Abstract
Environmental uncertainty is a fact in today’s supply markets. In this paper we develop a model of managing purchasing markets through a building of a global purchasing portfolio, finalized to improve both supply chain relationship quality and supply chain performance. The research design was a multiple case study with internal and external validity checks, within case analysis and cross-case comparisons, based on a research framework that scrutinises the relationships between supply chain contextual constraints and supplier’s segmentation processes. Our analysis yields several interesting findings. First of all empirical evidence indicates the factors considered as potential influencers on the collaboration process competencies of medium enterprises. Our results demonstrate that important resources for innovation may be accessible through innovative supply relationships.
References
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Aron, R. and Singh, J. (2005), “Getting offshoring right”, Harvard Business Review, 83 (12), 135-143.
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Baier, C., Hartman, E., and Moser, R. (2008), “Strategic alignment and purchasing efficacy: an exploratory analysis of their impact on financial performance”, Journal of Supply Chain Management, 44 (4), 36-52.
Baines, T., Kay, G., Adesola, S. and Higson, M. (2005), “Strategic positioning: an integrated decision process for manufacturers”, International Journal of Operations & Production Management, Vol. 25 No 2, 180-201.
Barney, J. (1991), “Firm resources and sustained competitive advantage”, Journal of Management, 17 (1), 99-120.
Brandenburg, M., Govindan, K., Sarkis, J. and Seuring, S. (2014), “Quantitative models for sustainable supply chain management: Developments and directions”, European Journal of Operational Research, 233 (2), 299-312.
Braziotis, C., Bourlakis, M., Rogers, H., and Tannock, J. (2013), “Supply chains and supply networks: distinctions and overlaps”, Supply Chain Management: An International Journal, 18 (6), 644-652.
Broedner, P., Kinkel, S., and Lay, G. (2009), “Productivity effects of outsourcing: new evidence on the strategic importance of vertical integration decisions”, International Journal of Operation & Production Management, 29 (2), 127-150.
Cannon, J. P., and Perreault, W. D. (1999), “Buyer-seller relationships in business markets”, Journal of Marketing Research, 36 (4), 439-460.
Day, M., Fawcett, S. E., Fawcett, A. M., and Magnan, G. M. (2013), “Trust and relational embeddedness: Exploring a paradox of trust pattern development in key supplier relationships”, Industrial Marketing Management, 42 (2), 152-165.
Eisenhardt, K. M. and Schoonhoven, C. B. (1996), “Resource-based view of strategic alliance formation: Strategic and social effects in entrepreneurial firms”, Organization Science, 7 (2), 136-150.
Ellram, L. M. (1996), “The use of the case study method in logistics research”, Journal of Business Logistics, 17 (2), 93-138.
Eltantawy, R. A. and Giunipero, L. (2013), “An empirical examination of strategic sourcing dominant logic: Strategic sourcing centricity”, Journal of Purchasing & Supply Management, 19 (4), 215-226.
Eroglu, C. and Hofer, C. (2011), “Lean, leaner, too lean? The inventory-performance link revisited”, Journal of Operations Management, 32 (6), 347-356.
Feisel, E., Hartmann, E. and Giunipero, L. (2011), “The importance of the human aspect in the supply function: strategies for developing PSM proficiency”, Journal of Purchasing and Supply Chain Management, 17 (1), pp. 54-67.
Flynn, B.B., Huo, B. and Zhao, X. (2010), “The impact of supply chain integration on performance: a contingency and configuration approach”, Journal of Operations Management, 28 (1), 58-71.
Gelderman, C. J. and Semeijn, J. (2006), “Managing the global supply base through purchasing portfolio management”, Journal of Purchasing and Supply Management, 12 (4), 209-217.
Gottfredson, M., Puryear, R. and Phillips, S. (2005), “Strategic sourcing-from periphery to the core”, Harvard Business Review, 83 (2), 132-139.
Grogaard, B. (2012), “Alignment of strategy and structure in international firms: an empirical examination”, International Business Review, 21 (3), 397-407.
Hahn, G. J., and Kuhn, H. (2011), “Optimising a value-based performance indicator in mid-term sales and operations planning”, Journal of the Operational Research Society, 62 (3), 515-525.
Henneberg, S., Mouzas, S. and Naudé, P. (2010), “Sense-making and management in business networks: Some observations, considerations, and a research agenda”, Industrial Marketing Management, 39 (3), 355-360.
Holcomb, T. and Hitt, M. (2007), Towards a model of strategic outsourcing”, Journal of Operations Management, 25 (2), 464-481.
Holmen, E., Aune, T. B. and Pedersen, A. (2013), “Network pictures for managing key supplier relationships”, Industrial Marketing Management, 42 (2), 139-151.
Holweg, M., and Pil, F. K. (2008), Theoretical Perspectives on the Coordination of Supply Chain, Journal of Operations Management, 26 (3), 389-406.
Holweg, M. and Helo, P. (2014), “Defining value chain architectures: linking strategic value creation to operational supply chain design”, International Journal of Production Economics, 147 part B (January), 230-238.
Inemek, A. and Matthyssens, P. (2013), “The impact of buyer–supplier relationships on supplier innovativeness: An empirical study in cross-border supply networks”, Industrial Marketing Management, 42 (4), 580-594.
Jick, T. D. (1979), “Mixing Qualitative and Quantitative Methods: Triangulation in Action”, Administrative Science Quarterly, 24 (4), 602-611.
Jüttner, U., and Peck, H., Christopher, M. (2003), “Supply chain risk management. Outlining an agenda for future research”, International Journal of Logistics: Research and Application, Vol. 6, No 4, pp. 197-210.
Kang, M., Wu, X., Hong, P., Park, K., and Park, Y. (2014), “The Role of Organizational Control in Outsourcing Practices: An empirical Study”, Journal of Purchasing and Supply Management, 20 (3), 177-185.
Kleemann, F. C. and Essig, M. (2013), “A provider’s perspective on supplier relationships in performance-based contracting”, Journal of Purchasing & Supply Management, 19 (3), 185-198.
Knight, L., Tu, Y. H. and Preston, J. (2014), “Integrating skills profiling and purchasing portfolio management: an opportunity for building purchasing capability”, International Journal of Production Economics, 147 part B (January), 271-283.
Kumar, S., Zampogna, P. and Nansen, J. (2010), “A closed loop outsourcing decision model for developing effective manufacturing strategy”, International Journal of Production Research, 48 (7), 1873-1900.
Lambert, D. M., and Schwieterman, M. A. (2012), “Supplier relationship management as a macro business process”, Supply Chain Management: An International Journal, 17 (3), 337-352.
Liao, Y., Hong, P., and Rao, S. S. (2010), Supply Management, Supply Flexibility and Performance Outcomes: An empirical Investigation of Manufacturing Firms, Journal of Supply Chain Management, 46 (3), 6-22.
Makkonen, H., and Olkkonen, R. (2013), “The conceptual locus and functionality of key supplier management: A multi-dyadic qualitative study”, Industrial Marketing Management, 42 (2), 189-201.
McIvor, R. (2010), “The influence of capability considerations on the outsourcing decision: the case of a manufacturing company”, International Journal of Production Research, 47 (17), 5031-5052.
Miller, C., Cardinal, L., and Glick, W. (1997), “Retrospective reports in organisational research: A re-examination of recent evidence”, Academy of Management Journal, 40 (1), 189-204.
Narasimhan, R., and Das, A. (2001), “The impact of purchasing integration and practices on manufacturing performance”, Journal of Operations Management, 19 (5), 593-609.
Ng, L., and Nudurupati, S. S. (2010), “Outcome-based service contracts in the defence industry: mitigating the challenges”, Journal of Service Management, 21 (5), 656-674.
Parmar, B. L., Freeman, R. E., Harrison, J. S., Wicks, A. C., Purnell, L., and De Colle, S. (2010), “Stakeholder theory: The state of the art”, The Academy of Management Annals, 2 (1), 403-445.
Peteraf, M. A. (1993), “The Cornerstone of Competitive Advantage: A Resource-Based Theory”, Strategic Management Journal, 1 (2), 179-191.
Petersen, K. J., Handfield, R. B. and Ragatz, G. L. (2003), “A model of supplier integration into new product development”, Journal of Product Innovation Management, 20 (4), 284-299.
Rebolledo, C., and Jobin, M. H. (2013), “Manufacturing and supply alignment: are different manufacturing strategies linked to different purchasing practices?”, International Journal of Production Economics, 146 (1), 219-226.
Rehme, J., Nordigården, D., Brege, S. and Chicksand, D. (2013), “Outsourcing to a non-developed supplier market: The importance of operational aspects in outsourcing”, Journal of Purchasing & Supply Management, 19 (4), 227-237.
Schneider, L. and Wallenburg, C. M. (2013), “50 years of research on organizing the purchasing function: do we need any more?”, Journal of Purchasing & Supply Management, 19 (3), 144-164.
Srinivasan, M., Mukherjee, D. and Gaur, A. S. (2011), “Buyer-Supplier Partnership Quality and Supply Chain Performance: Moderating Role of Risks, and Environmental Uncertainty”, European Management Journal, 29 (4), 260-271.
Stevenson, M., and Spring, M. (2009), Supply Chain Flexibility: An inter-firm empirical Study, International Journal of Operation Product Management, 29 (9), 946-971.
Stuart, I., McCutcheon, D., Handfield, R., McLachlin, R. and Samson, D. (2002), “Effective Case Research in Operations Management: A Process Perspective”, Journal of Operations Management, 20 (5), 419-433.
Teece, D. J. (2007), “Explicating dynamic capabilities. The nature and the microfoundations of sustainable enterprise performance”, Strategic Management Journal, 28 (13), 1319-1350.
Trkman, P., Stemberger, M., Jaklic, J., Groznik, A. (2007), “Process approach to supply chain integration”, Supply Chain Management. An International Journal, 12 (12), 116-128.
Vachon, S., Halley, A. and Beaulieu, M. (2009), “Aligning competitive priorities in the supply chain: the role of interactions with suppliers”, International Journal of Operations and Production Management, 29 (4), 322-340.
Van de Vijver, M., Vos, B. and Akkermans, A. (2011), “A tale of two partnerships: Socialization in the development of buyer–supplier relationships”, Journal of Supply Chain Management, Vol. 47 No. 4, pp. 23-43.
Vanpoucke, E., Vereecke A. and Boyer, K. K. (2014), “Triggers and patterns of integration initiatives in successful buyer–supplier relationships”, Journal of Operations Management, 32 (1), 15-33.
Vilko, J. P., and Hallikas, J. M. (2012), “Risk assessment in multimodal supply chains”, International Journal of Production Economics, 140 (2), 586-595.
Voss, C. A., Tsikriktsis, N. and Frohlich, M. (2002), “Case Research in Operations Management”, International Journal of Operations & Production Management, 22 (2), 195-219.
Walker, H., Knight, L., Harland, C. (2005), “Outsourced services and imbalanced supply markets”, European Management Journal, 24 (1), 95-105.
Westphal, P. and Sohal, A. (2013), “Taxonomy of outsourcing decision models”, Production Planning & Control: The Management of Operations, 24 (4-5), 347-358.
Williamson, O. E. (1985), The Economic Institutions of Capitalism, Free Press, New York.
Yan, T. and Dooley, K. J. (2013), “Communication intensity, goal congruence, and uncertainty in buyer–supplier new product development”, Journal of Operations Management, 31 (7), 523-542.
Yin, R. (2008), Case Study Research: Designs and Methods, 3rd ed., Sage Publications, London.
Aron, R. and Singh, J. (2005), “Getting offshoring right”, Harvard Business Review, 83 (12), 135-143.
Azadegan, A. (2011), “Benefiting from supplier operational innovativeness: The influence of supplier evaluations and absorptive capacity”, Journal of Supply Chain Management, 47(2), 47-64.
Baier, C., Hartman, E., and Moser, R. (2008), “Strategic alignment and purchasing efficacy: an exploratory analysis of their impact on financial performance”, Journal of Supply Chain Management, 44 (4), 36-52.
Baines, T., Kay, G., Adesola, S. and Higson, M. (2005), “Strategic positioning: an integrated decision process for manufacturers”, International Journal of Operations & Production Management, Vol. 25 No 2, 180-201.
Barney, J. (1991), “Firm resources and sustained competitive advantage”, Journal of Management, 17 (1), 99-120.
Brandenburg, M., Govindan, K., Sarkis, J. and Seuring, S. (2014), “Quantitative models for sustainable supply chain management: Developments and directions”, European Journal of Operational Research, 233 (2), 299-312.
Braziotis, C., Bourlakis, M., Rogers, H., and Tannock, J. (2013), “Supply chains and supply networks: distinctions and overlaps”, Supply Chain Management: An International Journal, 18 (6), 644-652.
Broedner, P., Kinkel, S., and Lay, G. (2009), “Productivity effects of outsourcing: new evidence on the strategic importance of vertical integration decisions”, International Journal of Operation & Production Management, 29 (2), 127-150.
Cannon, J. P., and Perreault, W. D. (1999), “Buyer-seller relationships in business markets”, Journal of Marketing Research, 36 (4), 439-460.
Day, M., Fawcett, S. E., Fawcett, A. M., and Magnan, G. M. (2013), “Trust and relational embeddedness: Exploring a paradox of trust pattern development in key supplier relationships”, Industrial Marketing Management, 42 (2), 152-165.
Eisenhardt, K. M. and Schoonhoven, C. B. (1996), “Resource-based view of strategic alliance formation: Strategic and social effects in entrepreneurial firms”, Organization Science, 7 (2), 136-150.
Ellram, L. M. (1996), “The use of the case study method in logistics research”, Journal of Business Logistics, 17 (2), 93-138.
Eltantawy, R. A. and Giunipero, L. (2013), “An empirical examination of strategic sourcing dominant logic: Strategic sourcing centricity”, Journal of Purchasing & Supply Management, 19 (4), 215-226.
Eroglu, C. and Hofer, C. (2011), “Lean, leaner, too lean? The inventory-performance link revisited”, Journal of Operations Management, 32 (6), 347-356.
Feisel, E., Hartmann, E. and Giunipero, L. (2011), “The importance of the human aspect in the supply function: strategies for developing PSM proficiency”, Journal of Purchasing and Supply Chain Management, 17 (1), pp. 54-67.
Flynn, B.B., Huo, B. and Zhao, X. (2010), “The impact of supply chain integration on performance: a contingency and configuration approach”, Journal of Operations Management, 28 (1), 58-71.
Gelderman, C. J. and Semeijn, J. (2006), “Managing the global supply base through purchasing portfolio management”, Journal of Purchasing and Supply Management, 12 (4), 209-217.
Gottfredson, M., Puryear, R. and Phillips, S. (2005), “Strategic sourcing-from periphery to the core”, Harvard Business Review, 83 (2), 132-139.
Grogaard, B. (2012), “Alignment of strategy and structure in international firms: an empirical examination”, International Business Review, 21 (3), 397-407.
Hahn, G. J., and Kuhn, H. (2011), “Optimising a value-based performance indicator in mid-term sales and operations planning”, Journal of the Operational Research Society, 62 (3), 515-525.
Henneberg, S., Mouzas, S. and Naudé, P. (2010), “Sense-making and management in business networks: Some observations, considerations, and a research agenda”, Industrial Marketing Management, 39 (3), 355-360.
Holcomb, T. and Hitt, M. (2007), Towards a model of strategic outsourcing”, Journal of Operations Management, 25 (2), 464-481.
Holmen, E., Aune, T. B. and Pedersen, A. (2013), “Network pictures for managing key supplier relationships”, Industrial Marketing Management, 42 (2), 139-151.
Holweg, M., and Pil, F. K. (2008), Theoretical Perspectives on the Coordination of Supply Chain, Journal of Operations Management, 26 (3), 389-406.
Holweg, M. and Helo, P. (2014), “Defining value chain architectures: linking strategic value creation to operational supply chain design”, International Journal of Production Economics, 147 part B (January), 230-238.
Inemek, A. and Matthyssens, P. (2013), “The impact of buyer–supplier relationships on supplier innovativeness: An empirical study in cross-border supply networks”, Industrial Marketing Management, 42 (4), 580-594.
Jick, T. D. (1979), “Mixing Qualitative and Quantitative Methods: Triangulation in Action”, Administrative Science Quarterly, 24 (4), 602-611.
Jüttner, U., and Peck, H., Christopher, M. (2003), “Supply chain risk management. Outlining an agenda for future research”, International Journal of Logistics: Research and Application, Vol. 6, No 4, pp. 197-210.
Kang, M., Wu, X., Hong, P., Park, K., and Park, Y. (2014), “The Role of Organizational Control in Outsourcing Practices: An empirical Study”, Journal of Purchasing and Supply Management, 20 (3), 177-185.
Kleemann, F. C. and Essig, M. (2013), “A provider’s perspective on supplier relationships in performance-based contracting”, Journal of Purchasing & Supply Management, 19 (3), 185-198.
Knight, L., Tu, Y. H. and Preston, J. (2014), “Integrating skills profiling and purchasing portfolio management: an opportunity for building purchasing capability”, International Journal of Production Economics, 147 part B (January), 271-283.
Kumar, S., Zampogna, P. and Nansen, J. (2010), “A closed loop outsourcing decision model for developing effective manufacturing strategy”, International Journal of Production Research, 48 (7), 1873-1900.
Lambert, D. M., and Schwieterman, M. A. (2012), “Supplier relationship management as a macro business process”, Supply Chain Management: An International Journal, 17 (3), 337-352.
Liao, Y., Hong, P., and Rao, S. S. (2010), Supply Management, Supply Flexibility and Performance Outcomes: An empirical Investigation of Manufacturing Firms, Journal of Supply Chain Management, 46 (3), 6-22.
Makkonen, H., and Olkkonen, R. (2013), “The conceptual locus and functionality of key supplier management: A multi-dyadic qualitative study”, Industrial Marketing Management, 42 (2), 189-201.
McIvor, R. (2010), “The influence of capability considerations on the outsourcing decision: the case of a manufacturing company”, International Journal of Production Research, 47 (17), 5031-5052.
Miller, C., Cardinal, L., and Glick, W. (1997), “Retrospective reports in organisational research: A re-examination of recent evidence”, Academy of Management Journal, 40 (1), 189-204.
Narasimhan, R., and Das, A. (2001), “The impact of purchasing integration and practices on manufacturing performance”, Journal of Operations Management, 19 (5), 593-609.
Ng, L., and Nudurupati, S. S. (2010), “Outcome-based service contracts in the defence industry: mitigating the challenges”, Journal of Service Management, 21 (5), 656-674.
Parmar, B. L., Freeman, R. E., Harrison, J. S., Wicks, A. C., Purnell, L., and De Colle, S. (2010), “Stakeholder theory: The state of the art”, The Academy of Management Annals, 2 (1), 403-445.
Peteraf, M. A. (1993), “The Cornerstone of Competitive Advantage: A Resource-Based Theory”, Strategic Management Journal, 1 (2), 179-191.
Petersen, K. J., Handfield, R. B. and Ragatz, G. L. (2003), “A model of supplier integration into new product development”, Journal of Product Innovation Management, 20 (4), 284-299.
Rebolledo, C., and Jobin, M. H. (2013), “Manufacturing and supply alignment: are different manufacturing strategies linked to different purchasing practices?”, International Journal of Production Economics, 146 (1), 219-226.
Rehme, J., Nordigården, D., Brege, S. and Chicksand, D. (2013), “Outsourcing to a non-developed supplier market: The importance of operational aspects in outsourcing”, Journal of Purchasing & Supply Management, 19 (4), 227-237.
Schneider, L. and Wallenburg, C. M. (2013), “50 years of research on organizing the purchasing function: do we need any more?”, Journal of Purchasing & Supply Management, 19 (3), 144-164.
Srinivasan, M., Mukherjee, D. and Gaur, A. S. (2011), “Buyer-Supplier Partnership Quality and Supply Chain Performance: Moderating Role of Risks, and Environmental Uncertainty”, European Management Journal, 29 (4), 260-271.
Stevenson, M., and Spring, M. (2009), Supply Chain Flexibility: An inter-firm empirical Study, International Journal of Operation Product Management, 29 (9), 946-971.
Stuart, I., McCutcheon, D., Handfield, R., McLachlin, R. and Samson, D. (2002), “Effective Case Research in Operations Management: A Process Perspective”, Journal of Operations Management, 20 (5), 419-433.
Teece, D. J. (2007), “Explicating dynamic capabilities. The nature and the microfoundations of sustainable enterprise performance”, Strategic Management Journal, 28 (13), 1319-1350.
Trkman, P., Stemberger, M., Jaklic, J., Groznik, A. (2007), “Process approach to supply chain integration”, Supply Chain Management. An International Journal, 12 (12), 116-128.
Vachon, S., Halley, A. and Beaulieu, M. (2009), “Aligning competitive priorities in the supply chain: the role of interactions with suppliers”, International Journal of Operations and Production Management, 29 (4), 322-340.
Van de Vijver, M., Vos, B. and Akkermans, A. (2011), “A tale of two partnerships: Socialization in the development of buyer–supplier relationships”, Journal of Supply Chain Management, Vol. 47 No. 4, pp. 23-43.
Vanpoucke, E., Vereecke A. and Boyer, K. K. (2014), “Triggers and patterns of integration initiatives in successful buyer–supplier relationships”, Journal of Operations Management, 32 (1), 15-33.
Vilko, J. P., and Hallikas, J. M. (2012), “Risk assessment in multimodal supply chains”, International Journal of Production Economics, 140 (2), 586-595.
Voss, C. A., Tsikriktsis, N. and Frohlich, M. (2002), “Case Research in Operations Management”, International Journal of Operations & Production Management, 22 (2), 195-219.
Walker, H., Knight, L., Harland, C. (2005), “Outsourced services and imbalanced supply markets”, European Management Journal, 24 (1), 95-105.
Westphal, P. and Sohal, A. (2013), “Taxonomy of outsourcing decision models”, Production Planning & Control: The Management of Operations, 24 (4-5), 347-358.
Williamson, O. E. (1985), The Economic Institutions of Capitalism, Free Press, New York.
Yan, T. and Dooley, K. J. (2013), “Communication intensity, goal congruence, and uncertainty in buyer–supplier new product development”, Journal of Operations Management, 31 (7), 523-542.
Yin, R. (2008), Case Study Research: Designs and Methods, 3rd ed., Sage Publications, London.
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