IDEAS home Printed from https://ideas.repec.org/p/zbw/uasmdp/12015.html
   My bibliography  Save this paper

Evolving procurement organizations: A contingency model for structural alternatives

Author

Listed:
  • Bals, Lydia
  • Laine, Jari
  • Mugurusi, Godfrey

Abstract

Procurement has to find further levers and advance its contribution to corporate goals continuously. This places pressure on its organization in order to facilitate its performance. Therefore, procurement organizations constantly have to evolve in order to match these demands. A conceptual model putting the structural elements in focus is derived from the analysis of two case companies, which extends the existing literature and opens new avenues for future research. The findings highlight the importance of taking a contingency perspective on procurement organization, understanding the internal and external contingency factors and having a more detailed look at the structural dimensions chosen, beyond the well-known characteristics of centralization, formalization, participation, specialization, standardization and size. From a theoretical perspective, it opens up insights that can be leveraged in future studies in the fields of hybrid procurement organizations, global sourcing organizations as well as international procurement offices (IPOs). From a practical standpoint, an assessment of external and internal contingencies and their relation to specific structural dimensions that can be chosen provides the opportunity to consciously match an organization to its operating environment and internal demands.

Suggested Citation

  • Bals, Lydia & Laine, Jari & Mugurusi, Godfrey, 2015. "Evolving procurement organizations: A contingency model for structural alternatives," UASM Discussion Paper Series 1/2015, University of Applied Sciences Mainz.
    • Handle: RePEc:zbw:uasmdp:12015
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/181885/1/uasm-dp-001.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Janet Y Murray & Masaaki Kotabe & Albert R Wildt, 1995. "Strategic and Financial Performance Implications of Global Sourcing Strategy: A Contingency Analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(1), pages 181-202, March.
    2. Sriram, Ven & Stump, Rodney, 2004. "Information technology investments in purchasing: an empirical investigation of communications, relationship and performance outcomes," Omega, Elsevier, vol. 32(1), pages 41-55, February.
    3. van Echtelt, F.E.A. & Wynstra, J.Y.F. & van Weele, A.J., 2007. "Strategic and Operational Management of Supplier Involvement in New Product Development: a Contingency Perspective," ERIM Report Series Research in Management ERS-2007-040-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    4. Odd Jarl Borch & Michael B. Arthur, 1995. "Strategic Networks Among Small Firms: Implications For Strategy Research Methodology," Journal of Management Studies, Wiley Blackwell, vol. 32(4), pages 419-441, July.
    5. Seyed M. Iravani & Mark P. Van Oyen & Katharine T. Sims, 2005. "Structural Flexibility: A New Perspective on the Design of Manufacturing and Service Operations," Management Science, INFORMS, vol. 51(2), pages 151-166, February.
    6. Hales, Douglas N. & Chakravorty, Satya S., 2006. "Implementation of Deming's style of quality management: An action research study in a plastics company," International Journal of Production Economics, Elsevier, vol. 103(1), pages 131-148, September.
    7. Hameri, Ari-Pekka & Paatela, Antti, 2005. "Supply network dynamics as a source of new business," International Journal of Production Economics, Elsevier, vol. 98(1), pages 41-55, October.
    8. Virolainen, Veli-Matti, 1998. "A survey of procurement strategy development in industrial companies," International Journal of Production Economics, Elsevier, vol. 56(1), pages 677-688, September.
    9. David J. Teece & Richard Rumelt & Giovanni Dosi & Sidney Winter, 2000. "Understanding Corporate Coherence: Theory and Evidence," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 9, pages 264-293, Edward Elgar Publishing.
    10. Glock, C. H. & Hochrein, S., 2011. "Purchasing Organization and Design: A Literature Review," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 57809, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    11. Ganeshan, Ram & Ring, Lawrence J. & Strong, John S., 2007. "A mathematical approach to designing central vs. local ordering in retail," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 341-348, July.
    12. Lewin, Jeffrey E. & Donthu, Naveen, 2005. "The influence of purchase situation on buying center structure and involvement: a select meta-analysis of organizational buying behavior research," Journal of Business Research, Elsevier, vol. 58(10), pages 1381-1390, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Katia Picaud-Bello & Thomas Johnsen & Richard Calvi & Mihalis Giannakis, 2019. "Exploring early purchasing involvement in discontinuous innovation: A dynamic capability perspective," Post-Print hal-02380474, HAL.
    2. Schmidberger, Stephan & Bals, Lydia & Hartmann, Evi & Jahns, Christopher, 2009. "Ground handling services at European hub airports: Development of a performance measurement system for benchmarking," International Journal of Production Economics, Elsevier, vol. 117(1), pages 104-116, January.
    3. Loet Leydesdorff & Dieter Franz Kogler & Bowen Yan, 2017. "Mapping patent classifications: portfolio and statistical analysis, and the comparison of strengths and weaknesses," Scientometrics, Springer;Akadémiai Kiadó, vol. 112(3), pages 1573-1591, September.
    4. Colombo, Massimo G. & Garrone, Paola, 1998. "Common carriers' entry into multimedia services," Information Economics and Policy, Elsevier, vol. 10(1), pages 77-105, March.
    5. Gallear, David & Ghobadian, Abby & Chen, Weifeng, 2012. "Corporate responsibility, supply chain partnership and performance: An empirical examination," International Journal of Production Economics, Elsevier, vol. 140(1), pages 83-91.
    6. Orsatti, Gianluca & Pezzoni, Michele & Quatraro, Francesco, 2017. "Where Do Green Technologies Come From? Inventor Teams’ Recombinant Capabilities and the Creation of New Knowledge," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201711, University of Turin.
    7. Mutinelli, Marco & Piscitello, Lucia, 1998. "The entry mode choice of MNEs: an evolutionary approach," Research Policy, Elsevier, vol. 27(5), pages 491-506, September.
    8. Villalonga, Belen, 2004. "Intangible resources, Tobin's q, and sustainability of performance differences," Journal of Economic Behavior & Organization, Elsevier, vol. 54(2), pages 205-230, June.
    9. Sangcheol Song, 2014. "Subsidiary Divestment: The Role of Multinational Flexibility," Management International Review, Springer, vol. 54(1), pages 47-70, February.
    10. Muhammad Khalid Anser & Zahid Yousaf & Muhammad Usman & Seemab Yousaf, 2020. "Towards Strategic Business Performance of the Hospitality Sector: Nexus of ICT, E-Marketing and Organizational Readiness," Sustainability, MDPI, vol. 12(4), pages 1-17, February.
    11. Balland, Pierre-Alexandre & Broekel, Tom & Diodato, Dario & Giuliani, Elisa & Hausmann, Ricardo & O'Clery, Neave & Rigby, David, 2022. "Reprint of The new paradigm of economic complexity," Research Policy, Elsevier, vol. 51(8).
    12. Tom Broekel & Wladimir Mueller, 2018. "Critical links in knowledge networks – What about proximities and gatekeeper organisations?," Industry and Innovation, Taylor & Francis Journals, vol. 25(10), pages 919-939, November.
    13. Ilya R. P. Cuypers & Youtha Cuypers & Xavier Martin, 2017. "When the target may know better: Effects of experience and information asymmetries on value from mergers and acquisitions," Strategic Management Journal, Wiley Blackwell, vol. 38(3), pages 609-625, March.
    14. Enrico Vanino & Stephen Roper & Bettina Becker, 2020. "Knowledge to Money: Assessing the Business Performance Effects of Publicly Funded R&D Grants," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(04), pages 20-24, January.
    15. Nikulainen, Tuomo & Pajarinen, Mika, 2013. "Industry restructuring in the ICT sector – What does labor mobility tell us about skill relatedness and knowledge spillovers?," ETLA Working Papers 17, The Research Institute of the Finnish Economy.
    16. Laura Rondi & Davide Vannoni, 2002. "Firm Diversification in the European Union: New Insights on Return to Core Business and Relatedness," CERIS Working Paper 200208, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.
    17. repec:tkp:ijsrsy:v:2:y:2012:i:2:p:73-91 is not listed on IDEAS
    18. Steven Klepper & Sally Sleeper, 2005. "Entry by Spinoffs," Management Science, INFORMS, vol. 51(8), pages 1291-1306, August.
    19. Krafft Jackie & Quatraro Francesco & Colombelli Alessandra, 2011. "High Growth Firms and Technological Knowledge: Do gazelles follow exploration or exploitation strategies?," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201114, University of Turin.
    20. Jackie Krafft & Francesco Quatraro, 2011. "The Dynamics of Technological Knowledge: From Linearity to Recombination," Chapters, in: Cristiano Antonelli (ed.), Handbook on the Economic Complexity of Technological Change, chapter 7, Edward Elgar Publishing.
    21. David Rigby, 2012. "The Geography of Knowledge Relatedness and Technological Diversification in U.S. Cities," Papers in Evolutionary Economic Geography (PEEG) 1218, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2012.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:uasmdp:12015. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/fwfmade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.