An exploratory analysis of the relationship between purchase category strategies and supply base structure

Melek Akin Ates, Finn Wynstra, Erik van Raaij

Research output: Contribution to journalArticleAcademicpeer-review

20 Citations (Scopus)

Abstract

This article explores how purchasing strategy at the purchase category level is related to the structure of the supply base for that purchase category. We contrast cost strategies with innovation strategies, and define supply base structure as being comprised of size (number of suppliers), heterogeneity (differentiation of suppliers), interaction (competition/collaboration), time/stability (contract duration) and transparency (supplier information sharing). Examining 13 purchase categories by means of the multiple case study method, we find that supply base structures that are associated with higher purchasing performance are not only explained by differences in purchase category strategy, but also by the purchase category's impact and supply risk. We develop seven detailed propositions for future research on this complex interplay.
Original languageEnglish
Pages (from-to)204-219
Number of pages16
JournalJournal of Purchasing and Supply Management
Volume21
Issue number3
DOIs
Publication statusPublished - 1 May 2015

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