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1 – 10 of 28Andrea 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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Rita Maria Difrancesco, Davide Luzzini and Andrea S. Patrucco
Companies' ability to build sustainable supply chains and achieve strategic sustainability objectives largely depends on their supply network characteristics and the nature of the…
Abstract
Purpose
Companies' ability to build sustainable supply chains and achieve strategic sustainability objectives largely depends on their supply network characteristics and the nature of the relationships with strategic suppliers. This poses the question of how purchasing departments can help to translate this sustainability commitment into performance benefits. The authors focus the attention on buyer-supplier information sharing practices and study how the availability of information interplays with the purchasing realized absorptive capacity (PRAC) to positively impact performance (operational, environmental and social).
Design/methodology/approach
The study collected data from 305 procurement executives in four European countries and tested the hypotheses empirically using structural equation modeling. Mediation analysis is used to test the effect of PRAC on the relationship between buyer-supplier information sharing and performance.
Findings
The results show that increasing buyer-supplier information sharing is sufficient to obtain a positive impact on operational performance. To improve purchasing sustainability performance, companies need to develop their PRAC to adequately transform and exploit external information and identify opportunities in the environmental and social areas. Thanks to these purchasing capabilities, organizations can overcome potential trade-offs between different performance dimensions.
Originality/value
In the context of collaborative buyer-supplier relationships, this study is one of the first to propose purchasing knowledge management capabilities (i.e. PRAC) as a key factor to improve multiple performance dimensions. Additionally, it captures different sustainability aspects, concluding that organizations can improve purchasing operational, environmental and social performances by implementing appropriate information sharing mechanisms with suppliers and developing their PRAC.
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Christine Mary Harland, Louise Knight, Andrea S. Patrucco, Jane Lynch, Jan Telgen, Esmee Peters, Tünde Tátrai and Petra Ferk
The procurement and supply of crucial healthcare products in the early stages of the COVID-19 emergency were chaotic. To prepare for future crises, we must be able to describe…
Abstract
Purpose
The procurement and supply of crucial healthcare products in the early stages of the COVID-19 emergency were chaotic. To prepare for future crises, we must be able to describe what went wrong, and why, and map out ways to build agility and resilience. How can this be done effectively, given the highly complex and diverse network of actors across governments, care providers and supply chains, and the extreme uncertainty and dynamism in the procurement system and supplier markets? The purpose of this study was to capture learning from practitioners in “real time” in a way that could frame and inform capacity building across healthcare systems with varying procurement and supply management maturity.
Design/methodology/approach
This exploratory study involved interviews with 58 senior public procurement practitioners in central and regional governments, NGOs and leaders of professional organizations from 23 countries, very early in the COVID crisis. Following the first, inductive phase of analysis leading to five descriptive dimensions, the awareness-motivation-capability (A-M-C) framework was applied in a further round of coding, to understand immediate challenges faced by procurement practitioners, how the complex, multi-level procurement system that shaped their motivations to respond and critical capabilities required to face these challenges.
Findings
Developments across 23 countries and practitioners' learning about procurement and supply in the pandemic crisis can be captured in five overarching themes: governance and organization, knowledge and skills, information systems, regulation and supply base issues. Together these themes cover the strengths and gaps in procurement and supply capability encountered by procurement leaders and front-line personnel. They highlight the various facets of structure, resource and process which constitute organizational capability. However, to account better for the highly dynamic situation characterized by both unprecedented rivalry and cooperation, analysts must also pay attention to actors' emerging awareness of the situation and their rapidly changing motivations.
Originality/value
The application of the A-M-C framework is unique in the healthcare supply chain and disaster management literature. It enables a comprehensive overview of healthcare procurement from a system perspective. This study shows how increasing system preparedness for future emergencies depends both on developing critical capabilities and understanding how awareness and motivation influence the effective deployment of those capabilities.
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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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Edgar Ramos, Andrea S. Patrucco and Melissa Chavez
Considering the unprecedented supply chain disruptions due to the COVID-19 pandemic, especially in the agri-food sector, the possession of dynamic capabilities (DCs)  
Abstract
Purpose
Considering the unprecedented supply chain disruptions due to the COVID-19 pandemic, especially in the agri-food sector, the possession of dynamic capabilities (DCs) – particularly, the need for higher agility – seems to be the key to survival in highly uncertain environments. This study aims to use the dynamic capability view (DCV) theory to analyze how three key supply chain capabilities – organizational flexibility, integration and agility – should be combined to obtain the desired supply chain performance.
Design/methodology/approach
The authors designed a conceptual model in which the relationships between these three key capabilities and supply chain performance were hypothesized. The model was first tested through partial least square regression using survey data collected from 98 members of the Peruvian coffee supply chain. A fuzzy-set qualitative comparative analysis (fsQCA) was conducted to uncover how DCs could be combined in successful supply chain configurations.
Findings
The authors show that organizational flexibility is a driver of higher agility in agri-food supply chains, together with external and internal supply chain integration, that have a direct impact on agility, which positively affects supply chain performance. Higher levels of supply chain agility are necessary but insufficient to guarantee high performance, as sufficiency is reached when both integration (internal and/or external) and agility are present.
Originality/value
This study represents a pioneering attempt to apply the DCV theory to agri-food supply chains – characterized by many sources of uncertainty. All the DCs are included within the same model and the joint use of PLS regression and fsQCA provides evidence about the relationships between DCs and how they can empower agri-food supply to obtain the desired performance.
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Federica Ciccullo, Margherita Pero and Andrea S. Patrucco
The theory of complex adaptive systems (CASs) represents an interesting perspective to study the characteristics of circular supply chains (CSCs). In this regard, the current…
Abstract
Purpose
The theory of complex adaptive systems (CASs) represents an interesting perspective to study the characteristics of circular supply chains (CSCs). In this regard, the current literature lacks evidence regarding coordination and integration mechanisms, characteristics of the environment and emerging system properties of CSCs. This paper aims to fill this gap and focuses on how and why companies design (i.e. configure and coordinate) their CSCs and what value these design choices help to create across different industries.
Design/methodology/approach
The authors use a multiple case study approach and analyze data collected from a sample of five sustainable start-ups operating in the fashion and construction industries in Italy to better understand how these companies design (i.e. configure and coordinate) their CSCs.
Findings
Results reveal that in the two industries under investigation, the design of CSCs built around open and closed–loop logic is triggered by the intention to solve a negative sustainability impact. The sustainability impact determines whether the value is restored within the same supply chain, in another, or inside or outside the same industry. Interestingly, start-ups appear to coordinate other CSC actors with three leading roles: (1) orchestrator, (2) integrated orchestrator and (3) circular manufacturer. The coordination role of the start-ups differs in each supply chain configuration based on the level of vertical integration of manufacturing activities.
Originality/value
From a theoretical perspective, the authors' results expand previous supply chain management (SCM) literature by presenting an empirical analysis of the configuration and coordination of CSCs, and discussing the drivers for creating such circularity from a CAS perspective. From a managerial perspective, the authors offer a practical experience to entrepreneurs on how to transform circular and sustainable business model aspirations into CSC practices.
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Andrea Stefano Patrucco, Davide Luzzini and Stefano Ronchi
The paper aims to evaluate the state of the literature on public procurement through examination of the works published in the Journal of Public Procurement from 2001 to 2014. 231…
Abstract
The paper aims to evaluate the state of the literature on public procurement through examination of the works published in the Journal of Public Procurement from 2001 to 2014. 231 research outputs were collected and analyzed (with regard to, e.g., the background theory used, research method, and content of the papers), providing a overview of prior research topics and findings and identifying main gaps in the existing literature. This type of study is unique, as a broad literature review related to public procurement does not currently exist; therefore, the work has been designed with the intention to a) synthetize the prior research on public procurement; b) provide researchers with a structural framework in which future research on public procurement topics may be oriented; c) identify promising and active areas for future research.
Andrea Stefano Patrucco, Liliana Rivera, Christopher Mejía-Argueta and Yossi Sheffi
In line with the knowledge-based view of organizations, this paper aims to analyze how supply chain (SC) employees contribute to the creation of competitive advantage through…
Abstract
Purpose
In line with the knowledge-based view of organizations, this paper aims to analyze how supply chain (SC) employees contribute to the creation of competitive advantage through knowledge acquisition and utilization activities. The authors consider SC employees' skills and competencies, their external network of relationships, their job satisfaction and company investments in training and test how they relate to SC-level outcomes (i.e. SC growth).
Design/methodology/approach
The authors design a research model including the aforementioned variables, and the authors apply structural equation modeling (SEM) to survey data collected from 246 SC professionals in Latin America. The authors also use multi-group analysis to evaluate how the relationships between these variables change with different levels of company investment in training.
Findings
The results show that a broad professional network of relationships contributes to increasing the skills and competencies of SC professionals, which, in turn, impact job satisfaction and SC performance. This reinforces the value of investing in skilled human talent, who can contribute to knowledge acquisition, utilization, and, ultimately, to SC competitiveness. Companies that invest more in training to develop their SC employees benefit from stronger SC outcomes.
Originality/value
This study contributes to broadening the understanding of the impact of human resource management (HRM) on supply chain management (SCM). One of the added original foci of this research is the emphasis on developing countries where these HRM-to-SCM performance relationships have not been studied before.
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Andrea Patrucco, Federico Frattini and Anthony Di Benedetto
In the wake of the growing popularity of the open innovation approach, leveraging suppliers as external sources of innovation has attracted increasing interest from scholars and…
Abstract
Purpose
In the wake of the growing popularity of the open innovation approach, leveraging suppliers as external sources of innovation has attracted increasing interest from scholars and practitioners. Successful supplier involvement largely depends on an effective performance measurement process, but both supply chain management and innovation management literature have paid limited attention to this aspect. This paper aims to fill this gap by illustrating how companies measure the performance of the suppliers involved in their innovation projects and what role is played by the purchasing department.
Design/methodology/approach
This study interviews project stakeholders from nine different organizations acting as focal companies in the supply chains of various industries. This paper complements this on-field information with a vast amount of data collected from secondary project documents. Structured data coding and analysis allow us to discuss how companies redesign their performance measurement systems to ease the collaboration with suppliers in innovation and what factors underly these decisions.
Findings
The findings show that, in many cases, supplier performance measurement systems deviate from their typical characteristics to support collaboration in innovation projects. They integrate quantitative and qualitative measures, include contributions from different project stakeholders and are oriented toward high visibility and transparency with suppliers. A more substantial redesign of these systems is favored when purchasing is assigned to strategic project responsibilities and possesses higher absorptive capacity.
Originality/value
The results complement the knowledge for the supply chain management field, where supplier performance measurement systems have been discussed in the context of traditional buyer-supplier relationships, but not comprehensively in innovation projects and not considering the role of purchasing. Findings also contribute to the innovation management literature, which has mostly focused on what aspects need to be measured for innovation partners, rather than how to manage the performance measurement process in practice.
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Vieri Maestrini, Andrea Stefano Patrucco, Davide Luzzini, Federico Caniato and Paolo Maccarrone
Grounding on resource orchestration theory, this paper aims to study the relationship between the way buying companies use their supplier performance measurement systems and the…
Abstract
Purpose
Grounding on resource orchestration theory, this paper aims to study the relationship between the way buying companies use their supplier performance measurement systems and the performance improvements obtained from suppliers, with relationship trust identified as a mediator in the previous link.
Design/methodology/approach
The authors design a conceptual model and test it through structural equation modelling on a final sample of 147 buyer-supplier responses, collected by means of a dyadic survey.
Findings
Results suggest that the buyer company may achieve the most by balancing a diagnostic and interactive use of the measurement system, as they are both positively related to supplier performance improvement. Furthermore, relationship trust acts as a mediator in case of the interactive use, but not for the diagnostic. This type of use negatively affects relationship trust, due to its mechanistic use in the buyer-supplier relationship.
Originality/value
The authors’ results contribute to the current academic debate about supplier performance measurement system design and use by analyzing the impact of different supplier performance measurement system uses, and highlighting their relative impact on relationship trust and supplier performance improvement. From a methodological perspective, adopting a dyadic data collection process increases the robustness of the findings.
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