Purchasing And Supply Management Research Articles

The effect of team-member knowledge, skills and abilities (KSAs) and a common learning experience on sourcing teamwork effectiveness

PurposeA lack of sourcing-specific team research prevents a full understanding of sourcing teamwork effectiveness (STE). Moreover, the limited purchasing and supply management (PSM) team literature often tends to focus on an aggregate group level. The paper makes a step towards adopting an individual actor perspective on teamwork effectiveness with an emphasis on the context of sourcing, explicating the effects of team-member knowledge, skills and abilities (KSAs), and examining how these relationships are moderated by a common learning experience of strategic sourcing masterclass.Design/methodology/approachBased on a cross-sectional survey, this study analyses a sample of 90 sourcing team members from a global aerospace manufacturing company using hierarchical regression analysis.FindingsThe results suggest that four of the five KSAs positively and significantly affect STE; the exception was collaborative problem solving. Masterclass learning outcomes were found to positively moderate the effects of these KSAs on STE, again exclusive of the collaborative problem-solving KSA.Research limitations/implicationsCross-sectional design focused only on the aerospace sector may affect generalizability. Further, longitudinal research designs would capture the effects of the common learning experience over an extended period.Practical implicationsSourcing team members could be selected based on having KSAs which significantly affect teamwork effectiveness. Training and development for sourcing teams should combine guided reflexivity and cross-training to deliver learning outcomes that create similar team mental models.Originality/valueThe study provides an individual team-member perspective on the functioning of sourcing teams which is absent in the extant research. It contributes to the very limited research base on skills in PSM.

Information Asymmetry in Business-to-Business Negotiations: A Game Theoretical Approach to Support Purchasing Decisions with Suppliers

The digital transformation confronts purchasing and supply management (PSM) with numerous new challenges, such as digital procurement objects and the information asymmetry between buyers and suppliers. Existing approaches contributing to PSM research (e. g., the selection of suppliers or the calculation of equilibrium prices) have in common that information regarding suppliers (e. g., production costs) must be well-known. However, this information is rarely accessible to purchasers due to the existing information asymmetry. This problem is addressed by a game-theoretical model based on a Stackelberg game to assist PSM in dealing with the information advantage of software suppliers. The applicability in practice is evaluated by a real-world case study from the automotive industry. The results show that the presented model can support decision-making in purchasing by a qualitative analysis of profit scenarios for different negotiation strategies. The model contributes to dismantling the information asymmetry and provides a basis for determining negotiation prices, also for digital procurement objects. This research motivates both supply and purchase managers to jointly optimize their product costs and thus increase their competitiveness on the market.

Econometrics and archival data: Reflections for purchasing and supply management (PSM) research

Purchasing and supply management (PSM) has faced unprecedented disruption over the past two years due to COVID-19 pandemic, input shortages, extended supplier lead times, record international transportation costs, and commodity price increases. Studying such phenomena is often best completed using archival data, such as data from government agencies or international organizations. This manuscript emphasizes how leveraging archival data often necessitates an iterative research process whereby researchers must first familiarize themselves with the data to ensure their scientific hypotheses can be appropriately tested. We further provide recommendations regarding how researchers should formulate generalized linear models (GLMs) to test theoretical predictions. Our approach emphasizes mapping scientific hypotheses to statistical hypotheses, as opposed to centering on issues of omitted variable bias (OVB). An illustrative example is provided where Census Bureau trade data are compiled to test whether the insurance and freight costs for waterborne containerized imports from Asian nations that enter through West Coast ports have risen more than the same products imported through East Coast ports. The research suggests the need to reorient how GLMs are formulated to better ensure researchers structure them to appropriately test their theory, in contrast to the current zeitgeist that overly emphasizes OVB.

Exploring the influence of ICT on sustainability in supply management: Evidence and directions for research

This paper explores the influence of information and communication technology (ICT) adoption on sustainability practices in purchasing and supply management (PSM) as well as its effects on purchasing performance. To accomplish this objective, a comprehensive review of the literature was conducted. The review revealed that little research has been carried out on the effects of digitalization on PSM, the unclear impact of sustainability initiatives on purchasing performance, and the dearth of (empirical) studies concerning ICT, sustainability, and PSM. To address these research gaps, hypotheses were defined and a conceptual framework was tested through a survey involving 131 companies operating in the Finnish economy. The results indicated that both operational and tactical procurement ICT systems positively influence sustainability practices in PSM. Moreover, sustainability practices supported by ICT systems were found to have a positive influence on purchasing performance. This paper differs from previous studies as it suggests a paradigm shift whereby technology is recognized as being integral to sustainability due to their reciprocal relationship, rather than being viewed simply as an enabler or barrier. The study also contributed to the literature by suggesting a novel framework that considers ICT and sustainability in PSM in an integrated way, overcoming the limitations of previous studies that considered them separately.

A mixed-methods approach to identifying buyers’ competencies for enabling innovation

ABSTRACT Purchasing and supply management (PSM) plays a pivotal role in increasing overall competitiveness as buyers interact with innovative suppliers and internal teams. The competence-based view encourages buyers to specialise in a few core competencies, but less is known about the range of competencies needed for innovation. Thus, this article aims to understand the individual competencies that PSM professionals need to bring added value to innovation. To address this gap, our research is first based on the findings of the state of the art. Then, mixed-methods research is conducted. It consists of exploratory analysis based on five in-depth case studies including 23 interviews complemented with an extended survey of 138 PSM professionals highly experienced in innovation. These professionals rated the importance of 31 competencies, out of which 18 were revealed thanks to the qualitative phase. The results of the second phase highlighted and expanded some competencies known and shown new ones.

Advancing purchasing as a design science: Publication guidelines to shift towards more relevant purchasing research

Due to rapidly changing business environments, purchasing and supply management (PSM) organisations are constantly confronted with new problems impacting organisational performance. PSM research can address these problems through design science research. Design science is also regarded as the science of the artificial. Design science research is a methodology that aims to systematically generate knowledge for the design, synthesis, testing, and evaluation of human-made artefacts (e.g., tools, interventions, policies) that solve practical problems. PSM artefacts such as the purchasing portfolio matrix invented by Kraljic (1983) represent a valuable opportunity to solve problems in the PSM discipline. However, our artificial-intelligence (AI)-based analysis of the discipline's flagship journal, the Journal of Purchasing and Supply Management (JPSM), indicates that design-oriented publications in PSM are underrepresented, accounting for less than 4% of the total publications. We argue that existing PSM research should be complemented with more design-oriented research, and address the following research question: How can PSM scholars publish more design-oriented research? Our objectives are to (1) provide arguments for advancing PSM as a design science, (2) nurture a better understanding of design science research as a methodology, and (3) propose publication guidelines that enable researchers to present design-oriented research in a management journal.

Application of artificial intelligence technology in the manufacturing process and purchasing and supply management

The complexity and interconnectivity of today’s manufacturing and purchasing and supply management (PSM) systems are paving the way for new technological advancements in the manufacturing and purchasing and supply sectors. Recent developments in artificial intelligence (AI) and the extensive amount of generated manufacturing data, known as big data, are allowing the integration of new kind of analytics tools in the supply chain, which are optimizing the way goods are produced. The focus of this paper is the application of such AI systems in the manufacturing and purchasing and supply management processes in factories, leading to concepts like smart factory and smart manufacturing, and the restructuring and digitalization on the production floor, dominated till to now by the human workforce.

Culture's consequences for purchasing: comparing purchasing job ad requirements from different European countries with cultural models

This research analyses the cultural differences in purchasing and supply management (PSM) job requirements from three European countries. The PSM job requirements in job advertisements have been compared with two cultural models: GLOBE and Hofstede. The universalism claim is tested based on comparing requirements in job advertisements for purchasers from Austria, Belgium, and the Netherlands. According to Hofstede, these three belong in different cultural clusters but just to one cultural area according to the GLOBE model. Results reveal that about 20% of the observed requirements were shared and about 80% were dissimilar. Cultural differences exist in job requirements and have important implications for research and education practice. The neglect to take cultural differences into account needs to be overcome, so that accurate and practically fitting results can be obtained since a universal purchaser does not to exist; country-specific cultural circumstances influence PSM job requirements.

Social desirability bias in PSM surveys and behavioral experiments: Considerations for design development and data collection

Social desirability issues are long known, but not long gone. Across major purchasing and supply management (PSM) research streams, surprisingly few empirical studies explicitly address social desirability bias (SDB), despite SDB constituting a potentially limiting factor. With regard to surveys and behavioral experiments as two of the most widely used empirical methods in PSM, SDB can represent a critical issue. A first step should therefore be to collect and fully report data on SDB in all such studies. The present note then continues by providing an overview of methodological considerations for PSM researchers to mitigate social desirability issues before they arise in their surveys and behavioral experiments. We describe eight potential mitigation approaches, namely disguising the study's research purpose, assuring anonymity and confidentiality, indirect questioning, adapting the wording of single items, broadening response modes, conducting preparatory cognitive interviews, using multiple sources, and applying multiple research methods. In describing this repertoire of preventive measures, we point authors and review teams to both the broader methodological literature and PSM studies that have used such approaches.

Institutional logic for sustainable purchasing and supply management: Concepts, illustrations, and implications for business strategy

AbstractAmidst the number of studies on sustainable purchasing and supply management (PSM), we have yet to learn how sustainability becomes a logic for organisations and their stakeholders. Thus, this paper offers an extended approach on the emergence of an institutional logic of sustainability (ILS). Our contribution includes the macro mechanisms supporting the robust and continuous adoption of an ILS for procurement. Three distinct trajectories of an ILS emerged from the literature, and their application to sustainable PSM is illustrated using real‐world examples. The trajectories rely upon the evolution of (1) institutional entrepreneurs or (2) PSM structures but also can happen through (3) the co‐evolution of both. By offering a conceptual model and a set of research propositions for future theory and empirical testing, this paper helps scholars and practitioners to advance their knowledge on managing purchasing departments according to sustainability values and making it a competitiveness factor. Lastly, this paper adds value to both implementation and formulation of sustainable business strategies as the application of our conceptual framework can lead to better strategic alignment of PSM practices.

The impact of digitalization on the future of the PSM function managing purchasing and innovation in new product development – Evidence from a Delphi study

Bringing innovative products to markets is essential for companies, especially in competitive environments. One of the driving forces for successful new product development (NPD) is the inclusion of the functions that form part of the process such as purchasing and supply management (PSM). While extensive research has been conducted on the role of procurement in promoting innovation, insufficient research on the future of the PSM function in NPD has been conducted. This study addresses this gap, considering increasing digitalization and its effect on the future PSM function managing purchasing and innovation. To explore the future of PSM in NPD, a Delphi survey with 91 experts from industry, academia, and politics or associations was performed. The results reveal that digitalization will influence the PSM function in NPD across different time horizons and forms depending on the subject area. While in many areas, an interplay between digital technologies and human PSM professionals is expected, in certain domains the PSM function is likely to lose added value compared to digital technologies. Furthermore, digitalization is expected to be a potential enabler of a stronger key innovation role for PSM in NPD but to also introduce new requirements such as data science capabilities.

A knowledge-based view of analytics capability in purchasing and supply management

PurposeThe purpose of this study is to elaborate on how analytics capability develops within the PSM function. This study is an in-depth exploration of how analytics capability develops within the purchasing and supply management (PSM) function.Design/methodology/approachA multiple case study was conducted of the PSM function of six case firms, in which primary data were collected through semi-structured interviews with PSM analytics stakeholders. The data were analyzed based on an analytics capability framework derived from the literature. Cases were chosen based on them having advanced PSM practices and ongoing analytics projects in the PSM area.FindingsThe findings shed light on how the firms develop their analytics capability in the PSM functional area. While we identify several commonalities in this respect, the authors also observe differences in how firms organize for analytics, bringing analytics and PSM decision-makers together. Building on the knowledge-based view of the firm, The authors offer a theoretical explanation of our observations, highlighting the user-driven side of analytics development, which has largely been unrecognized by prior literature. The authors also offer an explanation of the observed dual role that analytics takes in cross-functional initiatives.Research limitations/implicationsThe exploratory nature of our study limits the generalizability of our results. Further, our limited number of cases and interviewees indicate that there is still much to explore in the phenomenon of developing analytics capability.Practical implicationsOur findings can help firms gain a better understanding of how they could develop their analytics capability and what issues they need to consider when seeking leveraging data through analytics for PSM decisions.Originality/valueThis paper is, to the best knowledge of the authors, the first empirical study of analytics capability in PSM.

Robotic Process Automation in purchasing and supply management: A multiple case study on potentials, barriers, and implementation

Robotic Process Automation (RPA) has received growing attention within the digital transformation as this cutting-edge technology automates human behavior and promises high potentials. However, the adoption in purchasing and supply management (PSM) is still in its infancy and has hardly been explored, particularly in the public sector. Based on a multiple case study including 19 organizations of the public and private sector, this paper narrows that gap and presents comprehensive insights into potentials, barriers, suitable processes, and best practices and components for RPA implementation. The findings indicate that adoption depends on the organizations’ digital procurement readiness and maturity. Application areas of RPA enlarge with increasing experience and range from transactional and operative tasks within the procure-to-pay process to more strategic use cases in sourcing and supply relationship management. Potentials mainly comprise employee reliefs, cost savings, and increased operational efficiency and quality. We uncover multiple technical, organizational, and environmental barriers related to IT infrastructure and human resources, internal communication, financial resources, top management support, organizational structures, supplier-related issues, and government regulations. Furthermore, our study indicates several differences between the private and public sectors for RPA implementation. We outline implications for the emerging research on RPA and pivotal directions for organizational practice.

Covid-19 attacks the body of purchasing and supply management: A medical check of the immune system

Much like the immune system of the body, the ‘immune system’ of purchasing and supply management (PSM) is also affected by the Covid-19 virus. Medicine must hinder the spread of the virus and outbreak of disease, just as PSM must prevent risk events and handle supply disruptions. The existing debate on supply resilience and robustness can be demonstrated using this medical analogy. The purpose of this article was to perform a medical check of the ‘PSM immune system’ to identify lessons and research gaps when confronted with a low-frequency-high-impact event such as the pandemic. As a provocative note, this article identifies research gaps in elements of the immune system of PSM (e.g., helper cells – consultancy support or memory cells – feedback loops). The results call for a more holistic debate on the immune system of PSM. Two approaches for research on ‘conventional’ or ‘alternative’ risk management schools of thought are presented as a basis for future discourse on how to improve the PSM immune system.

How to train supply managers – Necessary and sufficient purchasing skills leading to success

The success of purchasing and supply management (PSM) largely depends on PSM professionals' skills levels. Past research assumed that one universal PSM professional type exists, and they have proposed one-size-fits-all PSM skillsets. However, PSM professionals have different objectives. Based on the data of an extensive survey conducted amongst European PSM professionals (n = 366), this study presents skillsets for seven objectives (reducing costs and improving delivery, quality, sustainability, strategic competitive advantage, supplier satisfaction and innovation). A differentiation is made between “necessary” and “sufficient” conditions for each objective's effectiveness. Within a new PSM-skills taxonomy, a hierarchy of skills is detected as one of the first categories that provide quantitative evidence that soft skills or personal skills are necessary conditions for carrying out hard skills or professional skills. Based on the proposed skillsets, university educators and firm trainers can draft teaching plans that support the intended outcome, while individual PSM professionals may get an orientation on how to develop their skills further.

Moving purchasing & supply management beyond a cost-focused identity

Practitioners and researchers recognize that purchasing and supply management (PSM) contributes value to business performance beyond reported cost reductions, though capturing and evaluating such contributions is often challenging. The goal of this research is to understand roadblocks impeding the recognition of PSM's contributions beyond cost reduction, and suggest potential solutions to these challenges. Social identity theory offers a conceptual framework to study PSM's self-identity and how it is perceived by others in the organization. Gaining acceptance for value-added metrics is critical to move perceptions of PSM's contribution beyond cost reduction and achieve its full potential. Social identity theory is used as a lens to assess the data and develop propositions. Using a qualitative interview method, the researchers identified important roadblocks hindering PSM's attainment of a broader value-based perception. PSM's identity is closely linked to cost-savings by itself, other functions and upper management. These perceptions are further reinforced by PSM through excessive cost reporting metrics. We provide two suggested solutions for PSM to expand its recognition beyond cost savings: 1) PSM must change its narrative and associated self-identity; and 2) PSM needs to develop metrics that are meaningful across multiple areas of the business.

Big data in purchasing and supply management: a research agenda

This study aims to synthesize knowledge about big data (BD) in the area of purchasing and supply management (PSM) and to develop an agenda for future research. A systematic literature review approach was employed, and 65 articles were synthesized based on a classification for BD in PSM to identify research gaps and opportunities. Literature in this area is descriptive and conceptual in nature, and modeling methods are favored. BD applications were identified for supplier selection, supply risk management, and supply visibility. Based on the complexity of access and use of BD, we identify a need for contextualized theory-building studies.

Acquisition of supply market intelligence – An information processing perspective

The capability to develop and sustain superior knowledge of markets and supply chains, or supply market intelligence (SMI), is an important element in increasing the strategic relevance of purchasing and supply management (PSM). This study draws on information processing theory (IPT) to shed light on how firms acquire SMI. In particular, the study aims to identify the drivers and mechanisms of information processing in SMI acquisition and to explore how the two constructs are related. Our findings emerged from an abductive multiple case study including 22 SMI tasks in eight case companies operating in various manufacturing industries. We find that the drivers of information processing needs in SMI acquisition are related either to uncertainty or equivocality. Uncertainty describes a situation in which decision-makers may be ignorant of a variable's value while equivocality describes a situation in which they may be ignorant of the variable's existence. We identify four structural mechanisms and three information technology mechanisms for information processing in the SMI context. We also find that equivocality seems to trump uncertainty in determining the use of the identified SMI acquisition mechanisms. In addition to elaborating IPT in the SMI context and exploring the theoretical foundations of SMI, we offer practitioners a framework for supporting the design of SMI practices in procurement organisations.

Implementing sustainable purchasing and supply management (SPSM): A Delphi study on competences needed by purchasing and supply management (PSM) professionals

This research is about a Delphi study that was conducted in the context of the development of a competence model for sustainable purchasing and supply management (SPSM). Based on the findings of a systematic literature review (SLR), it addresses the research gap in this area with the aim to foster the integration of sustainability in purchasing and supply management (PSM) in higher education and in professional training approaches for PSM professionals. The qualitative study was conducted with 16 Delphi experts in the field of PSM and sustainability, applying the critical incident technique (CIT). Together with the findings of the SLR, it led to a specific set of SPSM competences. The theoretical background is based on PSM research, educational sciences and organizational psychology.

Researching the future of purchasing and supply management: The purpose and potential of scenarios

Drawing on prior research, the value of scenario planning as a methodology for researching the future of purchasing and supply management (PSM) is explored. Using three criteria of research quality – rigour, originality and significance – it is shown how developing scenarios and analysing their implications present new, important research opportunities for PSM academics, practitioners, and leaders of the profession. Researching the future of PSM supports the identification of uncertainties and anticipates change across many units and levels of analysis of interest to PSM scholars and practitioners, such as the profession/discipline, markets/sectors, or organisations. Scenarios are particularly effective for: considering how the complex interaction of macro-environmental factors affects the PSM context; avoiding incremental thinking; surfacing assumptions and revealing significant blind spots. PSM research using scenarios aligns with Corley and Gioia's (2011) call for prescience-oriented research in which academics aim for more impactful research, enhancing sense-giving potential and theoretical relevance to practice, to better perform their adaptive role in society.