; avoiding incremental thinking; surfacing assumptions and revealing significant blind spots. PSM research using scenarios aligns with Corley and Gioia’s (2011) call for prescience-oriented research in which academics aim for more impactful research, enhancing sense-giving potential and theoretical relevance to practice to better perform their adaptive role in society.
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There has been a growing interest in the application of game-theory to enhance the impact of supplier selection processes, but existing applications have been focused on commodity products. Therefore, scholars have recently called for further research into the use of game-theory to develop supplier selection processes for more complex products. The aim of this paper is to contribute by discussing the design and implementation of a novel supplier selection process based on game-theory through an empirical study of a construction project for an automotive company. The novelty of this research stems from the application of game-theory to design and implement a two-phase supplier selection process, combining a modified Japanese-auction with a structured bargaining process, and evaluating its impact in the context of complex items. Findings suggest that two-phase processes can enhance the effectiveness of the supplier selection by increasing competition and generating better predictions of the outcomes from the negotiation.
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Purchasing and supply management (PSM) plays a pivotal role in increasing overall competitiveness as buyers interact with innovative suppliers and internal teams. The competence-based view encourages buyers to specialise in a few core competencies, but less is known about the range of competencies needed for innovation. Thus, this article aims to understand the individual competencies that PSM professionals need to bring added value to innovation. To address this gap, our research is first based on the findings of the state of the art. Then, mixed-methods research is conducted. It consists of exploratory analysis based on five in-depth case studies including 23 interviews complemented with an extended survey of 138 PSM professionals highly experienced in innovation. These professionals rated the importance of 31 competencies, out of which 18 were revealed thanks to the qualitative phase. The results of the second phase highlighted and expanded some competencies known and shown new ones. ARTICLE HISTORY
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In the transition towards a circular economy, purchasers play a critical role as gatekeepers to the reuse of circular products in organizational processes. However, there is a need for research on the individual-level determinants of circular purchasing. Integrating the Theory of Planned Behavior, and the literature on organizational citizenship behavior towards the environment and intrapreneurship, we propose that the intention to act pro-environmentally, as expressed by organizational citizenship behavior towards the environment, is critical to circular purchasing. Moreover, we argue that intrapreneurship mediates this association, as intrapreneurs proactively make the effort and take risks in the process of creating new business opportunities. Using a survey among 124 Dutch and Belgian purchasers, this study shows that organizational citizenship behavior towards the environment is positively related to intrapreneurship. Contrary to what we hypothesized, intrapreneurship does not mediate the association between organizational citizenship behavior towards the environment and circular purchasing. Furthermore, purchasers in high-level hierarchical positions showed a stronger positive relationship between organizational citizenship behavior towards the environment and circular purchasing compared to purchasers in low-level hierarchical positions.
Article
Purpose The study develops a structure for procurement digitalisation by identifying its context drivers, technology interventions and performance-inducing mechanisms and exploring the linkages between these variables. Design/methodology/approach The study draws on rich interview and workshop data on 48 digital intervention projects, as reflected by mental models of managers from 12 case organisations in manufacturing, retail and service sectors. Supported by an a priori structure, the study employs an abductive cross-case analysis approach. Findings Results suggest several categories within the elements of context, intervention and mechanism to structure procurement digitalisation and the linkages between them. Seven propositions that reflect digitalisation strategy options in procurement are developed regarding the linkages. Internal complexity dominantly drives procurement digitalisation, motivating communication support and process structuring interventions, which in turn aim at procurement coordination and control as well as process improvement. External coercive pressure and external dynamism also drive interventions for information processing and decision aiding, which appear to be linked with supply market knowledge, strategic alignment and supplier capability assessment. Therefore, an internal–external dichotomy is observed as the main thrust of procurement digitalisation. Practical implications The study supports decision makers in developing digitalisation strategy options for different procurement contexts. The results also raise awareness of a possible bias in existing strategies for procurement digitalisation. Originality/value A novel forward-looking approach is employed to enable the design and construction of systems that do not yet exist by focusing on the mental models of managers in a systematic way.
Article
Complex and big data analytics attract growing interest in procurement strategies due to the possibility of decreasing complexity, lower costs, support the assertive decision-making process, and avoid fraud. This paper aims to exploit the role of organizational alignment and people’s behavior on big data initiatives in procurement. Through a survey, the results suggest that to succeed, organization and procurement strategies must be aligned and the key driver to advance is cost reduction and the willingness to use new technologies. Although behaviors are relevant in management processes, the buyer’s current behaviors do not significantly impact on the deployment of big data strategies.
Chapter
This chapter describes how the gender relations that are present in the globalization process does not reflect the neutral practice presented in the literature, but instead represent a gendered phenomenon that promotes new arrangements of inequalities that impact supply chain management. For decades, gender inequity in supply chains was a “hidden” problem in several sectors, but in the early twenty-first century it is an overt challenge for supply chain management. Gender inequity exists in supply chains when there is low participation of women-owned businesses in supply, a clear wage inequity along the supply chain, and the identification of modern slavery or forced labor related to gender in any tier of a supply chain. A future agenda for gender issues in supply chains should address a range of issues, from the increase in the number of women-owned suppliers and its impacts, to equalization of income among genders throughout supply chains, to complete eradication of modern slavery in local and global supply chains.
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The literature on supplier integration’s (SI) impact on firm performance is intertwined with mixed findings in terms of definitional differences, study context, specific integration components, and the types of relationships examined. This study contributes to the supplier integration and firm performance (SI-FP) literature by investigating how and when supplier integration influences firm performance. Drawing on the relational view, the resource-based view, and the Dynamics Capability theories, we suggest that improvements in firm performance from the supplier integration perspective are dependent on gains in operational capabilities. We test this dependency with survey data from firms in Ghana, a developing economy. The results show positive significant relationships between supplier integration and competitive operational capabilities and between supplier integration and firm performance. Our results highlight the importance for managers in developing economies and elsewhere to improve their firms’ operational capabilities and competitiveness by investing in supplier integration. We also discuss implications of these findings for research.
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Aim/Purpose: Use of the term “rigor” is ubiquitous in the research community. But do we actually know what it means, and how it applies to transdisciplinary research? Background: Too often, rigor is presumed to mean following an established research protocol scrupulously. Unfortunately, that frequently leads to research with little or no impact. Methodology: We identify a sample of 62 articles with “rigor” in the title and analyze their content in order to capture the range of perspectives on rigor. We then analyze how these findings might apply to informing science. Contribution: This paper offers an approach to defining rigor that is theory based and appropriate for transdisciplinary research. Findings: Rigor definitions tend to fall into one of two categories: criteria-based and compliance-based. Which is appropriate depends on the research context. Even more variation was found with respect to relevance, which is often used as a catch-all for research characteristics that aren’t associated with rigor. Recommendations for Practitioners: Recognize that when researchers are referring to rigor and relevance, they of-ten mean these to apply to other researchers rather than to practice. When funding research, it is important to understand who the rigor and relevance are directed towards. Recommendations for Researchers: When using the term “rigor”, think carefully about which meaning is intended and be transparent about that meaning in your writing. Impact on Society: A great deal of public money is invested in achieving research rigor. Society should be aware of what it is buying with that funding. Future Research: Developing a better understanding of research fitness and the factors that contribute to it.
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