The alignment of appropriate firm and supply strategies for competitive advantage

The alignment of appropriate firm and supply strategies for competitive advantage Purpose – Aims to prove that a firm's perception of the strategic nature of supply depends on how it defines its competitive advantage within the marketplace. Design/methodology/approach – Data were collected using a random stratified cross‐sectional design from 142 large manufacturing firms in the UK. Structural equation modelling (SEM) was employed to test the hypothesised model. Findings – Firms defining their competitive advantage as being cost‐focused will generally consider supply as playing merely a cost‐reduction role, i.e. passive and supportive, whereas firms viewing their competitive advantage as being differentiated will see supply as strategic, i.e. as a distinctive capability. Research limitations/implications – This study's single country setting could limit the generalizability of the findings. Replication of the model would require contrasting empirical contexts. Longitudinal as opposed to cross‐sectional data are needed for studying causations. Also future studies should take a multiple‐source as opposed to a single‐source data collection approach. Finally, more empirical research is needed, specifically grounded in the established strategy literature. Practical implications – The model presented allows managers to understand what strategies to follow and which relationship modes to adopt. This study has a number of implications for strategy makers at the level of the firm and within supply. Originality/value – Supply management has so far focused on the wrong question. Instead of “why isn't purchasing strategic?”, it should be “what are the firm's strategic goals and priorities?” This refocusing allows exploration of the linkage between the firm's competitive positioning and priorities and that of supply. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Operations & Production Management Emerald Publishing

The alignment of appropriate firm and supply strategies for competitive advantage

Loading next page...
 
/lp/emerald-publishing/the-alignment-of-appropriate-firm-and-supply-strategies-for-zdqVZIr01y
Publisher
Emerald Publishing
Copyright
Copyright © 2005 Emerald Group Publishing Limited. All rights reserved.
ISSN
0144-3577
DOI
10.1108/01443570510593120
Publisher site
See Article on Publisher Site

Abstract

Purpose – Aims to prove that a firm's perception of the strategic nature of supply depends on how it defines its competitive advantage within the marketplace. Design/methodology/approach – Data were collected using a random stratified cross‐sectional design from 142 large manufacturing firms in the UK. Structural equation modelling (SEM) was employed to test the hypothesised model. Findings – Firms defining their competitive advantage as being cost‐focused will generally consider supply as playing merely a cost‐reduction role, i.e. passive and supportive, whereas firms viewing their competitive advantage as being differentiated will see supply as strategic, i.e. as a distinctive capability. Research limitations/implications – This study's single country setting could limit the generalizability of the findings. Replication of the model would require contrasting empirical contexts. Longitudinal as opposed to cross‐sectional data are needed for studying causations. Also future studies should take a multiple‐source as opposed to a single‐source data collection approach. Finally, more empirical research is needed, specifically grounded in the established strategy literature. Practical implications – The model presented allows managers to understand what strategies to follow and which relationship modes to adopt. This study has a number of implications for strategy makers at the level of the firm and within supply. Originality/value – Supply management has so far focused on the wrong question. Instead of “why isn't purchasing strategic?”, it should be “what are the firm's strategic goals and priorities?” This refocusing allows exploration of the linkage between the firm's competitive positioning and priorities and that of supply.

Journal

International Journal of Operations & Production ManagementEmerald Publishing

Published: May 1, 2005

Keywords: Transaction costs; Economics; Resources; Supply; Structural theory

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month