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1 – 10 of over 47000Paul D. Cousins, Benn Lawson and Brian Squire
The purpose of this paper is to investigate the different patterns of purchasing function configuration, and the relationship between such patterns and organisational performance.
Abstract
Purpose
The purpose of this paper is to investigate the different patterns of purchasing function configuration, and the relationship between such patterns and organisational performance.
Design/methodology/approach
Despite considerable attention, there is little evidence showing the current situation toward the development of purchasing functions within organisations. Through quantitative data collected from 151 UK purchasing executives, cluster analysis is used to uncover and characterize four purchasing function configurations.
Findings
Four configurations, termed strategic, capable, celebrity, and undeveloped, were identified according to the characteristics they possess. Significant differences in supplier‐ and organisational‐related performance outcomes were found across these four purchasing function configurations. Purchasing skills were also shown to be a precondition for purchasing to exert influence within the organisation.
Research limitations/implications
A cross‐sectional survey provides limited longitudinal insight into the evolution of purchasing functions. Future research could examine how firms move between purchasing configurations. This study does, however, improve understanding of the different types of purchasing functions, their performance outcomes, and makes recommendations for potential strategies to be adopted for purchasing function improvement.
Practical implications
The findings are useful for practitioners seeking to improve the performance and standing of the purchasing function through identification of the characteristics and potential limitations faced at each phase.
Originality/value
This paper is one of few studies to provide an empirical test of purchasing function configuration, and the implications for organisational performance.
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Andrea Stefano Patrucco, Davide Luzzini and Stefano Ronchi
The purpose of this paper is to analyze the contribution of suppliers and the purchasing department in affecting a firm’s ability to innovate.
Abstract
Purpose
The purpose of this paper is to analyze the contribution of suppliers and the purchasing department in affecting a firm’s ability to innovate.
Design/methodology/approach
The paper develops a theoretical framework (tested through an international survey on a sample of 524 companies) grounded on the resource-based view theory, innovation management and operations management literature.
Findings
The results show that innovation is positively affected by supplier collaboration, which in turn is favored by purchasing absorptive capacity. Empirical evidence also shows that purchasing status and innovation objectives enable the development of greater absorptive capacity.
Research limitations/implications
Because of the survey approach, the research results are limited to the data collected. Researchers are encouraged to verify propositions with complementary methodologies (e.g. case studies).
Practical implications
The findings confirm the relevant role of the purchasing interface in innovation as well as the positive impact of supplier collaboration, contributing both to existing literature and managerial practice in terms of successful collaborative new product development (NPD) processes.
Originality/value
The study integrates three different research fields (innovation, operations, and purchasing management), providing a synergistic vision on the topic and considering, as a unit of analysis, the purchasing category level (rather than the NPD project level).
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This paper examines the role of purchasing in facilitating early supplier involvement in new product development (NPD) in contexts of technological uncertainty (TU). Taking a…
Abstract
Purpose
This paper examines the role of purchasing in facilitating early supplier involvement in new product development (NPD) in contexts of technological uncertainty (TU). Taking a purchasing perspective, it develops a moderate model to explain the effects of supplier involvement on NPD performance and whether and how knowledge orchestration capability (KOC) and TU affect these relationships. Additionally, KOC drivers are defined.
Design/methodology/approach
A total of 317 usable questionnaires from Chinese high-technology firms were collected. Moderated multiple regression (MMR) was used to test all hypotheses. Resource orchestration theory (ROT) was the adopted theoretical lens.
Findings
Two forms of supplier involvement (as knowledge source and co-creator) were found to distinctly affect NPD performance and have potential substitutive relationships. Purchasing KOC positively moderates the relationships between forms of supplier involvement on NPD performance. TU strengthens the moderating role of purchasing KOC. Furthermore, purchasing status and supply complexity are important antecedents for purchasing KOC.
Practical implications
These findings serve as a blueprint for involving purchasing in technologically uncertain NPD projects and improve supplier NPD integration. Additionally, management should recognize the purchasing function's role and empower it to identify ideas, knowledge and solutions within supply networks.
Originality/value
This research contributes to the ROT by examining the role of purchasing KOC on supplier involvement in NPD performance, especially under TU. Moreover, it demonstrates significant and positive relations between purchasing department status and external supply complexity on its KOC.
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Andrea S. Patrucco, Davide Luzzini, Daniel Krause and Antonella Maria Moretto
The authors empirically examine purchasing strategy typologies based on strategic intent (i.e. competitive priorities) and practices used to achieve these priorities. The authors…
Abstract
Purpose
The authors empirically examine purchasing strategy typologies based on strategic intent (i.e. competitive priorities) and practices used to achieve these priorities. The authors further investigate the implementation conditions of such strategies based on perceived uncertainty and strategic purchasing.
Design/methodology/approach
The authors utilize case study data from 11 international service and manufacturing firms with global supply chains. Each company was profiled based on the level of perceived environmental uncertainty, the characteristics of strategic purchasing, the use of relevant purchasing practices and its ability to create value through purchasing.
Findings
The study findings show that four purchasing strategy types exist: Purchasing Rationalization, Supply Base Optimization, Purchasing as a Service and World-Class Supply Base Management. Lower levels of perceived environmental uncertainty favor the adoption of rationalization strategies (i.e. Purchasing Rationalization and Supply Base Optimization), while increased uncertainty leads companies to switch to relationship-focused strategies (i.e. Purchasing as a Service and World-Class Supply Base Management). Further, that specific components of strategic purchasing (i.e. strategic planning, maturity, status and report level) enable the successful implementation of different strategy types.
Originality/value
This research contributes to the existing literature by outlining the different types of purchasing strategies and the external and internal factors that need to be considered to achieve strategic alignment and value creation in purchasing, and by classifying purchasing strategy types at the functional level based on empirical evidence.
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In recent years business organisations have recognised the great profits potential offered by the demand for status goods and have sought to encourage still higher levels of status…
Abstract
In recent years business organisations have recognised the great profits potential offered by the demand for status goods and have sought to encourage still higher levels of status seeking among consumers. To this end, many products are designed and promoted either wholly or partly as status symbols, with marketing strategies geared to securing rapid rates of social obsolescence in goods and services on offer. At the same time, we still know remarkably little about conspicuous consumption itself or about buyer behaviour in the market for status goods. This article examines the special characteristics of the conspicuous consumer and explores ways in which marketing planning may be improved.
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Norhayati Zakaria, Wan-Nurisma Ayu Wan-Ismail and Asmat-Nizam Abdul-Talib
The purpose of this research is to understand the importance of value orientation on conspicuous consumption in the youth market segment in Southeast Asia. In particular, the…
Abstract
Purpose
The purpose of this research is to understand the importance of value orientation on conspicuous consumption in the youth market segment in Southeast Asia. In particular, the focus is to understand three different types of value orientation (specifically cultural values, material values and religious values) and its effects on conspicuous consumption behaviour.
Design/methodology/approach
An integrative theoretical model is proposed based on Hofstede's cultural dimension, the materialism value scale and religious commitments to predict the relationship for the value orientations of Generation Y's (Gen Y's) conspicuous consumption behaviour. The data was collected from undergraduate students enrolled in general education courses in three universities in Malaysia. Using cross-sectional data, 262 sets of valid questionnaires were used to perform the statistical analysis for the measurement and structural model using partial least squares equation modelling (PLS-SEM) path modelling.
Findings
We position our study by raising the pertinent question of “Seriously, Conspicuous Consumption?” to establish a clear understanding of whether Malaysian Gen Y individuals are conspicuous consumers and, if they are, which of the three values matter the most. In order to answer the question of whether Malaysian Gen Y engages in conspicuous consumption, we arrive at an understanding that, given multi-value orientations, conspicuous behaviour can be motivated and impacted by one value orientation and constrained by others. Hence, value orientation offers an insightful explanation of one specific type of consumer behaviour in the context of Asia as an emerging global market. Thus, our study provides two key theoretically significant findings. In general, our findings provide insights into how the multi-value orientations (i.e. cultural, material and religious orientations) contribute to several bodies of literature—namely, conspicuous consumption, international marketing and transcultural marketing. The results revealed that collectivism and materialism were positively and significantly related to conspicuous consumption. Uncertainty avoidance, although significant, had a negative relationship with conspicuous consumption. The other values (masculinity, power distance and religious values) were not significantly related to conspicuous consumption.
Research limitations/implications
Purchasing luxury goods is becoming an emergent phenomenon in Asia, particularly among young consumers. This paper provides marketing managers, particularly brand owners, with practical and realisable examples of how to plan and execute their marketing plans. A more profound understanding of this relationship may also serve to aid marketing managers in devising more focused marketing strategies and thus allocate marketing resources more efficiently. Hence, marketers could develop an effective communication strategy so that the target consumers will be aware of their goods because the purchase of luxury goods is likely to be motivated by social, cultural and personal factors.
Originality/value
This article examines the impact of value orientations on conspicuous consumption behaviour in Malaysian Gen Y consumers. The model proposed in this study is useful in predicting conspicuous consumption among Gen Y. By identifying the factors influencing this emergent type of consumer behaviour, global retailers will be informed about this particular market segmentation in terms of its preferences and desires. The article discusses the research findings and concludes with managerial implications and limitations.
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Ashok Kumar Patel, Anurag Singh and Satyanarayana Parayitam
The study's objective is to examine the consumers' intention to buy counterfeit brand shoes. A conceptual model is developed to test the risk-taking and word-of-mouth (WOM) as a…
Abstract
Purpose
The study's objective is to examine the consumers' intention to buy counterfeit brand shoes. A conceptual model is developed to test the risk-taking and word-of-mouth (WOM) as a moderator in the relationship between status consumption, brand image, and consumer intention to buy counterfeit shoes.
Design/methodology/approach
Based on the theory of reasoned action (TRA) and signaling theory (ST), this research was conducted in the Indian National Capital Region. Using a structured instrument, the data was collected from 240 respondents. After checking the psychometric properties of the survey instrument using the Lisrel package of structural equation modeling, Hayes's PROCESS macros were used for testing the hypotheses.
Findings
The findings from the study indicate that (1) status consumption and brand image are positively associated with purchase intention of counterfeit brand shoes, and (2) risk-taking moderates the relationship between (1) status consumption and purchase intention, and (2) brand image and purchase intension, (3) significant three-way interaction between WOM, risk-taking and status consumption on purchase intention, and (4) significant three-way interaction between brand image, WOM, and risk-taking on purchase intention of counterfeit brand shoes.
Research limitations/implications
As with any survey research, this study has common method variance as a potential problem. However, through the latent variable method and Harman's single-factor analysis, the common method variance was checked. The study has several implications for managers, e-marketers, and consumers.
Practical implications
The study has several implications for marketers selling counterfeit products and managers intending to protect their branded products.
Originality/value
A conceptual model showing two-way and three-way interactions between status consumption, risk-taking, and WOM influencing the consumer purchase intention of counterfeit products was discussed. This is the first of its kind in India to explore such relationships.
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Stephen B. Gordon, Stanley D. Zemansky and Alex Sekwat
This article revisits two vital questions largely ignored in the scholarly literature devoted to professionalism in government. First, is the public purchaser a professional? And…
Abstract
This article revisits two vital questions largely ignored in the scholarly literature devoted to professionalism in government. First, is the public purchaser a professional? And second, is public purchasing a profession? Our reexamination of the first question led us to conclude that a public purchaser that meets certain requirements in government purchasing practices distinct from traits reserved for recognized traditional professions such as law, medicine and clergy can be a professional. Furthermore, when we analyzed the basic criteria that characterized a profession such as the existence of esoteric knowledge, rigorous formal training, codes of ethics, representative association, autonomy in practice, and criteria for admission into the occupation, we concluded that public purchasing is a profession.
Examines ethics at the interface between sales and purchasing.Argues that it is an area of organizational life riven with unethicalpractices and that, despite the attempts to…
Abstract
Examines ethics at the interface between sales and purchasing. Argues that it is an area of organizational life riven with unethical practices and that, despite the attempts to improve the situation, these practices remain widespread and persistent. Organizational concern with the current situation is expressed much more strongly with respect to purchasing than with respect to sales. This willingness to apply double standards, even within the same organization, offers a clue to the explanation for the continued unethical environment in which purchasing and sales interact. Suggests that the individuals concerned must accept some of the responsibility, but the major responsibility lies with organizational factors such as culture and the influence of superiors. Concludes that organizations will tend to get the behaviour which they reward and value within their culture.
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Andrea S. Patrucco, Davide Luzzini, Antonella Moretto and Stefano Ronchi
The purpose of this paper is to shed light on the dynamics of buyer–supplier industrial relationships and the role of customer attractiveness—a requisite to obtain best efforts…
Abstract
Purpose
The purpose of this paper is to shed light on the dynamics of buyer–supplier industrial relationships and the role of customer attractiveness—a requisite to obtain best efforts from suppliers involved in collaborative initiatives.
Design/methodology/approach
The paper develops a theoretical framework tested through an international survey with a structured equation modeling approach.
Findings
Results confirm that customer attractiveness positively affects both innovation and cost performance ensured by suppliers. Moreover, several direct and indirect antecedents of customer attractiveness are identified, including characteristics of the buying firm’s procurement department (i.e. procurement knowledge and procurement status) and supply chain relationship characteristics (i.e. proficiency of supplier collaboration and visibility).
Research limitations/implications
Because of the survey approach, the research results are limited to the data collected.
Practical implications
Findings support the relevance of collaborative relationships in improving performance, and the key role procurement department could play in managing the multifaceted aspects of supplier collaboration.
Originality/value
This paper investigates, on the one hand, why customer attractiveness is relevant for supply chain management, and what are the effects on innovation and cost performance ensured by suppliers; on the other hand, antecedents of customer attractiveness are considered, with a main focus on organizational and relational procurement variables.
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