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Article
Publication date: 12 March 2018

Lars-Erik Gadde and Finn Wynstra

The purpose of this paper is to analyze the role of uncertainty in purchasing and supply management, and the changes of this role over time.

Abstract

Purpose

The purpose of this paper is to analyze the role of uncertainty in purchasing and supply management, and the changes of this role over time.

Design/methodology/approach

The paper is based on a literature review of the development of purchasing and supply management over time and how these issues have been related to uncertainty and dependence. This examination also required analysis of the impact of other concepts from behavioral sciences: interdependence, power and control.

Findings

The paper shows that the relationship between purchasing management and uncertainty has changed substantially over time. Traditionally, uncertainty was avoided, while firms today are engaged in efforts of handling the consequences of uncertainty. This modification affected the features of buyer-supplier relationships, as well as the perspectives and the exploitation of power, control and dependence.

Originality/value

The paper demonstrates both positive and negative consequences of uncertainty, depending on the approach applied in purchasing. Moreover, the analysis shows that uncertainty cannot be avoided. Modifications of purchasing management will reduce certain types of uncertainty. But the same modification also results in increases of other forms of uncertainty.

Details

IMP Journal, vol. 12 no. 1
Type: Research Article
ISSN: 2059-1403

Keywords

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Article
Publication date: 17 July 2009

Wendy van der Valk, Finn Wynstra and Björn Axelsson

The purpose of this paper is to develop theory on effective buyer‐seller interaction for different types of business services. A classification of business services which…

Abstract

Purpose

The purpose of this paper is to develop theory on effective buyer‐seller interaction for different types of business services. A classification of business services which identifies four service types based on how they are used by the buying company is used.

Design/methodology/approach

Propositions based on earlier work in this area and validate these empirically by studying interaction in nine ongoing service exchanges at two different buying companies are developed.

Findings

For the three service types that could be identified in the case companies, the extent to which companies display a pattern of interaction that is in line with the proposed pattern has a positive effect on service exchange success has been largely found. Some aspects of the proposed patterns, however, seem less critical for success than others, leading to minor revisions in the effective patterns of interaction.

Research limitations/implications

The main limitation of this study is that only the interaction patterns for three of the four service types could be empirically validated in this paper. Further studies, exclusively aimed at testing the effectiveness of the revised interaction patterns, need to encompass all four service types.

Practical implications

The research eventually holds valuable implications for buying firms regarding the explicit and effective differentiation in interacting with their external service providers. Conversely, service providers should think about how their customers use their service to involve the appropriate seller representatives and address the right issues in the ongoing interaction.

Originality/value

The paper contributes to the body of knowledge in operations management by focusing on the design and management of a series of service encounters in business‐to‐business relationships. It is a first step towards empirical validation in an area with scant theoretical development.

Details

International Journal of Operations & Production Management, vol. 29 no. 8
Type: Research Article
ISSN: 0144-3577

Keywords

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Article
Publication date: 28 January 2014

Wendy van der Valk and Finn Wynstra

The paper aims to empirically validate a recently developed typology to demonstrate that services that are similar in terms of technical content, but different with regard…

Abstract

Purpose

The paper aims to empirically validate a recently developed typology to demonstrate that services that are similar in terms of technical content, but different with regard to how they are used by the buying company, require different buyer-supplier interaction processes.

Design/methodology/approach

The paper conducts an embedded case study based on dyadic data collection to investigate the purchase of cleaning services by Netherlands Railways (NS) from two suppliers. These services differ with regard to how they are used by NS: as part of the value-proposition to customers (train and station cleaning) or as part of the support processes for NS (office cleaning).

Findings

The paper finds that for a technically homogenous service, fundamental differences in required interaction arise as a result of different usage situations. These differences are reflected in the sourcing decision and the design of the service delivery management process.

Research limitations/implications

Besides the general limits of single case studies regarding external validity, a specific limitation of the study is the limited number of supplier interviews conducted.

Practical implications

In order to develop appropriate sourcing and service delivery management strategies, practitioners need to consider the use of the service purchased and how it relates to their value proposition. This research shows that pooling volume for services that are used differently may enable immediate price reduction but could reduce supplier performance and ultimately customer satisfaction.

Originality/value

The case study and the validated typology complement the limited literature on the procurement of services transferred to the next level of customers in the supply chain.

Details

International Journal of Operations & Production Management, vol. 34 no. 2
Type: Research Article
ISSN: 0144-3577

Keywords

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Book part
Publication date: 17 August 2017

Lars-Erik Gadde and Finn Wynstra

In a relationship both sides are important for the development. This is one reason why purchasing has always been as central as marketing in the empirical studies in IMP…

Abstract

In a relationship both sides are important for the development. This is one reason why purchasing has always been as central as marketing in the empirical studies in IMP. The manner in which the features of business networks affect the role of purchasing and the roles of the suppliers and supply management is here in focus. The existence and importance of business relationships have normative consequences for purchasing that are very distinct and break clearly with some of the traditional normative recommendations for purchasing. The authors believe that ‘buying organisations increasingly need to develop interactive interfaces with their suppliers. One reason is that collaborative innovation and therefore the development role of PSM (purchasing and supply management) is becoming more important’. The conclusion is clear: If the buying organisations want to get more out of the suppliers than the supply of a standard product at a certain price, they have to engage in a more extensive interaction and develop a broader and closer business relationship that must be properly managed. That implies giving up some autonomy and accepting dependence on suppliers as developmental partners.

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Article
Publication date: 17 May 2013

Kai Foerstl, Evi Hartmann, Finn Wynstra and Roger Moser

The purpose of this paper is to develop a set of nine hypotheses linking four purchasing and supply management (PSM) practices directly to purchasing performance and…

Abstract

Purpose

The purpose of this paper is to develop a set of nine hypotheses linking four purchasing and supply management (PSM) practices directly to purchasing performance and indirectly to financial performance.

Design/methodology/approach

The authors collected data in a global cross‐industry survey of 148 companies, combining primary interview and survey data with secondary data on firm performance, in order to minimize the impact of common method variance.

Findings

Support was found for eight of the nine hypotheses. In particular, a positive impact was found of cross‐functional integration and functional coordination on purchasing performance, and of purchasing performance on firm performance. Both talent management and performance management have a positive impact on cross‐functional integration and functional coordination. Talent management also has a direct impact on purchasing performance, in contrast to performance management.

Originality/value

The association of enhanced PSM maturity levels with financial performance metrics collected from secondary data sources provides robust empirical support for the stated but to this point largely untested positive impact of PSMmaturity on the firm's competitive position.

Details

International Journal of Operations & Production Management, vol. 33 no. 6
Type: Research Article
ISSN: 0144-3577

Keywords

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Article
Publication date: 1 October 2006

Finn Wynstra, Björn Axelsson and Wendy van der Valk

Most existing classifications of business services have taken the perspective of the supplier as opposed to that of the buyer. To address this imbalance, the purpose of…

Abstract

Purpose

Most existing classifications of business services have taken the perspective of the supplier as opposed to that of the buyer. To address this imbalance, the purpose of this paper is to propose a classification of business services based on how the buying company applies the service with respect to its own business processes.

Design/methodology/approach

The paper considers some specific aspects of the process of buying and exchanging business services, focusing on the everyday production and consumption of services as opposed to the initial purchasing and negotiation phases.

Findings

Earlier literature has developed similar, albeit less elaborate classifications, but does not provide detailed insight into how such classifications are related to differentiated buyer‐supplier interaction. This classification distinguishes between four business service applications; as a component, semi‐manufacture, instrument or consumable. For each of these four types of services, interaction has to achieve different objectives and consequently they differ with regards to required organizational resources in terms of required capabilities and buyer‐supplier interfaces.

Research limitations/implications

Primarily conceptual and exploratory in nature, this paper is intended as a review of existing literature and possible starting point for further empirical validation and theoretical refinement. The paper contends that the differences in application have a significant impact on interaction patterns, but this is not to say that other variables have no impact on buyer‐supplier interaction patterns. Subsequent research should seek to control for those other possible sources of variation.

Practical implications

The overall implication of this classification is that for different services, the buying company should assess how they are applied. Subsequently, it is relevant for firms to consider what functional aspects are crucial and who are likely to become, or who should be involved and to what extent, in the purchasing decision process and in the interactions that take place after the decision has been made.

Details

International Journal of Service Industry Management, vol. 17 no. 5
Type: Research Article
ISSN: 0956-4233

Keywords

Content available
Article
Publication date: 13 April 2015

Antonella La Rocca

Abstract

Details

IMP Journal, vol. 9 no. 1
Type: Research Article
ISSN: 2059-1403

Content available
Article
Publication date: 7 September 2015

Brian Fynes and Paul Coughlan

Abstract

Details

International Journal of Operations & Production Management, vol. 35 no. 9
Type: Research Article
ISSN: 0144-3577

Content available

Abstract

Details

IMP Journal, vol. 12 no. 1
Type: Research Article
ISSN: 2059-1403

Content available
Book part
Publication date: 17 August 2017

Abstract

Details

No Business is an Island
Type: Book
ISBN: 978-1-78714-550-4

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