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 - Purchasing as market-shaping
T2 - the case of component-based software engineering
AU - Ulkuniemi, Pauliina
AU - Araujo, Luis
AU - Tähtinen, Jaana
PY - 2015
Y1 - 2015
N2 - The efforts to address markets as socio-technical orders have hitherto focused on the role of marketing in shaping demand. However, in many markets the role of purchasing is just as important. This paper uses a case study to examine how a single buying company can attempt to shape an emerging market through its purchasing practices. As a result, the study identifies five types of market-shaping actions. Within each action type, the market-shaping behavior of a buyer in an emerging market can be very diverse and include internal actions as well as actions aimed at influencing other market actors. While agency on the purchasing side is often associated with large size organizations, namely government and public sector agencies, our case study shows that agencies on the purchasing sides can be deployed in a variety of ways rather than merely through raw bargaining power. The findings indicate that buying firms do not simply adjust their own purchasing processes according to existing offerings, but actively attempt to drive market evolution in particular directions.
AB - The efforts to address markets as socio-technical orders have hitherto focused on the role of marketing in shaping demand. However, in many markets the role of purchasing is just as important. This paper uses a case study to examine how a single buying company can attempt to shape an emerging market through its purchasing practices. As a result, the study identifies five types of market-shaping actions. Within each action type, the market-shaping behavior of a buyer in an emerging market can be very diverse and include internal actions as well as actions aimed at influencing other market actors. While agency on the purchasing side is often associated with large size organizations, namely government and public sector agencies, our case study shows that agencies on the purchasing sides can be deployed in a variety of ways rather than merely through raw bargaining power. The findings indicate that buying firms do not simply adjust their own purchasing processes according to existing offerings, but actively attempt to drive market evolution in particular directions.
KW - Market studies
KW - Purchasing and supply management
KW - Market structures
KW - Supply markets
U2 - 10.1016/j.indmarman.2014.10.007
DO - 10.1016/j.indmarman.2014.10.007
M3 - Journal article
VL - 44
SP - 54
EP - 62
JO - Industrial Marketing Management
JF - Industrial Marketing Management
SN - 0019-8501
ER -