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1 – 10 of over 87000
Article
Publication date: 30 May 2023

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.

Details

International Journal of Physical Distribution & Logistics Management, vol. 53 no. 9
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 7 June 2011

P. Thrulogachantar and Suhaiza Zailani

The purpose of this paper is to analyze the importance of purchasing strategies contribution on manufacturing performance, realizing purchasing function as a key component in…

4428

Abstract

Purpose

The purpose of this paper is to analyze the importance of purchasing strategies contribution on manufacturing performance, realizing purchasing function as a key component in organizations.

Design/methodology/approach

A total of 750 questionnaires were distributed via e‐mail and resulted in 158 questionnaires or 21 percent being returned with complete information and used for statistical analysis, to study the significant level of the constructed model among manufacturing firms located in major industrial states in Malaysia.

Findings

The results obtained reveal that purchasing strategies create significant positive impact on manufacturing performance which comprises the competitive priorities of the firms in terms of quality, cost, cycle time, new product introduction time line, delivery speed and dependability and finally, customization responsiveness performance.

Research limitations/implications

Manufacturing firms should focus on purchasing strategies, effective negotiation, supplier collaborative relationship and interaction; effective cost management and supply base management as navigators for their excellence performance in the current volatile market conditions.

Originality/value

The paper shows that purchasing strategies are vital for manufacturing firms in order to remain competitive and relevant in the challenging and competitive business environment.

Details

Journal of Manufacturing Technology Management, vol. 22 no. 5
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 1 January 1978

David R. Rink

Development of Research ProblemThe needs, wants, and desires of industrial customers are fulfilled in a market environment epitomised by exchanges between buyers and sellers. Both

Abstract

Development of Research ProblemThe needs, wants, and desires of industrial customers are fulfilled in a market environment epitomised by exchanges between buyers and sellers. Both of these parties execute strategic moves which are intended to perpetuate their existence as well as optimise the use of available resources. While the over‐riding ambition of the investigator was to identify a model‐form which might serve as a reference for substantiating certain strategic moves by corporate purchasing executives, the more immediate desire was to test empirically the validity of applying such a theory to purchasing. The conceptual model‐form was hypothesised by Berenson. He posited it would answer some of the questions raised by purchasing executives concerning guidelines for establishing purchasing strategy as well as for setting priorities among strategies. The concept was the product life cycle (PLC) theory.

Details

International Journal of Physical Distribution & Materials Management, vol. 8 no. 4
Type: Research Article
ISSN: 0269-8218

Article
Publication date: 24 October 2018

Tale Skjølsvik

While goods- and service-dominant logics are separated in most research as alternative and often incompatible paradigms, this paper aims to show how these logics can be and are…

Abstract

Purpose

While goods- and service-dominant logics are separated in most research as alternative and often incompatible paradigms, this paper aims to show how these logics can be and are combined in purchasing strategies in organizations. The paper also illustrates that multiple logics exist in addition to purely goods- or service-based logics.

Design/methodology/approach

The paper is based on empirical data on the purchasing of management consulting services, which represent an extreme context for understanding the combination and intersection of goods- and service-dominant logics. In particular, four in-depth case studies and interviews with 51 sellers and 30 buyers of management consulting services are used to develop a typology of purchasing approaches that combines goods- and service-dominant logics.

Findings

The study shows that goods- and service-dominant logics are combined in two main purchasing phases: supplier set selection and assignment selection. In both these phases, parallel and knowledge-based, embedded and experience-based approaches were identified as ways of combining goods- and service-dominant logics in the purchasing context.

Research limitations/implications

The research presented in the following adds to our existing understanding of possible purchasing strategies under multiple logics in buying organizations. Future research should explore the conditions under which different strategies are and should be applied in organizations.

Practical implications

This paper gives practitioners alternative approaches to choose from in their purchasing and sales of knowledge-intensive services, in addition to transactional and relational strategies.

Originality/value

The research adds to existing research on business and industrial marketing by identifying particular purchasing strategies on a continuum between goods- and service-dominant logics.

Details

Journal of Business & Industrial Marketing, vol. 33 no. 8
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 1 September 2001

J. Gordon Murray

Considers the development and delivery of purchasing strategy within a local government setting. It demonstrates that purchasing can contribute to the political objectives of…

3249

Abstract

Considers the development and delivery of purchasing strategy within a local government setting. It demonstrates that purchasing can contribute to the political objectives of local government and suggests that strategic alignment leads to a repositioning of purchasing. Consideration is given to the intended and realised strategy prior to a change model being presented which could form the basis for further research.

Details

International Journal of Public Sector Management, vol. 14 no. 5
Type: Research Article
ISSN: 0951-3558

Keywords

Article
Publication date: 1 March 1987

J.R. Caddick and B.G. Dale

There is no great reservoir of literature available to the serious student of that part of management sciences known as purchasing. Although there are a number of textbooks…

Abstract

There is no great reservoir of literature available to the serious student of that part of management sciences known as purchasing. Although there are a number of textbooks prepared by academics in purchasing, much of the authorship of other purchasing‐related literature has been undertaken by practitioners and academics in the field of marketing. This is regrettable but quite logical, for it arises out of the fuller explanation of the subject. Here, marketers have perceived a legitimacy in researching inter alia such areas as buyer behaviour, buyer perceptions, the organisation of buying and the decision‐making process of the purchasing function. Although many of these pieces of work are helpful to those studying purchasing subjects, they are necessarily written from the marketing perspective and therefore not entirely adequate for the serious student of purchasing. As an example, such authors naturally see the buyer as part of the customer market and references to markets is within this context. The buyer himself has a perspective of his/her supply markets which recognise their wider scope and increased complexity more accurately than can be perceived by an author taking a marketing viewpoint.

Details

International Journal of Physical Distribution & Materials Management, vol. 17 no. 3
Type: Research Article
ISSN: 0269-8218

Article
Publication date: 1 May 1991

Robert M. Monczka and Robert J. Trent

Evolving purchasing/sourcing strategies necessary for competitivesuccess during the 1990s are identified. The strategies, identified bypurchasing executives of leading‐edge…

Abstract

Evolving purchasing/sourcing strategies necessary for competitive success during the 1990s are identified. The strategies, identified by purchasing executives of leading‐edge Fortune 100 firms during field interviews and a Delphi process, reflect purchasing′s growing contribution to firms′ overall competitive performance. Also included is a discussion of supply base optimisation and total quality management at the supplier as necessary prerequisites for the implementation of increasingly sophisticated strategies which follow a progression to achieving an integrated set of purchasing strategies. There is also a discussion of the linkage between corporate and purchasing strategy.

Details

International Journal of Physical Distribution & Logistics Management, vol. 21 no. 5
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 1 April 1982

M.T. Cunningham

Purchasing operates at the interface between a company and its supply market environment. Its activities are essentially concerned with securing the resource inputs of materials…

Abstract

Purchasing operates at the interface between a company and its supply market environment. Its activities are essentially concerned with securing the resource inputs of materials, components and equipment into the business, and in the selection and handling of suppliers of those inputs. Many earlier studies have described and analysed buying decision‐making from a marketing perspective, in order to predict and influence the eventual sourcing decisions in a manner favourable to the supply company. For example, studies have identified the stages in buying, the roles and influence of individuals on buying decisions and the criteria used by buyers in choosing between alternative sources of supply. This has led to purchasing being viewed as a process in which the focus is primarily upon specific buying episodes or discrete purchasing decisions, such as the choice of new suppliers or the exercise of source loyalty to existing ones. An overall strategic view of the range of purchasing activities from the buyer's perspective has been neglected. Obviously, purchasing is not confined to isolated decisions and short‐term operational episodes. Indeed, recent work in the subject has emphasised that specific buying decisions are better viewed within the context of the overall relationships between buying and selling companies. Each supplier and customer is interested in the other's resources and capabilities. Consequently, the exchange of goods is but one part of a broader exchange of services, information and value systems between the two parties to a transaction. Clearly, buyers and sellers are active participants in the transaction process and are influenced by the actions of the other. Complex relationships develop between individual buyers and marketers in any dyadic interaction but they occur also between the members of the customer's decision‐making unit and a supplier's team of marketing; technical, manufacturing and managerial personnel. This “interaction approach” to industrial purchasing and marketing proposed by the IMP group of researchers, focuses attention upon the influence of four groups of variables on buyer‐seller relationships. First, the parties involved (individuals and organisations); second, the atmosphere surrounding the relationship (co‐operation, trust, exercise of power, dependence); third, the environmental context (market structure, competition), and fourth, the exchange process (the exchange of technological expertise, products, services, information etc).

Details

International Journal of Physical Distribution & Materials Management, vol. 12 no. 4
Type: Research Article
ISSN: 0269-8218

Article
Publication date: 22 August 2008

Chia‐Min Wei and Chia‐Yon Chen

The purpose of this paper is to discuss how the incentive from transaction cost can be beneficial due to the selection and implementation of the purchasing strategy under…

5897

Abstract

Purpose

The purpose of this paper is to discuss how the incentive from transaction cost can be beneficial due to the selection and implementation of the purchasing strategy under different scenarios in the value chain, including the automotive assembly sector and auto parts sector. Furthermore, it aims to investigate how to reach break even point between transaction cost and agency cost and to further achieve the goal of cost minimization.

Design/methodology/approach

This is empirical analysis of variables constructed from transaction cost theory and data obtained from two famous motor companies in Taiwan automotive industry. This study adopts the probit model and tobit regression model to test and discuss the parameters in the model to deeply realize the influence of transaction cost variables towards purchasing strategy.

Findings

The findings prove the situation of multiple sourcing in supplying auto parts and demonstrate that the dimensions in transaction cost are truly important factors to affect the purchasing strategies. In addition, the empirical results show the explanatory capabilities of variables are very significant in monopoly power, steering system, electro mechanism, and other parts systems.

Practical implications

The awareness on transaction cost are beneficial to partner selection of automotive companies in Taiwan. These findings also improve the quality of purchasing strategy in Taiwan automotive industry.

Originality/value

This study explores the variables of transaction cost influencing purchasing strategies. In addition, the knowledge on transaction cost towards purchasing strategy helps companies enhance the quality in future purchasing strategy and select their suppliers.

Details

Industrial Management & Data Systems, vol. 108 no. 7
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 20 July 2010

Javier González‐Benito

The purpose of this paper is to analyze the effect of purchasing and supply strategies on business performance.

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Abstract

Purpose

The purpose of this paper is to analyze the effect of purchasing and supply strategies on business performance.

Design/methodology/approach

The empirical results are based on information provided on a questionnaire by purchasing managers in 180 Spanish industrial firms.

Findings

An organization's commercial and financial performance increases when it increases the relative importance of flexibility and decreases the relative importance of reductions in stock levels and purchasing prices in its supply strategy. The best performing firms are those that combine quality, dependability, and flexibility as priority objectives and relegate cost reductions to secondary importance.

Research limitations/implications

Although the research is designed to mitigate the effect of common method bias, it still depends on perceptual measures of performance. Further research should enlarge the list of generic competitive objectives to take into account newer dimensions cited in existing literature, such as innovation or environmental management.

Practical implications

The results provide useful information for managers who wish to configure an optimal profile of competitive objectives for their purchasing and supply function.

Originality/value

The paper uses an approach that introduces two innovative elements. First, strategy is conceived of as a profile of generic competitive objectives, not as a set of practices deployed by the purchasing function. Second, the study introduces the concept of the relative importance of a competitive objective, rather than the absolute importance of that objective, which enables an analysis of the effect of the interrelationships among the different competitive objectives.

Details

International Journal of Operations & Production Management, vol. 30 no. 8
Type: Research Article
ISSN: 0144-3577

Keywords

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