Gavin Meschnig and Lutz Kaufmann
A key driver of procurement effectiveness is the alignment of the procurement function with interlinked functions, such as R & D, engineering, production, and marketing. In…
Abstract
Purpose
A key driver of procurement effectiveness is the alignment of the procurement function with interlinked functions, such as R & D, engineering, production, and marketing. In the strategic management literature, the degree of alignment of individual team members on strategic objectives is termed “consensus.” The purpose of this paper is to investigate antecedents of consensus on objectives in cross-functional sourcing teams, the relationship between the degree of consensus and supplier performance, and moderators of the consensus-performance relationship. To do so, it ties strategic management literature to SCM and supplier selection research. As a result of these investigations, this research holistically introduces the concept of consensus to the discipline.
Design/methodology/approach
The study analyzes a sample of 88 sourcing teams (233 team members) from three manufacturing companies using regression analysis and moderated regressions.
Findings
Consensus on objectives for supplier selection among sourcing team members is positively related to the selection of higher performing suppliers. Sourcing team member experience is positively related to the level of consensus, and formalization of the selection process positively moderates the consensus-performance relationship. Team demographic diversity does not affect consensus among team members or supplier selection effectiveness.
Research limitations/implications
This study investigates consensus on objectives as a state within the sourcing team; it does not analyze how decision-making processes unfold in situations of low- or high-initial consensus among sourcing team members.
Practical implications
This paper provides insights into the drivers and effects of consensus on objectives and formalization of supplier selection in cross-functional setups.
Originality/value
This research addresses a gap in the SCM literature by investigating the role of consensus on objectives and thereby contributes to a better understanding of cross-functional sourcing team setups and effectiveness. The study introduces a key construct from the strategic management literature to supply management research, and empirical evidence shows how consensus can improve supplier selection performance.
Details
Keywords
Ha Ta, Pritosh Kumar, Adriana Rossiter Hofer and Yao “Henry” Jin
Supply chain (SC) professionals are increasingly working alongside business partners of diverse backgrounds, which has been argued to engender both innovation and creativity but…
Abstract
Purpose
Supply chain (SC) professionals are increasingly working alongside business partners of diverse backgrounds, which has been argued to engender both innovation and creativity but also found as potentially detrimental to SC relationships and performance. To reconcile these views, this study explores two mechanisms – supplementary (similarity) and complementary fits – at the surface (observable traits) and deep (unobservable characteristics) levels and their impact on a focal firm representative’s perception of a SC partner’s trustworthiness.
Design/methodology/approach
Model was tested using survey data from 285 managers involved in interorganizational SC relationships.
Findings
Results indicate that a focal firm representative’s perception of supplementary and complementary fits with a SC partner positively impacts their perception of the partner’s trustworthiness. However, the effects of similarity at both surface and deep levels and complementarity weaken each other.
Practical implications
Understanding the mechanisms of diversity in SC relationships is crucial for fostering trustworthiness and achieving organizational objectives. Firms should evaluate both supplementary and complementary fits when hiring or assigning roles. Embracing a complementary fit not only promotes diversity but also mitigates the negative impact of similarity bias, ultimately strengthening trustworthiness within the organization's SC ecosystem.
Originality/value
By simultaneously examining individual and combined effects of two unique mechanisms of supplementarity and complementarity at the surface and deep levels, this study sheds light on inconsistent findings of the effects of diversity in the SCM literature.