Evaluating the bases of supplier segmentation: A review and taxonomy |
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Authors: | Marc Day [Author Vitae] Gregory M Magnan [Author Vitae] Morten Munkgaard Moeller [Author Vitae] |
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Institution: | a Henley Business School, University of Reading, Greenlands, Henley-on-Thames RG9 3AU, UK b Seattle University, Albers School of Business and Economics, 901 12th Avenue, Seattle, WA 98122, USA c Dansk Indkøbs- og Logistik Forum (DILF) Vesterbrogade 112 b, 1620 København V, Denmark |
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Abstract: | A taxonomy of segmentation bases is presented which builds a multi-disciplinary approach to the categorization of suppliers. Supplier segmentation, from a purchasing perspective, still appears to be in the early stages of providing a coherent strategic intent behind supplier assessment. Whilst fragmentary in nature, current portfolio models are grouped into two principal taxonomic constructs of power and dependence and relational factors. In particular, the prevalent use of transaction cost economics (TCE) in portfolio modelling provides a foundation for purchasers to appraise risks from supplier opportunism. We augment existing approaches with reference to inter-organisational theory and the resource-based view to show different modes of inter-firm value creation that act as constituents of a strategic intent for segmentation. Our resulting taxonomy draws together a holistic view of supplier segmentation covering supply market conditions, product/service characteristics, supplier characteristics, buyer characteristics, and buyer-supplier relational factors. |
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Keywords: | Supplier segmentation Segmentation bases Portfolio models Relationship value |
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