Go Configure: The Mix of Purchasing Practices to Choose for Your Supply Base

Purchasing and supply management professionals recognize the value of aggressive transactional sourcing, as well as of having cooperative relationships with suppliers. But what mix of transactional and relational purchasing are organizations using, and which should they use? A novel instrument is de...

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Bibliographic Details
Published in:California management review 2013-01, Vol.55 (2), p.72-96
Main Authors: Lindgreen, Adam, Vanhamme, Joëlle, van Raaij, Erik M., Johnston, Wesley J.
Format: Article
Language:English
Subjects:
Corporate strategies
Information technology
Interpersonal interaction
Inventory management
Investment strategies
Management
Management theory
Marketing
Organization
Organizational communication
Planning methods
Purchasing
Purchasing department
Purchasing power
Social interaction
Sourcing
Strategic management
Studies
Suppliers
Supply
Supply chain management
Supply management
Transaction costs
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Summary:Purchasing and supply management professionals recognize the value of aggressive transactional sourcing, as well as of having cooperative relationships with suppliers. But what mix of transactional and relational purchasing are organizations using, and which should they use? A novel instrument is developed to measure organizations’ use of transaction purchasing, electronic purchasing, interactive purchasing, and network purchasing. Four mixes of practices are identified and labeled “transactional,” “interpersonal dyadic,” “interpersonal network,” and “integrative relational” configurations. Organizations using an integrative relational configuration generally outperform others. Irrespective of configuration, organizations use more interactive and network purchasing with suppliers of direct inputs but more transaction purchasing with suppliers of indirect inputs.
ISSN:0008-1256
2162-8564
DOI:10.1525/cmr.2013.55.2.72