Purchasing as market-shaping: The case of component-based software engineering |
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| Institution: | 1. Department of Marketing, Oulu Business School, University of Oulu, P.O. Box 4600, 90014 Oulu, Finland;2. Department of Marketing, Lancaster University Management School, Lancaster LA1 4YX, UK;3. Department of Marketing, Oulu Business School, University of Oulu, FIN-90014 Oulu, Finland;1. Department of Engineering Technology, Waterford Institute of Technology, Waterford, Ireland;2. UCD School of Business, University College Dublin, Dublin, Ireland;1. School of Management, University of Leicester, University Road, Leicester LE1 7RH, United Kingdom;2. University of Limerick, Kemmy Business School, Department of Management & Marketing, Ireland;1. Department of Marketing and Strategy, Stockholm School of Economics, PO Box 6501, S-11383 Stockholm, Sweden;2. The Market Shaping Institute. 110 Chemin Des Petites Bruyères, 01480 Frans, France;3. Department of Marketing, University of Strathclyde Business School, 173 Cathedral Street, Glasgow, UK;1. MINES ParisTech, PSL Research University, CSI–Centre for the Sociology of Innovation, CNRS UMR 7185, 60 Bd St Michel, Paris 75006, France;2. Department of Planning, Center for Design, Innovation and Sustainable Transition (DIST), Aalborg University, A.C. Meyers Vænge 15, Copenhagen SV 2450, Denmark;1. University of Auckland Business School, Graduate School of Management, Private Bag 92019, Auckland, New Zealand;2. Hanken School of Economics, Department of Marketing, P.O. Box 479, FIN-00101 Helsinki, Finland |
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| Abstract: | The efforts to address markets as socio-technical orders have hitherto focused on the role of marketing in shaping demand. However, in many markets the role of purchasing is just as important. This paper uses a case study to examine how a single buying company can attempt to shape an emerging market through its purchasing practices. As a result, the study identifies five types of market-shaping actions. Within each action type, the market-shaping behavior of a buyer in an emerging market can be very diverse and include internal actions as well as actions aimed at influencing other market actors. While agency on the purchasing side is often associated with large size organizations, namely government and public sector agencies, our case study shows that agencies on the purchasing sides can be deployed in a variety of ways rather than merely through raw bargaining power. The findings indicate that buying firms do not simply adjust their own purchasing processes according to existing offerings, but actively attempt to drive market evolution in particular directions. |
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