Understanding politics in PSM teams: A cross-disciplinary review and future research agenda

Abstract

Purchasing and Supply Management (PSM) decisions, such as make-or-buy or vendor selections, are highly dependent on the cooperation of several functions in decision-making teams in order to make more holistic and effective decisions. However, members of cross-functional PSM teams often also pursue diverse goals rooted in functional incentive structures that may lead to misalignment and competition. One of the resulting problems are so-called “organizational politics”, being self-serving influence attempts among functional representatives. Examples can be nondisclosure of information, coalitions, or lobbying to protect unidimensional functional interests that potentially obstruct effective PSM decision making. So far, PSM scholars have made exploratory and inductive inquiries in team politics while the larger body of research on politics exists outside the PSM scope. Thus, as PSM scholarship transcends toward deductive theory testing designs on team politics, the fields is at risk taking isolated perspectives and failing to deduce from the extant disaggregated “general management” literature on politics. In response to this emerging trend, we review 91 contributions to the organizational literature on politics at the individual, team or group, and dyadic (individual-individual) level to build a future research framework on politics in real-world cross-functional PSM decision-making teams. To do so, we distinguish thematic areas of interest and derive future avenues for research in light of ongoing PSM debates on human resource management in PSM, leadership in PSM teams, and top management support of PSM. Furthermore, we derive epistemological, instrumental, and theoretical guidance on how to approach politics in cross-functional PSM teams.