Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - How to achieve cost savings and strategic performance in purchasing simultaneously
T2 - A knowledge-based view
AU - Schütz, Kai
AU - Kässer, Matthias
AU - Blome, Constantin
AU - Foerstl, Kai
N1 - Publisher Copyright: © 2019 Elsevier Ltd
PY - 2020/3/31
Y1 - 2020/3/31
N2 - The competitive advantage purchasing provides has been debated for decades. For a novel perspective we derive a theoretical framework grounded in the knowledge-based view in order to examine how purchasing knowledge and purchasing integration impact cost and strategic performance. The derived hypotheses are tested based on extensive secondary data from a large European multinational utility company. The 179 studied ‘purchasing-internal client relationships’ contain real contracted savings data and internal client ratings of purchasing knowledge, purchasing integration and strategic purchasing performance. We show that purchasing knowledge is a major antecedent for both savings and strategic purchasing performance. This effect is further amplified by purchasing integration. With this study, we extend the understanding of the purchasing knowledge–performance link. We conclude that purchasing knowledge becomes particularly valuable when combined with other functions' processes through purchasing integration. This causal chain is also supported through general knowledge-based view theory. Moreover, we provide numerical evidence of the value of knowledge creation and integration processes to purchasing professionals in our managerial implications based on results obtained from actual purchasing savings data.
AB - The competitive advantage purchasing provides has been debated for decades. For a novel perspective we derive a theoretical framework grounded in the knowledge-based view in order to examine how purchasing knowledge and purchasing integration impact cost and strategic performance. The derived hypotheses are tested based on extensive secondary data from a large European multinational utility company. The 179 studied ‘purchasing-internal client relationships’ contain real contracted savings data and internal client ratings of purchasing knowledge, purchasing integration and strategic purchasing performance. We show that purchasing knowledge is a major antecedent for both savings and strategic purchasing performance. This effect is further amplified by purchasing integration. With this study, we extend the understanding of the purchasing knowledge–performance link. We conclude that purchasing knowledge becomes particularly valuable when combined with other functions' processes through purchasing integration. This causal chain is also supported through general knowledge-based view theory. Moreover, we provide numerical evidence of the value of knowledge creation and integration processes to purchasing professionals in our managerial implications based on results obtained from actual purchasing savings data.
KW - Knowledge-based view
KW - Purchasing integration
KW - Purchasing knowledge
KW - Purchasing performance
KW - Savings
KW - Strategic purchasing
U2 - 10.1016/j.pursup.2019.04.002
DO - 10.1016/j.pursup.2019.04.002
M3 - Journal article
AN - SCOPUS:85081535006
VL - 26
JO - Journal of Purchasing and Supply Management
JF - Journal of Purchasing and Supply Management
SN - 1478-4092
IS - 2
M1 - 100534
ER -