Determinants of purchasing team usage in the supply chain

P. Fraser Johnson · Robert David Klassen · Michiel R. Leenders · Harold E. Fearon

88 citations0/0 files storedJournal of Operations Management

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Quality and Supply Management Supply Chain and Inventory Management Outsourcing and Supply Chain Management

Abstract

Abstract Increased attention on supply chain management has highlighted the pivotal role that supply chain management and purchasing teams can play in the overall competitiveness of many firms. This paper presents findings from an exploratory study that analyzes the impact of purchasing’s strategic role, industry context and purchasing organizational structure, on the use of various forms of purchasing teams. Using survey data from a broad sample of industries, we found that team usage was a two‐dimensional construct: internal teams and councils, and customer teams. In addition, purchasing’s strategic role comprised two factors: product and technology planning, and external systems planning. After controlling for firm size, purchasing’s strategic role was positively related to the greater use of internal teams and councils, but not customer teams. Industry context also played a role in the usage of teams, with internal teams and councils more extensively used by the firms that manufactured discrete goods. Meanwhile, firms in the service sector favored the use of customer teams. Finally, both industry context and purchasing’s organizational structure were related to the strategic role assumed by purchasing, with a decentralized structure tending to reduce that strategic role.

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References

1991Firm Resources and Sustained Competitive Advantage 2004Firm resources and sustained competitive advantage 1989Asset Stock Accumulation and Sustainability of Competitive Advantage 1967Differentiation and Integration in Complex Organizations 1971A Strategic Contingencies' Theory of Intraorganizational Power 1993Characteristics of Supply Chain Management and the Implications for Purchasing and Logistics Strategy 1999Strategically managed buyer–supplier relationships and performance outcomes 2020Effective supply chain management

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