Co-management of purchasing and marketing: Why,when and how? |
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| Institution: | 1. Chair of Logistics Management, Department of Management, Technology, and Economics, Swiss Federal Institute of Technology Zurich, Weinbergstrasse 56/58, 8092 Zurich, Switzerland;2. Marketing Department, University of Paderborn, Warburger Strasse 100, 33098 Paderborn, Germany;1. School of Commerce, Meiji University, 1-1 Kanda-Surugadai, Chiyoda-ku, Tokyo 101-8301, Japan;2. Research Institute for Economics and Business Administration, Kobe University, 2-1 Rokkodai, Nada-ku, Kobe 657-8501, Japan;1. University of Missouri – Kansas City, Henry W. Bloch School of Management, 5100 Rockhill Road, Kansas City, MO 64110–2499, USA;2. City University of Hong Kong, College of Business, 83 Tat Chee Avenue, Kowloon, Hong Kong, China;1. Edwards School of Business, University of Saskatchewan, 25 Campus Drive, Saskatoon, SK S7N 5A7, Canada;2. Carey Business School, Johns Hopkins University, 100 International Drive, Baltimore, MD 21202, United States |
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| Abstract: | This article discusses the theoretical and conceptual foundations for the co-management of purchasing and marketing and thereby provides some answers to the questions, why, when and how purchasing and marketing should be co-managed. It develops a conceptual framework distinguishing between internal and external co-management of purchasing and marketing. Improving value creation and value capture is identified as a necessary “pull factor” driving the co-management of purchasing and marketing. Based on resource dependence theory (RDT), we argue that dependence on critical resources is another important “push factor” for the emergence of external co-management. We present a RDT-based typology of co-management constellations showing that co-management is not a one-size-fits-all approach and summarize our findings in five propositions on the co-management of purchasing and marketing. In sum, we conceptualize co-management of marketing and purchasing as a bridging strategy that allows a focal firm to accommodate dependence on critical upstream and/or downstream resources and improves value creation within the supply chain. |
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