How to achieve cost savings and strategic performance in purchasing simultaneously: a knowledge-based view

TLDR: In this article, the authors derive a theoretical framework grounded in the knowledge-based view in order to examine how purchasing knowledge and purchasing integration impact cost and strategic performance, and conclude that purchasing knowledge becomes particularly valuable when combined with other functions' processes through purchasing integration.

About: This article is published in Journal of Purchasing and Supply Management.The article was published on 2020-03-01 and is currently open access. It has received 36 citations till now. The article focuses on the topics: Purchasing.

Figures

Fig. 2. Interaction charts

Table 6: Results of hypotheses testing

Table 1: Construct development and confirmatory factor analysis results

Table 2: Construct Correlations

Table 3: Chi-square difference tests

Table 5: Conditional direct and indirect effect of purchasing knowledge on savings performance via strategic purchasing performance

Frequently asked questions

Q1. What are the future works in this paper?

Naturally, in addition to the strength and unique feature of deriving insight from analysis of extensive secondary data with real financial performance metrics, this study has certain limitations that offer options for further research. Therefore, the authors suggest the analysis of longitudinal data in future research to understand whether the effects they found can also be sustained over time. Also, certain dimensions were discarded in this study and could be explored further in future research. Finally, their findings could be strengthened further by extending research to realized savings as suppliers usually try to generate additional margins during contract execution, for example, via claims management. 

Q2. What are the contributions in this paper?

The competitive advantage purchasing provides has been debated for decades. For a novel perspective the authors derive a theoretical framework grounded in the knowledge-based view in order to examine how purchasing knowledge and purchasing integration impact cost and strategic performance. The 179 studied ‘ purchasing-internal client relationships ’ contain real contracted savings data and internal client ratings of purchasing knowledge, purchasing integration and strategic purchasing performance. The authors show that purchasing knowledge is a major antecedent for both savings and strategic purchasing performance. With this study, the authors extend the understanding of the purchasing knowledge–performance link. Moreover, the authors provide numerical evidence of the value of knowledge creation and integration processes to purchasing professionals in their managerial implications based on results obtained from actual purchasing savings data. This effect is further amplified by purchasing integration.