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This paper seeks to instigate a new area of research in the Early Purchasing Involvement (EPI) literature around the question: How should a Purchasing function evolve in order to identify and capture innovation in the supplier market? Particularly, we attempt to characterise the specificities of the Innovation-Purchasing function, an emerging function acting in the fuzzy-front-end of projects. The contribution of this paper is a reification of the role of this function in an Open Innovation context, through the description of Early Purchasing Involvement in the Innovation (EPI2) agenda. For that, we collected data through an internal benchmarking study within a multinational/multidivisional firm of the automotive sector. Our study reveals similarities and differences between the observed practices of what we call EPI2 and the more classical EPI activities in a New Product Development (NPD) context. This study provides a model that can help practitioners and raises some propositions to test in new research.
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... Although the purchasing function often has the most interaction with potential suppliers in the supplier selection process, R&D has been suggested to, at times, be the primary function responsible for approaching and selecting suppliers in the cases in which suppliers bring new technology (Ragatz et al., 2002). However, a recent study, found that firms that involve purchasing early in NPD sourcing processes are likely to have higher and more efficient supplier involvement than those that rely purely on engineering personnel for the supplier integration (Schiele et al., 2021). From a supplier's perspective, this can be explained by sales personnel wishes to avoid interacting with purchasers for as long as possible to keep room for innovation (Kurpjuweit et al., 2018). ...
... Purchasing has a key role in the automotive industry's innovation processes, being responsible for identifying ideas and presenting these internally at the firm, and having a cost focus as well as identifying new suppliers (Homfeldt et al., 2017). Purchasing's activities in NPD in this industry revolve around finding new technologies and suppliers, communicating guidelines for supplier involvement, and motivating and communicating with internal actors such as R&D (Servajean-Hilst and Calvi, 2018). (Goldberg and Schiele, 2020) point to the need for purchasing to change towards more relational aspects in this context, such as moving from focusing on price negotiations towards joint cost calculations with suppliers. ...
... The findings of this study add to the debate on integration or isolation of functions in supplier relationships (e.g. Brattström and Richtnér, 2014;Melander and Lakemond, 2015;Schiele et al., 2021), by showing that during supplier assessment, separation of the functions can contribute to better information sharing by the supplier, but during negotiations, internal integration of functions is necessary for a unified front. These findings add to the previous understanding of how cross-functional teams maintain alignment, integration, but also autonomy and separation of goals and drives (a discussion raised by e.g. ...
Article
Based on an in-depth case study of an automotive manufacturer sourcing parts for high technology projects, this study investigates the intentions and structure of socialization within and between firms during the supplier selection process in technologically uncertain sourcing situations. Here, we aim to answer the question of how socialization can hedge against the high levels of uncertainty for manufacturers selecting suppliers of high technology resources. The case represents a major automotive manufacturer in Northern Europe, and is based on 38 semi-structured interviews with representatives of the different functions involved in the sourcing for the new development projects. Our data suggest that internal and external socialization during the supplier selection process can improve internal alignment and problem solving, and external familiarity towards the sourcing task. In this context, socialization took place on functional, cross-functional, and (inter)corporate levels, with higher functional autonomy during the assessment, and higher cross-functional integration during negotiations and decision making, adding to the debate on whether functions should be integrated or separated.
... For our sampling strategy, we observed that the purchasing department in the pilot company had created a structural separation into a purchasing unit involved at early stages of the NPD process and a purchasing unit involved at later stages of the NPD process. This structural separation of the purchasing department involvement in NPD projects has been documented in previous studies (Schiele, 2010;Servajean-Hilst & Calvi, 2018). Firms with such purchasing departments were not our ideal choice for two reasons. ...
... Recent studies have shown that a company's purchasing department is increasingly involved in the early stages of the NPD process (Luzzini et al., 2015;Mikkelsen & Johnsen, 2019;Picaud-Bello et al., 2019;Servajean-Hilst & Calvi, 2018), but little is known about the timing or the moment of that department's involvement in NPD and how this contributes to the absorption of supplier knowledge for innovation. Our findings from the Anémos NPD cases suggest that the timing of a purchasing department's involvement in NPD may have an important impact on the absorption of supplier knowledge for innovation. ...
... A few recent studies have argued for the importance of early purchasing involvement in NPD (Mikkelsen & Johnsen, 2019;Picaud-Bello et al., 2019;Servajean-Hilst & Calvi, 2018). However, there is little clarity regarding the timing of purchasing involvement and the implications of early purchasing involvement. ...
Article
In this paper, we explore the role of purchasing involvement in facilitating the absorption of supplier knowledge into a firm's new product development (NPD) projects. Extant research indicates that absorbing new supplier knowledge can enhance a firm's NPD performance. Despite previous studies on purchasing involvement, little empirical research has examined the role purchasing plays in absorbing new supplier knowledge. Adopting an absorptive capacity perspective, we report the findings from an embedded case study of four NPD projects within the context of a single firm. This firm has implemented purchasing involvement practices at the early stages of the NPD process to respond to changes in the industry's technological and environmental regulations. We analyse specific purchasing practices that can facilitate the absorption of supplier knowledge into the NPD projects, as well as the benefits and the challenges associated with the implementation of these practices. We find that the purchasing department is involved in different early stages of the NPD process, which may have different effects on the absorption of supplier knowledge across the absorptive capacity processes: exploration, assimilation and exploitation. Our findings also reveal that purchasing involvement may facilitate a firm's absorptive capacity as well as its connective capacity by accessing—not acquiring—supplier knowledge. We propose a conceptual framework that can facilitate the connection and absorption of supplier knowledge for NPD projects. Managerial implications are provided to encourage firms to deploy purchasing involvement practices early in their NPD projects when engaging in absorbing new supplier knowledge.
... Fondée sur deux études de cas d'entreprises où ces pratiques se sont développées, cette recherche 1 montre le rôle central des communautés et paysages de pratique dans la construction identitaire de ces innovateurs. L es nouvelles pratiques d'innovation au sein des entreprises, comme l'open innovation ou l'intrapreneuriat par exemple, conduisent à la création de nouvelles fonctions portées par des acteurs comme les coachs des intrapreneurs, qui les aident à incuber leur projet, ou les acheteurs-innovation (Servajean-Hilst et Calvi, 2018 ;Ben Mahmoud-Jouini et al., 2019). Nous nous focalisons dans cet article sur ces derniers cas. ...
... L'intérêt porté aux AI répond à deux motivations : d'abord, le recours de plus en plus important des entreprises à l'open innovation pour tirer parti de capacités d'innovation situées à l'extérieur de l'entreprise, soulève la question des acteurs en charge de la gestion de telles relations ; ensuite, la nécessité de faire interagir assez tôt dans les projets d'innovation des métiers distincts tels que la R&D, les achats et la supply-chain. Les AI se distinguent ainsi de deux autres rôles bien identifiés dans la fonction achat : les acheteurs-programme impliqués dans des projets de co-développement (Calvi, 2000 ;Servajean-Hilst et Calvi, 2018) et les acheteurs-séries en charge de l'optimisation de l'approvisionnement pour les produits industrialisés. En effet, les AI interviennent en amont des projets de co-développement avec les fournisseurs. ...
... Enfin, l'AI assume un rôle d'intermédiaire d'open innovation en jouant le rôle d'interface entre l'externe et l'interne, en étant le point de contact entre les acteurs de l'organisation et l'écosystème externe. Par son rôle de prospection auprès de l'externe puis de connexion interne/externe, l'AI facilite la reconnaissance puis l'appropriation des connaissances externes par l'interne ; il contribue à la capacité d'absorption de l'organisation (Cohen et Levinthal, 1990 ;Servajean-Hilst et Calvi, 2018). Il a un rôle de coordination et de construction de la relation et pas seulement de mise en relation (Ter Wal et al., 2017). ...
Article
Dans un environnement où l’innovation est clé pour la compétitivité, de nouvelles fonctions ayant pour objet de la promouvoir apparaissent dans les entreprises, comme par exemple les acheteurs-innovation en collaboration avec les partenaires externes, en charge de la veille et de la mise en œuvre de projets innovants. Comment ces managers hybrides construisent-ils leur identité professionnelle ? Fondée sur deux études de cas d’entreprises où ces pratiques se sont développées, cette recherche montre le rôle central des communautés et paysages de pratique dans la construction identitaire de ces innovateurs.
... Existing research in innovation management shows that to discontinuous innovation requires the development of new capabilities within the firm and outside with other firms such as "non-linear, highly explorative and experimental organizational processes, involving probing and learning rather than targeting and developing" (Bessant et al., 2005;Lynn et al., 1996;Phillips et al., 2006b). Discontinuous innovation creates several new challenges for purchasing in relation to searching for supplier innovation and to sourcing new technologies that may previously have fallen under the domain of research and development (R&D) management (Cousins et al., 2011;Luzzini et al., 2015;Mikkelsen and Johnsen, 2019;Schiele, 2010;Servajean-Hilst and Calvi, 2018). ...
... Our findings extend prior research on purchasing involvement in NPD literature (Luzzini et al., 2015;Melander and Lakemond, 2014;Mikkelsen and Johnsen, 2019;Schiele, 2010;Servajean-Hilst and Calvi, 2018;Wynstra et al., 2003) by offering empirical evidence on how purchasing managers may adapt existing sourcing and supplier relationship management capabilities to cope with discontinuous innovation challenges. We develop two propositions to guide future research into a dynamic capability perspective of EPI. ...
... The role of purchasing in NPD and innovation has been identified as an essential enabler in scanning supplier markets, identifying suppliers that can become part of NPD project teams, and managing buyer-supplier relationships to ensure appropriate levels of integration and performance (Lakemond et al., 2001;Cousins et al., 2011;Servajean-Hilst and Calvi, 2018). As supplier involvement is the result of interactions between buying and supplying firms, the positive or negative influence of supplier involvement depends on the role played by the purchasing department, which is responsible for the supplier's contribution to the buying firm's processes (Wynstra et al., 2003). ...
... The literature has already explored to a limited extent the context of innovation for the purchasing function. Some research addresses this issue in single case studies in large firms from the automotive and electronics industries (Wynstra et al., 2003;Homfeldt et al., 2017;Servajean-Hilst and Calvi, 2018), or by conducting multiple case studies in large companies from several industry sectors (Legenvre and Gualandris, 2018). Although necessary when the subject was emerging, this exploratory research does not provide an accurate understanding of the skills needed by buyers to manage innovation. ...
... Researchers recognise the purchasing function as the most relevant for selecting and integrating innovative and available suppliers into an innovation process (Schiele, 2006;Van Echtelt et al., 2008;Legenvre and Gualandris, 2018). Servajean-Hilst and Calvi (2018) show that buyers also motivate their supplier panels to develop specific knowledge for innovation in addition to 'new' suppliers. Pihlajamaa et al. (2019) define how a company can strengthen the innovation capacity of its suppliers, guide its suppliers' innovation processes and/or encourage its suppliers to share their innovations. ...
Article
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
... More elements are constituting the organisational setting a corporate actor is embedded into. For instance, the idea has emerged that innovation purchasers should be pooled in a (sub-)department of their own with the label 'procurement engineering' or 'advanced sourcing', rather than remaining a part of the strategic sourcing group (Schiele, 2010;Servajean-Hilst & Calvi, 2018). Such an organisational setting would again foster the application of skills. ...
... Of course, there are much more elements constituting the organisational setting into a corporate actor is embedded. For instance, the idea has emerged that innovation purchasers should be pooled in a (sub-) department of their own called 'procurement engineering' or 'advanced sourcing', rather than remaining a part of the strategic sourcing group (Schiele, 2010;Servajean-Hilst & Calvi, 2018). When extending the findings, the hypothesis is that such an organisational setting would again foster the application of skills. ...
Thesis
Full-text available
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.
... Or, les difficultés rencontrées par les services Achats lors de leur intégration dans le processus d'innovation suscitent de nombreux débats (Luzzini et Ronchi, 2011), (Melander et Lakemond, 2014), (Servajean-Hilst et Calvi, 2018). En effet, l'implication du service Achats lors de la phase amont de l'innovation est encore très rare et l'intégration de certaines connaissances des fournisseurs dans le processus d'innovation n'est pas toujours possible en interne. ...
... Le service Achats est particulièrement bien positionné pour identifier les idées du marché (Servajean-Hilst et Calvi, 2018) grâce à ses interactions fréquentes avec la base fournisseurs et également grâce à leurs capacités à avoir une vue d'ensemble (Jehan, 2012 ; Tréhan, 2014). Lorsque la relation de confiance est installée entre acheteurs et fournisseurs, ces derniers se rapprochent plus facilement de l'acheteur avec des idées (Homfeldt, Rese, Brenner, Baier et Schäfer, 2017). ...
Article
Resumé Dans un contexte concurrentiel et en profonde mutation, l’industrie agrolimentaire doit sans cesse se renouveler. Alors que l’innovation se fait désormais à un rythme rapide, les entreprises du secteur doivent désormais faire appel à des ressources externes stratégiques. La fonction achats, garante de la gestion du portefeuille de fournisseurs, est en première ligne pour apporter de la valeur dans le processus d’innovation. Cette recherche propose d’analyser les compétences qui doivent être maîtrisées par les acheteurs pour contribuer au processus d’innovation en mobilisant les réseaux de fournisseurs à partir de cinq études de cas sélectionnées sur la base d’innovations et de l’implication du service achats. Les résultats permettent d’identifier de manière empirique les compétences essentielles de l’acheteur qui se répartissent entre compétences techniques, interpersonnelles, relationnelles et métacognitives. Ces compétences, de nature holistique et prospective, permettent une meilleure intégration de la supply chain interne, mais également le développement de la capacité d’innovation des fournisseurs grâce à une augmentation de l’attractivité de l’acheteur leader, source d’innovation organisationnelle dans les entreprises du secteur.
... Despite its relevance, research in understanding purchasing integration, let alone empirical work on the antecedents of purchasing integration in NPD, is very limited (Giunipero et al., 2018;Mikkelsen and Johnsen, 2019;Servajean-Hilst and Calvi, 2018). In their recent case study, Mikkelsen and Johnsen address the issue and conclude that a prerequisite for early purchasing integration is a mature purchasing organisation. ...
... Thus, the involvement of purchasing professionals acts as a key enabling factor that stimulates the involvement of external firm-addressable supplier resources Clark, 1989;Ellram and Liu, 2002;Johnsen, 2009;Sanchez and Heene, 1997). Accordingly, previous research has found that the involvement of the purchasing department in NPD projects leads to cross-functional collaboration and, in particular, supplier involvement Droege et al., 2004;Ellram and Liu, 2002;Hillebrand and Biemans, 2004;Johnsen, 2009;Servajean-Hilst and Calvi, 2018;Tracey, 2004;Van Echtelt et al., 2008). However, purchasing's agent role might not only drive supplier involvement in general, it can also provide knowledge of how to identify, develop and integrate supplier resources effectively. ...
Article
In new product development (NPD) firms increasingly have to rely on external expertise from suppliers. However, results of early supplier integration have been found to be ambiguous. This research empirically tests the hypothesis that the participation of professional purchasing agents early on in the supplier integration process plays a decisive role to distinguish successful projects. Our sample gave evidence that early supply management integration positively moderated supplier involvement’s effect on firm success. Hence, firms may benefit from avoiding supplier integration without professional purchasing management. Still, in many firms the procurement department is not yet integrated in NPD processes early on. Our research identifies four measures those firms applied, in which purchasing got fully embedded in the innovation process: top-management support, structural differentiation, explicit processes, and a collaborative corporate culture. This finding can serve as blue print for implementing purchasing integration and therewith improve the success of supplier integration in NPD.
... Une interrogation des bases d'articles EBSCO, Business Premier et Science Direct, en management, avec les mots-clés « innovation purchas* » ou « advanced purchas* » ou « innovation procurement » ou « innovation buy* » ne révèle que très peu de travaux. Cependant, quelques récents travaux mettent en évidence l'émergence de nouvelles pratiques (les achats-innovation) sans pour autant les caractériser de manière approfondie (Ben Mahmoud-Jouini et Charue-Duboc, 2018 ;Patrucco et al., 2017 ;Servajean-Hilst et Calvi, 2018 ;Viale, 2018). Notre objectif dans cet article est de caractériser ces pratiques et les acteurs qui les portent en répondant aux questions suivantes : Quel est le rôle de ces acteurs dans les initiatives d'Open Innovation ? ...
... Il assure le suivi de la relation client-fournisseur, le respect et l'amélioration de la qualité, des coûts et des délais de livraison des éléments fournis. -Base de données centralisant les informations fournisseurs l'appropriation des connaissances externes par l'interne ; il contribue à la capacité d'absorption de l'organisation (Cohen et Levinthal, 1990 ;Servajean-Hilst et Calvi, 2018). L'AI incarne aussi l'interface entre deux fonctions : l'innovation/R&D et les achats. ...
... For example, Henke and Zhang (2010) give a comprehensive vision of the enabling factors of supplier innovation. As the purchasing function is the legitimate interface between the client and its supply base (Araujo et al. 1999), researchers have also investigated the role of this function in innovation sourcing (Schiele 2010;Luzzini and Ronchi 2011;Luzzini et al. 2015;Homfeldt et al. 2017;Servajean-Hilst and Calvi 2018;Gualandris et al. 2018). However, in practice, tapping or exploiting innovation from suppliers is far from being a well-established process. 2 In this chapter, we investigate how a purchasing function can effectively contribute to innovation sourcing. ...
... A more recent literature adopts the ambidexterity lens to address this issue for the purchasing function (Andersen et al. 2018;Aoki and Wilhelm 2017;Gualandris et al. 2018;Servajean-Hilst and Calvi 2018). Ambidexterity refers to the ability to manage the trade-off between exploration and exploitation to excel simultaneously in both (Gibson and Birkinshaw 2004;O'Reilly and Tushman 2013). ...
Chapter
In this chapter our objective is twofold. First we try to present a comprehensive vision of the evolutionary role of the purchasing function in regard of the Offer Creation Process (OCP) of firms. We present 3 alternative organizational solutions enabling to effectively connect the purchasing actors to the OCP. Thereby, among the new roles emerging for the purchasing function, one is particularly specific to situations where top management is expecting a real contribution in innovation process: the role of Innovation scouting. Therefore the second objective of the paper is a conceptual contribution in order to shape what should be the specific content of scouting innovation from external resources. Our presentation takes into account two contingency factors: the degree of innovation maturity and the status of the target partners in the supply base (existing or new). As a synthesis we propose a framework for choosing suitable organizing model for purchasing functions urged to increase their contribution to the OCP.
... Lastly, supplier base management: The Purchasing function has long been recognized by researchers as the most relevant for selecting and integrating innovative and available suppliers into the innovation process (Schiele, 2010;Van Echtelt et al. 2008). In addition, Servajean-Hilst and Calvi (2018) show that purchasing departments also motivate, in addition to 'new' suppliers, their own supplier panels to contribute to innovation and to develop specific knowledge. ...
... Servajean-Hilst and Calvi (2018) underline the importance of aligning strategic management of the Purchasing department and of R&D department during the innovation process. The concept of 'alignment' is referring "to coherence among all the patterns of activities in the business unit; they are working together around the same goals.' ...
Article
Full-text available
As the pace of change has accelerated rapidly in the agri-food sector, coupled with an ever-increasing level of competitiveness, firms are seeking processes which are likely to strengthen their capacity for innovation. In this context, this paper explores factors that foster the intra-organisational coordination between purchasing, marketing and, R&D/innovation. In addition, we shed light on the involvement of Purchasing early in the innovation process. Five in-depth case studies were selected based on significant innovations on the agri-food industry and the involvement of the purchasing department. The results suggest that intra-functional coordination plays an important role in the innovation process and confirm the relevance of some known factors, such as Early Purchasing Involvement (EPI), the quality of intra-organisational relations and intra-organisational alignment. On the other side, intra-functional factors emerged from our case studies, such as ‘purchaser’s internal attractiveness,’ a willingness attitude and managing anticipation of demand. The results provide empirical evidence on intra-organisational drivers and underline the core role of EPI in agri‐food firms, thus complement earlier studies from other industries.
... The role of existing networks and networking in entering new business networks has been emphasised in empirical studies of start-ups (Aaboen et al., 2017). Studies have also shown that incumbent actors collaborate with start-ups to access new technology, presenting them with new considerations (Homfeldt et al., 2017;Kurpjuweit et al., 2021;Servajean-Hilst and Calvi, 2018). Start-ups may disrupt existing networks and industries by introducing new solutions and taking on roles such as resource renewal, with existing technologies being replaced (Aaboen et al., 2016). ...
Article
Purpose The purpose of this paper is to analyse how start-ups with a clear sustainability focus collaborate with multiple actors at different levels to pursue business ideas and develop sustainable freight transport solutions. Design/methodology/approach This paper builds on a theoretical approach that includes three levels of analysis: the actor level (micro), business-network level (meso) and society and government level (macro). An embedded case study is used of a focal start-up aiming to innovate on networked platforms and electric and autonomous vehicles (EAVs). Findings Activities and resources are developed at the firm (micro), network (meso) and societal levels (macro), and all three levels need to be considered for a start-up, with a clear sustainability focus. Interaction within as well as between levels affects the innovation development, integration and implementation. The many-folded collaborations at the meso level serve as a locus for the integration of EAVs. The start-up’s networking activities with actors at meso and macro levels contribute to it gaining legitimacy in the transport system. Originality/value This paper focuses on the importance of collaboration in the context of developing innovative solutions for environmental sustainability and freight transport and provides a unique case of how a start-up company manages collaborations at the micro, meso and macro levels.
... The latest research indicates that purchasing is moving on from its "bad cop" role that leaves relational governance to R&D, but that this requires a higher level of purchasing maturity, new capabilities and new sourcingor scouting -and supplier relationship strategies to complement existing purchasing practices Mikkelsen and Johnsen, 2019;Picaud-Bello et al., 2019): what Schiele (2010) originally proposed as a new dual innovation-and cost-oriented role of purchasing. Recent studies find a new role for purchasing connecting R&D and purchasing becoming known as "innovation purchasing" (Servajean-Hilst and Calvi, 2018). This new duality has given rise to an emerging ambidexterity perspective that emphasises the opposite and potentially conflicting role of purchasing in having to balance the traditional cost-saving (exploitation) and new innovation-focused (exploration) roles (Andersen et al., 2021;Constant et al., 2020;Gualandris et al., 2018). ...
Article
This paper introduces the special topic forum (STF) on purchasing and innovation. Presenting the findings from a systematic literature review, we take stock of the current state of the field, delineating themes, theories and methods, and identifying key trends over time. Our study shows a take-off in research on purchasing and innovation during the last decade. This has predominantly focused on private sector manufacturing firms although a recent expansion into public sector research is evident. Large-scale surveys and case studies are still the dominant research methods where the unit of analysis is typically the ‘firm’ or ‘project’. The findings also show how in the past the field was driven by questions on how purchasing can facilitate different types of innovation projects, seeking to derive practical implications, and rarely making explicit statements regarding theories applied; this still characterises much of the research but we find an increasing focus on theory development. We also see a shift in the type of technological innovation being investigated: past studies tended to focus on the role of purchasing in new product development (NPD) projects, which reflected a relatively low degree of technological uncertainty, but we see a trend towards innovation projects facing technological uncertainty. Research shows how this requires new ways of sourcing innovations and therefore new ways for purchasing to facilitate innovation sourcing. On the basis of the review, we offer our guidance for future research avenues to 1) carry out more research on procurement of innovation in the public sector; 2) consider new theories and research methods, and 3) go beyond firm-level or dyadic analysis to research networks and ecosystems. We conclude by introducing the papers in the STF.
... At the strategic level, the role of buyers now goes beyond the simple application of purchasing processes and techniques. In a context of innovation, buyers, managers of external resources, boundary-spanner or gatekeeper (Ellram et al., 2020) seem to play a primordial role in stimulating innovation both in the internal supply chain, but also externally through their missions of animating supplier networks (Servajean-Hilst and Calvi, 2018). The integration of these external resources requires specific internal capabilities (Koufteros et al., 2005) which are held by the buyers (Luzzini et al., 2015;Viale et al., 2022). ...
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.
... In this context, the purchasing and supply management (PSM) function was initially considered to be of little importance for the development of new products and the innovativeness of a company (Schiele 2006). However, due to the increasing dependency on inputs and NPD contributions from suppliers over time (Azadegan 2011;Gonzalez-Zapatero et al., 2017;Schiele 2006) studies have focused extensively on the role of the PSM function in promoting innovation (e.g., Le Dain et al., 2019;Schiele 2010;Servajean-hilst and Calvi 2018). Due to the progressive contribution made by PSM to the innovativeness of a company, the future of the PSM function in NPD entails new challenges and possibilities (Johnsen et al., 2020). ...
Article
Bringing innovative products to markets is essential for companies, especially in competitive environments. One of the driving forces for successful new product development (NPD) is the inclusion of the functions that form part of the process such as purchasing and supply management (PSM). While extensive research has been conducted on the role of procurement in promoting innovation, insufficient research on the future of the PSM function in NPD has been conducted. This study addresses this gap, considering increasing digitalization and its effect on the future PSM function managing purchasing and innovation. To explore the future of PSM in NPD, a Delphi survey with 91 experts from industry, academia, and politics or associations was performed. The results reveal that digitalization will influence the PSM function in NPD across different time horizons and forms depending on the subject area. While in many areas, an interplay between digital technologies and human PSM professionals is expected, in certain domains the PSM function is likely to lose added value compared to digital technologies. Furthermore, digitalization is expected to be a potential enabler of a stronger key innovation role for PSM in NPD but to also introduce new requirements such as data science capabilities.
... Thus an important competence is the ability to manage the interface between the two companies. In the customer/supplier relationship, the customer's purchasing department is often nominated to handle the interface between the two companies (Luzzini, Amann, Caniato, Essig, & Ronchi, 2015 ;Patrucco et al., 2017 ;Servajean-Hilst & Calvi, 2018). This organizational function, which evolves into a strategic function, is perfectly positioned to identify and capture external opportunities (Maier, Rück, & Brem, 2017). ...
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... » (Van Weele, 2010) et (Tanskanen et al., 2017). Or, les difficultés rencontrées par les services Achats lors de leur intégration dans le processus d'innovation suscitent des débats (Luzzini et Ronchi, 2011), (Servajean-Hilst et Calvi, 2018). ...
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... Schiele's (2010) "dual role" of purchasing refers to contextual ambidexterity, as his suggestion is that purchasing works simultaneously on cost reductions and product innovation. Sequential ambidexterity in purchasing has roots in research investigating the purchasing process and its distinct phases among which exploration is key (Linder et al., 2003;Legenvre and Gualandris, 2018;Servajean-Hilst and Calvi, 2018). Last, managerial ambidexterity in purchasing can be recognized when it comes to defining a purchasing manager's role in solving organizational tensions (Giunipero and Pearcy, 2000). ...
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... Our second proposition encourages chief purchasing officers to build ambidextrous organizations, especially in terms of the specialization of buyers in "advanced sourcing teams" connected with NPD projects and in activities linked to innovation. In this regard, some firms have already introduced an innovation buyer position (Servajean and Calvi, 2018). The third proposition highlights the need for evolution of the purchasing practices in order to create a true absorptive capacity. ...
... Our second proposition encourages chief purchasing officers to build ambidextrous organizations, especially in terms of the specialization of buyers in "advanced sourcing teams" connected with NPD projects and in activities linked to innovation. In this regard, some firms have already introduced an innovation buyer position (Servajean and Calvi, 2018). The third proposition highlights the need for evolution of the purchasing practices in order to create a true absorptive capacity. ...
Chapter
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Based on a longitudinal case study of four interorganizational product development collaborations, this paper identifies a lure to cross-functional integration that has hereto been neglected. In particular, findings suggest that when the buyer firm separates the Research and Development (R&D) Department from the Procurement Department, the two departments play a good cop–bad cop strategy toward the supplier. Thereby, they are able to foster a high level of goodwill trust between R&D personnel of the collaborating firms, while procurement personnel maintain a high level of formal control. Using an intricate sample design with polar cases, the study shows that cross-functional integration of the two departments hampers interorganizational goodwill trust at the benefit of formal control. The findings offer a way forward for managers seeking to reap the benefits of collaboration, while limiting their exposure to the associated risks.
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This paper addresses a major gap in reported research on open innovation (OI): how do companies implement open innovation? To answer this question a sample of 43 cross-sector firms were reviewed for their OI implementation approaches. The study analyzed how firms moved from practising closed to open innovation, classifying the adoption path according to the impetus for the adoption of the OI paradigm and the coordination of the OI implementation. The way firms adopted OI was found to vary according to (1) their innovation requirements, (2) the timing of the implementation and (3) their organizational culture.
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Recent research indicates that interorganizational partnerships represent a potentially important resource for the development of ambidexterity. However, little is known about how a firm’s ambidexterity evolves from external partnership resources. This article reports an in-depth field investigation of a firm that has successfully created ambidexterity by employing its interorganizational exploration and exploitation partnerships. In particular, the article focuses on three innovation processes within this firm. The findings underscore the importance of a firm’s ambidextrous organizational context, enabling it to reap the distinct benefits of both exploration and exploitation partnerships. Moreover, the findings reveal the specific mechanisms through which the firm integrated and balanced exploration and exploitation within its organization. Overall, this article demonstrates how a firm can build and manage an organizational context that internally balances exploration and exploitation while augmenting both activities through structurally separate interorganizational partnerships.
Article
This paper reviews research on open innovation that considers how and why firms commercialize external sources of innovations. It examines both the “outside-in” and “coupled” modes of open innovation. From an analysis of prior research on how firms leverage external sources of innovation, it suggests a four-phase model in which a linear process—(1) obtaining, (2) integrating, and (3) commercializing external innovations—is combined with (4) interaction between the firm and its collaborators. This model is used to classify papers taken from the top 25 innovation journals, complemented by highly cited work beyond those journals. A review of 291 open innovation-related publications from these sources shows that the majority of these articles indeed address elements of this inbound open innovation process model. Specifically, it finds that researchers have front-loaded their examination of the leveraging process, with an emphasis on obtaining innovations from external sources. However, there is a relative dearth of research related to integrating and commercializing these innovations.
Article
Ambidexterity has been gaining attention among supply chain scholars due to its potential for overcoming trade-offs. Associated with these complexities is the choice of an appropriate governance mechanism in buyer-supplier relationships, which can include contractual and relational approaches. Extending ambidexterity research to the supply chain management domain, we focus in the present paper on ambidextrous governance, which we define as the simultaneous pursuit of both relational and contractual governance elements. We investigate the effect of ambidextrous governance on innovation and cost performance. In addition, as this relationship is highly dependent on the ambidexterity that may be present on the firm level, we theorize about the moderating effect of organizational ambidexterity. We further consider external contextual factors as influencing the ability of ambidextrous governance to effectuate performance, recognizing that the former may not be as effective under conditions of greater demand uncertainty and product complexity. We delineate our hypotheses based on extensions of complementarity theory, and test them, taking a buyer's perspective, with data collected in a multi-respondent survey of manufacturing firms. Our results demonstrate the positive relationship between ambidextrous governance and both innovation and cost performance, and highlight the critical role of organizational ambidexterity as an enabler of innovation performance. We furthermore detect mixed effects for the contextual variables considered – demand uncertainty and product complexity – as moderators, emphasizing that the impact of ambidextrous governance on performance is subject to dynamics that are more complex than originally perceived. With our investigation we extend ambidexterity research further to the supply chain management domain, and offer important implications for research and practice.
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The authors use evidence from more than 200 organizations to demonstrate how companies which invest in alliance structures to co-ordinate alliance activity and systems to capture, codify, communicate and coach alliance-related know-how, definitely reap benefit in a number of ways. They also provide guidance on alternative ways to organize alliance structure and learning and co-ordination systems. The path to these benefits is not easy and companies need resources, people, and caution in managing the dedicated alliance function.
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This paper provides a comprehensive and critical review and synthesis of the current state of empirical research into supplier involvement in new product development (NPD). The paper begins by defining supplier involvement in NPD and evaluating the rationale for supplier involvement in NPD. This suggests that early and extensive supplier involvement in NPD projects has the potential to improve NPD effectiveness and efficiency, however, existing research remains fragmented and empirical findings to date show conflicting results. The paper takes stock of the research on supplier involvement in NPD, tracing the origins of the literature to the late 1980s, and evaluating the development of the field up to the present day. From this broad base of empirical research the analysis identifies a set of factors affecting the success of supplier involvement projects. The paper concludes with a discussion of two emerging themes: (1) supplier relationship development and adaptation; (2) supply network involvement in product innovation.
Article
In this paper we present a study of the structure of three lead firm-network relationships at two points in time. Using data on companies in the packaging machine industry, we study the process of vertical disintegration and focus on the ability to coordinate competencies and combine knowledge across corporate boundaries. We argue that the capability to interact with other companies—which we call relational capability—accelerates the lead firm's knowledge access and transfer with relevant effects on company growth and innovativeness. This study provides evidence that interfirm networks can be shaped and deliberately designed: over time managers develop a specialized supplier network and build a narrower and more competitive set of core competencies. The ability to integrate knowledge residing both inside and outside the firm's boundaries emerges as a distinctive organizational capability. Our main goal is to contribute to the current discussion of cooperative ties and dynamic aspects of interfirm networks, adding new dimensions to resource-based and knowledge-based interpretations of company performance. Copyright © 1999 John Wiley & Sons, Ltd.
Article
This article develops a configuration typology for purchasing's involvement in product development projects. Six configurations are identified and analyzed, varying in degree of coordination and level of purchaser integration. The configurations are illustrated by five case studies performed in different companies operating in different industries. Enabling factors, such as the purchasing organization and the competencies and skills of the purchasers, can facilitate the involvement of purchasers in a development project. Project size and project complexity can be identified as driving factors influencing the appropriateness of the purchaser involvement configurations. Dedicated, full‐time purchasing specialists in combination with a purchasing coordinator provide the strongest degree of involvement necessary for managing large and complex projects, whereas indirect, ad hoc purchasinginvolvement provides the lowest degree of involvement sufficient for small and relatively simple projects.
Article
Suppliers are recognized as an important source of innovation. Research into supplier involvement in new product development has shown that benefits can potentially be reaped by customers. However, a relatively unexplored precondition is the willingness of suppliers to invest in their customers’ innovative efforts. In this exploratory, theory-extending research, we investigate the value that a supplier can experience from being involved in high tech firms’ new product development. We find that value comes in three forms for suppliers: (1) financial payment for sales volumes and product development services, (2) technological knowledge and product designs, and the (3) reputation of doing business with leading-edge firms Additionally, we place this in a dynamic, long-term perspective, and find indications for a positive or negative feedback effect, depending on the emphasis the buyer puts on collaborative innovation with the supplier and the extent to which suppliers can use competences, knowledge and reputation resulting from the collaboration in subsequent business development activities. The positive effect results in added value for both parties in the dyad, and the negative effect leads to the opposite.
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Experience in industry has emphasised the importance of supply markets in planning. Those experiences, particularly over shortages, have resulted in many organisations taking supply factors into their corporate plans for the first time. However, in most such cases the motivation for including that planning input has been defensive — most often because:
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Examines the correlation between the exploration of new possibilities and the exploitation of old certainties in organizational learning. Also discusses the difficulty in balancing resource management between gaining new information about alternatives to improve future returns (i.e., exploration) and using information currently available to improve present returns (i.e., exploitation). Two models which evaluate the formation and use of knowledge in organizations are developed. The first is a model of mutual learning in a closed system having fixed organizational membership and stability. The second is a model which considers the ways in which competitive advantage is affected by knowledge accumulation. The analysis indicates that the choice to rapidly develop exploitation over exploration might be effective in the short term, but is potentially detrimental to the firm in the long term. (SFL)
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The authors address the need for supply relationships to generate, support, and respond to discontinuous innovation (DI), noting that established ways of working appear insufficient. The peculiarities of DI are explained and contrasted with well-known concepts within innovation. The need for customer firms to be both closely collaborative with suppliers while also exploring potential, unpredictable DI elsewhere is proposed, by means of strategic dalliances. A model is presented for understanding and exploring this emerging management challenge.
Article
Interest in early supplier integration in new product development (NPD) has increased as an open innovation approach has become more common in firms. To support supplier integration, the purchasing function of a firm can assume a new ‘dual’ role: contributing to NPD while also managing overall costs. Previous research has offered few insights into how the purchasing function should best be organised so that it will fulfil this dual role. This paper reports on the results of a consortial benchmarking study in which an industry–academic consortium visited and analysed six best-practice firms. The findings describe how innovative firms organise their purchasing function, distinguishing between ‘advanced sourcing’ and ‘life-cycle sourcing’ units. The results include the tools that these firms use, such as regular innovation meetings with suppliers and technology roadmaps linking firm strategy, innovation strategy and sourcing strategies. The paper also recommends that researchers shift from a narrow focus on a single project to a broader consideration of supplier and organisational issues in NPD.
Article
Understanding the changes and trends affecting purchasing requires replacing anecdotal evidence with research-based observations. Using data collected annually from leading firms worldwide, this article details the real and projected changes and trends that have affected and will continue to affect purchasing and sourcing professionals. These changes and trends appear within seven areas: (1) performance improvement requirements, (2) supplier and purchasing/sourcing importance, (3) organization, (4) systems development, (5) performance measurement, (6) supply base management, and (7) purchasing responsibilities and activities. A lack of awareness concerning these trends by purchasing professionals limits their ability to anticipate change and respond in a way that will create competitive advantage for their organization.
Article
Existing studies of supplier involvement in new product development have mainly focused on project-related short-term processes and success factors. This study validates and extends an existing exploratory framework, which comprises both long-term strategic processes and short-term operational processes that are related to supplier involvement. The empirical validation is based on a multiple-case study of supplier collaborations at a manufacturer in the copier and printer industry. The analysis of eight cases of supplier involvement reveals that the results of supplier–manufacturer collaborations and the associated issues and problems can best be explained by the patterns in the extent to which the manufacturer manages supplier involvement in the short term and the long term. The results of this study reveal that the initial framework is helpful in understanding why certain collaborations are not effectively managed yet conclude that the existing analytical distinction among four different management areas does not sufficiently reflect empirical reality. This leads to the reconceptualization and further detailing of the framework. Instead of four managerial areas, this study proposes to distinguish between the strategic management arena and the operational management arena. The strategic management arena contains processes that together provide long-term, strategic direction and operational support for project teams adopting supplier involvement. These processes also contribute to building up a supplier base that can meet current and future technology and capability needs. The operational management arena contains processes that are aimed at planning, managing, and evaluating the actual collaborations in a specific development project. The results of this study suggest that success of involving suppliers in product development is reflected by the firm's ability to capture both short- and long-term benefits. If companies spend most of their time on operational management in development projects, they will fail to use the leverage effect of planning and preparing such involvement through strategic management activities. Also, they will not be sufficiently able to capture possible long-term technology and learning benefits that may spin off from individual projects. Long-term collaboration benefits can only be captured if a company can build long-term relationships with key suppliers, with which it builds learning routines and ensures that the capability sets of both parties are aligned and remain useful for future joint projects.
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This paper reviews the use of case study research in operations management for theory development and testing. It draws on the literature on case research in a number of disciplines and uses examples drawn from operations management research. It provides guidelines and a roadmap for operations management researchers wishing to design, develop and conduct case-based research.