Aligning Marketing and Purchasing for new value creation

The objective of this study is to explore how changes in organizing the alignment between Marketing and Purchasing (M&P) might be linked to new value creation. The issue of value creation and the specific role of inter-functional cooperation have been examined in depth in the marketing literature. However, the relationship between Marketing and Purchasing alignment and value creation has received only limited attention, even though the emerging role of purchasing is increasingly recognized. This work aims to address this gap using the analytical framework by Bocconcelli and Tunisini (2012) as a basis and adopting a process perspective. Specifically it intends to explore i) how companies over time manage the alignment of M&P and under which conditions/triggers; ii) whether different types of emerging organizational alignments between purchasing and marketing might result in different types of new value creation. To address these research objectives a qualitative methodology based on multiple-case study research is adopted. Four cases of mechanical firms – two large and two medium-sized – have been examined in depth. Results show that two trajectories – interactive alignment of M&P and structural alignment of M&P – have been implemented and that these paths are related respectively to value creation processes in terms of optimizing product delivery and managing product and solutions development. Market pressure and new competences are assessed as main relevant drivers, while organizational culture emerges as a meaningful barrier. Therefore this works provides a theoretical and empirical contribution further developing in a process perspective the analysis of M&P alignment and its effects on value creation. Results have also clear implications for practice: M&P alignment is necessary and beneficial for value creation. Changes, however, require time, organizational resources and a stronger awareness within the company.