The role of strategic purchasing in dynamic capability development and deployment: A contingency perspective

Alistair Brandon-Jones, Desiree Knoppern

Research output: Contribution to journalArticle

  • 1 Citations

Abstract

Purpose: This paper reports on research into the impact of two sequential dimensions of strategic purchasing – purchasing recognition and purchasing involvement – on the development and deployment of dynamic capabilities. We also examine how such dynamic capabilities impact on both cost and innovation performance, and how their effects differ for service as opposed to manufacturing firms.

Design /methodology/approach: We test hypotheses using structural equation modelling of survey data from 309 manufacturing and service firms.

Findings: From a dynamic capability perspective, our analysis supports the positive relationships between purchasing recognition, purchasing involvement, and dynamic capability in the form of knowledge scanning. We also find support for the positive impact of knowledge scanning on both cost and innovation performance. From a contingency perspective, data supports hypothesized differences caused by industry, whereby service-based firms experience stronger positive linkages in our model than manufacturing-based firms. Finally, emerging from our data, we explore a re-enforcing effect from cost performance to purchasing involvement, something that is in line with the dynamic capabilities perspective but not typically addressed in Operations Management (OM) research.

Originality/value: Our research offers a number of theoretical and managerial contributions, including (1) being one of a relative few examples of empirical assessment of dynamic capability development and deployment; (2) examining the enablers of dynamic capability in addition to the more commonly addressed performance effect; (3) assessing the contingency effect of firm type for dynamic capabilities; and (4) uncovering a return (re-enforcing) effect between performance and enablers of dynamic capabilities.

Keywords:
Dynamic capabilities; strategic purchasing; knowledge scanning; contingency perspective; survey
LanguageEnglish
Pages446-473
JournalInternational Journal of Operations & Production Management
Volume38
Issue number2
DOIs
StatusPublished - 5 Feb 2018

Fingerprint

Purchasing
Scanning
Innovation
Dynamic capabilities
Strategic purchasing
Contingency perspective
Costs

Cite this

@article{f76d9d6a534741d6a785bc531f118678,
title = "The role of strategic purchasing in dynamic capability development and deployment: A contingency perspective",
abstract = "Purpose: This paper reports on research into the impact of two sequential dimensions of strategic purchasing – purchasing recognition and purchasing involvement – on the development and deployment of dynamic capabilities. We also examine how such dynamic capabilities impact on both cost and innovation performance, and how their effects differ for service as opposed to manufacturing firms. Design /methodology/approach: We test hypotheses using structural equation modelling of survey data from 309 manufacturing and service firms. Findings: From a dynamic capability perspective, our analysis supports the positive relationships between purchasing recognition, purchasing involvement, and dynamic capability in the form of knowledge scanning. We also find support for the positive impact of knowledge scanning on both cost and innovation performance. From a contingency perspective, data supports hypothesized differences caused by industry, whereby service-based firms experience stronger positive linkages in our model than manufacturing-based firms. Finally, emerging from our data, we explore a re-enforcing effect from cost performance to purchasing involvement, something that is in line with the dynamic capabilities perspective but not typically addressed in Operations Management (OM) research. Originality/value: Our research offers a number of theoretical and managerial contributions, including (1) being one of a relative few examples of empirical assessment of dynamic capability development and deployment; (2) examining the enablers of dynamic capability in addition to the more commonly addressed performance effect; (3) assessing the contingency effect of firm type for dynamic capabilities; and (4) uncovering a return (re-enforcing) effect between performance and enablers of dynamic capabilities.Keywords: Dynamic capabilities; strategic purchasing; knowledge scanning; contingency perspective; survey",
author = "Alistair Brandon-Jones and Desiree Knoppern",
year = "2018",
month = "2",
day = "5",
doi = "10.1108/IJOPM-10-2015-0656",
language = "English",
volume = "38",
pages = "446--473",
journal = "International Journal of Operations & Production Management",
issn = "0144-3577",
publisher = "Emerald Group Publishing Ltd.",
number = "2",

}

TY - JOUR

T1 - The role of strategic purchasing in dynamic capability development and deployment: A contingency perspective

AU - Brandon-Jones, Alistair

AU - Knoppern, Desiree

PY - 2018/2/5

Y1 - 2018/2/5

N2 - Purpose: This paper reports on research into the impact of two sequential dimensions of strategic purchasing – purchasing recognition and purchasing involvement – on the development and deployment of dynamic capabilities. We also examine how such dynamic capabilities impact on both cost and innovation performance, and how their effects differ for service as opposed to manufacturing firms. Design /methodology/approach: We test hypotheses using structural equation modelling of survey data from 309 manufacturing and service firms. Findings: From a dynamic capability perspective, our analysis supports the positive relationships between purchasing recognition, purchasing involvement, and dynamic capability in the form of knowledge scanning. We also find support for the positive impact of knowledge scanning on both cost and innovation performance. From a contingency perspective, data supports hypothesized differences caused by industry, whereby service-based firms experience stronger positive linkages in our model than manufacturing-based firms. Finally, emerging from our data, we explore a re-enforcing effect from cost performance to purchasing involvement, something that is in line with the dynamic capabilities perspective but not typically addressed in Operations Management (OM) research. Originality/value: Our research offers a number of theoretical and managerial contributions, including (1) being one of a relative few examples of empirical assessment of dynamic capability development and deployment; (2) examining the enablers of dynamic capability in addition to the more commonly addressed performance effect; (3) assessing the contingency effect of firm type for dynamic capabilities; and (4) uncovering a return (re-enforcing) effect between performance and enablers of dynamic capabilities.Keywords: Dynamic capabilities; strategic purchasing; knowledge scanning; contingency perspective; survey

AB - Purpose: This paper reports on research into the impact of two sequential dimensions of strategic purchasing – purchasing recognition and purchasing involvement – on the development and deployment of dynamic capabilities. We also examine how such dynamic capabilities impact on both cost and innovation performance, and how their effects differ for service as opposed to manufacturing firms. Design /methodology/approach: We test hypotheses using structural equation modelling of survey data from 309 manufacturing and service firms. Findings: From a dynamic capability perspective, our analysis supports the positive relationships between purchasing recognition, purchasing involvement, and dynamic capability in the form of knowledge scanning. We also find support for the positive impact of knowledge scanning on both cost and innovation performance. From a contingency perspective, data supports hypothesized differences caused by industry, whereby service-based firms experience stronger positive linkages in our model than manufacturing-based firms. Finally, emerging from our data, we explore a re-enforcing effect from cost performance to purchasing involvement, something that is in line with the dynamic capabilities perspective but not typically addressed in Operations Management (OM) research. Originality/value: Our research offers a number of theoretical and managerial contributions, including (1) being one of a relative few examples of empirical assessment of dynamic capability development and deployment; (2) examining the enablers of dynamic capability in addition to the more commonly addressed performance effect; (3) assessing the contingency effect of firm type for dynamic capabilities; and (4) uncovering a return (re-enforcing) effect between performance and enablers of dynamic capabilities.Keywords: Dynamic capabilities; strategic purchasing; knowledge scanning; contingency perspective; survey

U2 - 10.1108/IJOPM-10-2015-0656

DO - 10.1108/IJOPM-10-2015-0656

M3 - Article

VL - 38

SP - 446

EP - 473

JO - International Journal of Operations & Production Management

T2 - International Journal of Operations & Production Management

JF - International Journal of Operations & Production Management

SN - 0144-3577

IS - 2

ER -