Supply market orientation: a dynamic capability of the purchasing and supply management function

Foerstl, Kai, Kähkönen, Anni-Kaisa, Blome, Constantin and Göllner, Matthias (2020) Supply market orientation: a dynamic capability of the purchasing and supply management function. Journal of Purchasing and Supply Management. ISSN 1478-4092 (Accepted)

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Purpose This study conceptualizes supply market orientation (SMO) for the purchasing and supply chain management function and discusses how SMO capabilities are developed and how their application differs within and across firms. Our research can thus be used as a blueprint for the development of a SMO capability that accommodates a firm’s unique contextual antecedents’ profile.

Design/methodology/approach The qualitative research design comprises five in-depth case studies with 43 semi-structured interviews with large manufacturing and service firms.

Findings Supply market orientation is defined as the capability to exploit market intelligence to assess, integrate, and reconfigure the heterogeneously dispersed resources in purchasing and supply chain management in a way that best reflects the peculiarities of a firm’s supply environment. The empirical analysis shows that although SMO capabilities are configured similarly, their application varies across and within firms depending on the characteristics of a firm’s purchasing categories and tasks. Hence, reactive versus proactive supply market orientation application is contingent upon firm-level and purchasing category–level characteristics.

Originality/value The study uses the dynamic capabilities view as a theoretical background and provides empirical evidence and theoretical reasoning to elaborate and endorse SMO as a dynamic capability that firms need to have to compete in a complex and dynamic environment. The study provides guidance for supply chain managers on how to successfully develop and deploy a SMO capability.

Item Type: Article
Keywords: Purchasing, Market orientation, Market intelligence, Supply-chain management, Dynamic capability, Integration
Schools and Departments: University of Sussex Business School > Management
SWORD Depositor: Mx Elements Account
Depositing User: Mx Elements Account
Date Deposited: 06 Aug 2020 07:58
Last Modified: 12 Oct 2020 13:07

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