Achieving purchasing competence through purchasing performance measurement system design—A multiple-case study analysis

Purchasing competence, the level of strategic integration and alignment, is a key determinant of the purchasing function's impact on overall corporate success. Previous research has revealed that the implementation of a mature purchasing performance measurement system (PPMS) can be a means to attain a high level of functional strategic integration. In this research, we develop five propositions on how PPMS should be designed to facilitate strategic integration. We challenge these propositions using data gathered from four case studies with German companies from different industrial sectors. While each of these companies pursues multiple strategic objectives within Purchasing, the PPMSs designs focus heavily on cost-related strategy and performance dimensions. Thus, our findings indicate the need to develop PPMS schemes allowing a direct linkage between financial performance and non-financial performance measures in order to incentivize the desired multiple strategic goals beyond periodical cost reduction. Moreover, such measurement systems need to be adapted at the category level of purchasing practices to obtain the desired level of pre-defined strategic performance dimensions. Hence, the level of purchasing competence is determined at category level and a PPMS must transform strategy into measurable goals at this level.     

Public sector purchasing of health services: A comparison with private sector purchasing

Recent research has highlighted the existence of important differences between public and private sector procurement practices. Drawing on established transactional and relational conceptual frameworks, this paper examines whether the differing environments confronting public and private sector organisations affects procurement practices. By focusing solely on occupational health services as an example of a complex business service, the research allows the influence of environmental factors, notably policy drivers, to be considered across both public and private sector settings while service specific factors remain largely constant. Utilising a combination of questionnaires and in-depth interviews the research suggests that policy drivers had a major bearing on procurement practices adopted in the public sector, resulting in a very different pattern of engagement with service providers from that prevailing in the private sector. Specifically whereas private sector organisations utilised a range of approaches, which can broadly be classified as relational in nature, public sector organisations almost exclusively relied on transactional-based approaches. The nature of these services suggests that relational based procurement constitutes the optimal approach to the acquisition of such services. However, for public sector organisations the perceived restrictions imposed by public policy on procurement practices resulted in the adoption of an approach which can be viewed as resulting in sub-optimal outcomes.     

International purchasing offices: Literature review and research directions

International Purchasing Offices (IPOs) now play an increasingly important role in the management of international sourcing activities, both in developed and emerging economies. The relevance of this organisational solution and the relatively limited research that has been published so far in the P&SCM literature make the “IPO” topic particularly promising for future research. This paper – based on an analysis of 59 works published between 1991 and 2011 – provides the first comprehensive literature review and research agenda on this topic. The primary issues (i.e., IPO definition, activities, location choices, strengths, weaknesses, and human resources management) are identified, and a conceptual framework is proposed. Building on this analysis, some theoretical and methodological weaknesses of the existing works and some gaps in the literature are discussed. This work concludes by suggesting several future research directions.     

The purchasing market entry process—A study of 10 Swedish industrial small and medium-sized enterprises

While an area of importance and concern to managers, international purchasing remains an under researched phenomenon, especially in the context of small and medium-sized firms. Therefore, this article presents a study of the international purchasing market entry processes of 10 industrial SMEs. The findings indicate that managers of SMEs are often reluctant to source abroad. Purchasing markets entries are generally more reactive than proactive, occurring as a consequence of needs for certain products that cannot be found domestically, high domestic costs, unsolicited opportunities and pressures from owners and customers. Nearby purchasing markets typically dominate throughout the process unless cost savings motivate firms to explore more remote markets.     

Managing the global supply base through purchasing portfolio management

‘How to source globally’ has become a critical strategic decision for companies competing on a global basis. Despite an increased focus on global sourcing and supply chain management, little is known about the challenges and solutions surrounding such sourcing practices. Extant literature points at the critical importance of developing and sharing knowledge in multinational companies (MNCs). However, little work has been undertaken to examine the organizational mechanisms used by MNC headquarters for knowledge leveraging across subsidiaries, especially in the area of purchasing and supply management. Based on an in-depth case study, focusing on a chemical company, the actual buying systems for managing the global supply base are explored. Kraljic's purchasing portfolio approach appears useful, both for developing effective purchasing strategies as well as for managing a global supply base.     

Boards of directors in SMEs: a review and research agenda

This paper aims at reviewing research and presenting a research agenda on boards of directors in SMEs. While most publications about boards in SMEs focus on the lack of research in the area, this paper presents some of the work that has been conducted. Publications on boards of directors during the 1990s in outlets for SME research are reviewed. Boards of directors in small and medium-sized companies are getting increased attention, but the knowledge about boards in such companies is still fragmented. This paper presents research challenges based on a holistic model of directorates in SMEs that is elaborated from previous research about directorates. The papers selected for this special issue on boards of directors in SMEs are presented in this framework.     

The purchasing department's leadership role in developing and maintaining a preferred customer status

Developing and maintaining a preferred customer status is one of the main objectives of organizations that want to obtain a better access to supplier's information, resources, and innovation. This paper addresses the extent and the nature of the purchasing department's leadership role in the process of developing and maintaining a preferred customer status. A qualitative exploratory approach based on eleven cases has been used in order to take into consideration the context specific to the buyer-supplier relationship in a preferred customer scenario.Our study shows that the purchasing department performs four main categories of roles: (1) identifies and selects the best supplier, (2) structures and segments the supply base, (3) builds close relationships with selected suppliers and (4) develops working relationships, using an effective communication. Each of these roles is related to three key components of the purchasing department's capabilities: boundary, relational, and coordination. These four categories of roles illustrate supply's ability to recognize and understand the specifics of the preferred customer situation. Based on our analysis, the purchasing department should be viewed as extending an organization's resource base, making the organization more competitive.Our analysis also shows that the purchasing managers' leadership is critical for the development and the coordination of activities with selected suppliers, as well as proper communication with them. Specifically, the purchasing manager's transformational leadership generates more internal user and supplier involvement through the creation and articulation of a common vision, by establishing shared goals with other organizational units, and by focusing on activities that benefit the organization; this allows to move from initiative-driven efforts to an “institutionalized preferred customer status management” in the organization.     

上市公司资产运营效率实证研究

本文通过实证研究,分析了影响中国上市公司资产运营效率的四个重要因素：企业规模、主营业务利润率、负债比率和非流通股比例。本文研究表明：在上市公司业绩尚佳的时候,资产运营效率与企业规模、企业非流通股比例之间呈正相关,与主营业务利润之间负相关,与负债比例无关。随着上市公司经营业绩的下降,资产运营效率逐渐脱离上述因素影响,原因为政府支持力度的下降和经营者内部人控制。因此,要提高中国上市公司资产运营效率,需改进内外部治理结构和政府公务员管理体制。     

Intra-organizational legitimization strategies used by purchasing managers

This paper addresses the issue of how purchasing managers can develop the purchasing department's legitimacy within an organization. A qualitative exploratory approach based on six cases has been used since: (1) there has not yet been a research performed on this topic; and (2) an analysis of internal legitimization strategies must take into consideration the context and the nature of the relationships among departments. Our analysis shows that in order to create, maintain or increase the purchasing department's internal legitimacy, purchasing managers have to do very well about two complementary strategic orientations: (1) identify and attract the best suppliers; (2) identify and implement collaborative processes and coordination mechanisms that cannot be duplicated by competitors. In fact, supply managers actually develop legitimization strategies based internally and externally, since a higher level of internal legitimacy can also be supported partially by external stakeholders, who then influence the other departments' and top management's perceptions.Our study also shows that the strategies used by purchasing managers take different forms depending which legitimacy dimension (cognitive, pragmatic, or moral legitimacy) they are trying to influence. Moreover, a purchasing department's legitimacy strategy is developed based on a few important factors: (1) where the purchasing department stands at a given time in terms of the contribution perceived, similar to a "balance sheet" evaluation; (2) the purchasing personnel's technical and relational competencies; and (3) the extent of their implication in the strategic choices leading to the development of a competitive advantage for the organization they work for. It seems that any effort to take steps based on coherent legitimization strategies could help improve both a purchasing department's legitimacy level and its development level. From this standpoint, this study also shows that the purchasing department's internal legitimacy is a crucial driver of purchasing practices.     

Handling measurement issues and strategic directions in Kraljic''s purchasing portfolio model

Kraljic's purchasing portfolio model, which was introduced in 1983, still is the dominant approach in the profession. Contrary to the growing use of the Kraljic matrix, there are problems and unanswered questions with respect to measurement and strategic issues. Based on explorative case studies, the critique of Kraljic's model has been disputed and refuted to a large extent. This study describes the solutions of experienced practitioners to the problems which have been put forward in literature. The case studies point out which measurement methods are possible and which supplier strategies are feasible, including additional strategic movements of commodities within the matrix. The research findings indicate that there is no simple, standardized blue print for the application of the portfolio analysis. It requires reflecting on results, critical thinking and sophistication of purchasing management.     

猎头公司候选人能力综合评估的研究

国内的猎头公司在外资猎头公司进入中国的情况下面临强大的竞争,如何能够给客户提供更好的服务,如何能为客户提供更好的候选人便成为竞争的焦点。文章提出了用数学模型层次分析法来对候选人进行全方位的评估,从而不仅可以提高猎头公司的业务能力,也可以提高推荐候选人的质量。     

The impact of performance measurement on purchasing group dynamics: The Canadian experience

Purchasing groups were first created in the healthcare sector, which has faced unprecedented challenges in terms of cost control for over two decades. Purchasing groups are indeed supposed to generate additional savings and more efficient purchasing processes. However, although various aspects of purchasing groups have been studied since the early 2000s, both their performance measurement and the influence that this measurement has on inter-organizational dynamics have been neglected. In purchasing groups, the dynamics between the group itself and its members often results in tensions between both parties. Performance measurement within purchasing groups could alleviate those tensions, since “objective” data could then be used to improve communication.Based on a case study, this research sheds light on performance measurement in a purchasing group, on the dynamics between the group and its members, and on the interaction between performance measurement and inter-organizational dynamics. Results indicate that measuring performance impacts the dynamics between both parties, but that the relationship is also the other way around, and that the inter-organizational dynamics is quite complex. In addition, this paper proposes a framework summarizing the research findings.     

Strategic talent management: A review and research agenda

Despite a significant degree of academic and practitioner interest the topic of talent management remains underdeveloped. A key limitation is the fact that talent management lacks a consistent definition and clear conceptual boundaries. The specific contribution of the current paper is in developing a clear and concise definition of strategic talent management. We also develop a theoretical model of strategic talent management. In so doing we draw insights from a number of discreet literature bases. Thus, the paper should aid future research in the area of talent management through (1) helping researchers to clarify the conceptual boundaries of talent management and (2) providing a theoretical framework that could help researchers in framing their research efforts in the area. Additionally, it aids managers in engaging with some of the issues they face with regard to talent management.     

The psychology of talent management: A review and research agenda

Across six different streams of the literature (i.e., HRM; I/O psychology; educational psychology; vocational psychology; positive psychology; social psychology) we identify a number of discrepancies (i.e., between practitioner and academic interest; between talent management discourse and practice), theoretical perspectives (i.e., talent as capital; talent as individual difference; talent as giftedness; talent as identity; talent as strength; and talent as the perception of talent), tensions (i.e., object–subject; inclusive–exclusive; innate–acquired; input–output; transferable–context-dependent), and assumptions (i.e., about intuition versus data; about the effects of being labeled ‘talented’; about the effects of differential treatment) which we argue can serve as a basis for theory building, methodological advances, and new empirical work. With this review, we hope to join a growing group of talent management scholars pushing to make the transition from a growing into a mature field of study, characterized by widely accepted theoretical frameworks and research designs, and supported by the scholarly community.     

中国上市公司的股权结构：成因与影响

股权结构对公司绩效、治理模式具有重要的影响。影响一国公司股权结构的因素是多方面的,但证券市场监管水平的差异和对中小投资者的法律保护程度差异是主要的因素。当前中国上市公司股权结构、证券监管及法律环境造成了公司治理及绩效中的诸多问题,特别是控股股东对外部投资者利益的侵害。本文对这些问题进行了研究和探讨,并提出了相应的改善措施。     

Moving purchasing & supply management beyond a cost-focused identity

Practitioners and researchers recognize that purchasing and supply management (PSM) contributes value to business performance beyond reported cost reductions, though capturing and evaluating such contributions is often challenging. The goal of this research is to understand roadblocks impeding the recognition of PSM's contributions beyond cost reduction, and suggest potential solutions to these challenges. Social identity theory offers a conceptual framework to study PSM's self-identity and how it is perceived by others in the organization. Gaining acceptance for value-added metrics is critical to move perceptions of PSM's contribution beyond cost reduction and achieve its full potential. Social identity theory is used as a lens to assess the data and develop propositions. Using a qualitative interview method, the researchers identified important roadblocks hindering PSM's attainment of a broader value-based perception. PSM's identity is closely linked to cost-savings by itself, other functions and upper management. These perceptions are further reinforced by PSM through excessive cost reporting metrics. We provide two suggested solutions for PSM to expand its recognition beyond cost savings: 1) PSM must change its narrative and associated self-identity; and 2) PSM needs to develop metrics that are meaningful across multiple areas of the business.     

从SBA看美国政府的小企业服务体系

美国小企业署的发展历程就是帮助小企业署的历史。对小企业在立法方面的支持固然重要，但具体的支持需要一个服务体系来完成。通过对SBA的特征进行分析，我们发现建立并完善小企业的服务体系更加重要。结合美国小企业署的特征，政府特设一个机构作为小企业利益的维护者，这种作法非常值得借鉴。     

国内水电施工企业国际化经营策略探讨

文章认为随着我国经济体制从计划经济转向市场经济,以及中国加入WTO等原因,水电施工企业竞争更加激烈,在国内水电可开发资源逐步减少的情况下,迈向国际化经营便成为众多大型水电施工企业迎接挑战、抓住机遇、寻求发展的必由之路和最佳选择。     

Assessment and selection of management consultants: A comparative cognitive study between small- and large-scale companies

This paper explores alternative ways of evaluating and ultimately hiring a generalist consultancy for short- and medium-term projects, and how this is shaped by the size of the clients’ company. What buying factors do managers of small and large firms have in mind when hiring consultants for their projects?Instead of employing surveys incorporating predefined buying factors based on what the researchers think would be important, a cognitive mapping methodology - the repertory grid technique - is applied to investigate the underlying phenomena. Using the repertory grid technique to draw mental models is a novel research technique within the supply management field. Recent behavioral supply chain management research found the behavior of managers to be critically influenced by mental models: the lenses through which managers perceive, simplify and interpret the world.Results show differences between the buying factors used in small- and large-scale companies: managers of large companies are more ‘reputation and outcome-oriented’ and managers of small businesses are more concerned with ‘how the services are rendered’. However, both constituents stressed the importance of expertise, quality and the relationship between the client and the management consultancy, although the character of such a relationship differed between small- and large-scale firms. Results also point out criteria that managers of small and large companies employ to discriminate between good and poor performing consultancies and to judge service delivery. The practical implications for both companies hiring consultancies and the consultancy companies are discussed. For consultancies, our findings can help tailoring their efforts to a differing clientele when marketing and selling their services. For companies hiring consultancies, fixating too much on particular buying factors may lead to biased decisions.     

Offshoring knowledge and service work: A conceptual model and research agenda

This paper presents two complementary conceptual models that help shed light on the complexities of offshoring service and knowledge work. In developing the model, we draw upon existing literature in the realm of service operations and delivery and build on insights from allied areas such as management and practice. The models offer a simple yet powerful way to conceptualize offshoring of knowledge and service work and to identify the inherent challenges that such strategies entail. The evolutionary model of offshoring parallels well-established work in the manufacturing literature to present a sequential view of building organizational competence in offshoring. The implications of the conceptual models have been discussed in a range of propositions that can be viewed as foundations for new inquiry in this research stream.