Purchasing and supply management (PSM) contribution to supply-side resilience

Abstract

As the number of supply disruptions is increasing in frequency and severity, firms should not wait idly until an event occurs to act on it. This paper empirically identifies the key capabilities that the PSM function develops and maintains in order to increase resilience in the supply-side of the buying firm. Dyadic case studies were conducted with four buying and supplying companies in Brazil in order to explore how PSM functions contribute internally and externally to supply-side resilience. To provide a framework for understanding the results, the three blocks of the Dynamic Capabilities View (DCV) – Process, Position, and Path – were used as a theoretical underpinning. To support the content analysis, QDA Miner software was used to codify the interviews (data fragmenting and re-assembling) to clarify the data related to the research question and thus facilitate the interpretation. The within-case analyses were conducted focusing on the salient capabilities of PSM's contribution to supply-side resilience, followed by a cross-case analysis to identify similarities and differences across the four cases. The research revealed three key capabilities in which PSM can contribute to supply-side resilience (SSRes): PSM positioning within the company's structure and its authority to make decisions; PSM bundling of proactive and reactive practices from the internal and external part of the organization; and PSM knowledge gathering, storage, and retrieval from business operations that generate competences. By recognizing resilience concerns, PSM managers are more capable of managing and controlling the resources, practices, and competences in their strategic or daily tasks. The resilient capabilities developed by an organization will likely be disseminated to their partners, expanding a resilient effect along the supply chain. This research contributes to the literature by developing a framework that highlights and integrates the PSM dynamic capabilities that contribute to SSRes. Although it has limitations, it allows for future research opportunities.