Brian Squire

An empirical taxonomy of purchasing functions

Purpose – The purpose of this paper is to investigate the different patterns of purchasing function configuration, and the relationship between such patterns and organisational performance.Design/methodology/approach – Despite considerable attention, there is little evidence showing the current situation toward the development of purchasing functions within organisations. Through quantitative data collected from 151 UK purchasing executives, cluster analysis is used to uncover and characterize four purchasing function configurations.Findings – Four configurations, termed strategic, capable, celebrity, and undeveloped, were identified according to the characteristics they possess. Significant differences in supplier‐ and organisational‐related performance outcomes were found across these four purchasing function configurations. Purchasing skills were also shown to be a precondition for purchasing to exert influence within the organisation.Research limitations/implications – A cross‐sectional survey provide...

Performance Measurement in Strategic Buyer-Supplier Relationships: The Mediating Role of Socialization Mechanisms

Purpose – Close links between buyers and suppliers are increasingly cited as a critical differentiator of high and low performers in global supply chains. While the application of performance measures to manage supplier relationships has been well‐identified and encouraged in the literature, comparatively little research exists on the inter‐organizational socialization mechanisms that underlie the flow of learning and information within supply chains. The authors aim to develop a model positing that socialization mechanisms play an important role in mediating the relationship between supplier performance measures and performance outcomes.Design/methodology/approach – A structural equation model, using a sample of 142 manufacturing and service firms based in the UK, tests this hypothesised model.Findings – The theoretical framework was supported, with results indicating that socialization mechanisms fully mediate the effects of supplier performance measures (communication and operational‐based) on firm per...

Cooperation and Knowledge Transfer within Buyer–Supplier Relationships: The Moderating Properties of Trust, Relationship Duration and Supplier Performance

This paper examines the effect of relational factors on knowledge transfer within strategic buyer–supplier exchange. Prior research examining inter-firm knowledge transfer has focused almost exclusively on horizontal forms of governance such as strategic alliances and joint ventures, whilst research on vertical forms, such as buyer–supplier relationships, is limited. We test the effect of four important relational properties: cooperation, trust, relationship duration and supplier performance. Quantitative data, gathered from 104 UK manufacturing firms in eight industry sectors, are used to analyse the hypothesized relationships through a moderated hierarchical regression model. Our study provides support for the importance of considering relational factors in the transfer of knowledge at the inter-organizational level. In particular, the results indicate that knowledge transfer is positively influenced by the extent of cooperation, but that this relationship is moderated by the level of trust and the performance of the supplier firm. Managerial implications for these findings and future directions for research are then offered.

The contribution of manufacturing strategy involvement and alignment to world-class manufacturing performance

Purpose - The purpose of this paper is to explore links between the process of strategy formulation and subsequent performance in operations within firms. Design/methodology/approach - An in-depth literature review on resource-based and operations strategy naturally led to three hypotheses. These are then tested using evidence from field-based case studies of manufacturing/assembly plants in the computer industry. Findings - The research suggests that world-class plants incorporate both strategic operations content and strategic operations processes, whilst low-performing plants do not. Practical implications - It is argued that involving manufacturing/operations managers in the strategic planning process helps align manufacturing and business strategy, and this alignment is associated with higher manufacturing performance. This should be of interest to operations managers and strategists within firms. Originality/value - By linking strategic alignment and the manufacturing strategy process to world-class manufacturing practices and performance, this research adds a new dimension to the study of world-class manufacturing and more generally to the best practices and practice-performance debates.

Supply chain management: theory and practice – the emergence of an academic discipline?

Purpose – To introduce the special issue focusing on the question: is supply chain management (SCM) an emerging academic discipline?Design/methodology/approach – A brief discussion of the papers in the special issue.Findings – Outlines how the papers stimulate debate on the nature and development of SCM and indicates that there is an intense research effort being conducted around the world in this field.Originality/value – Provides a summary of the perspectives considered within the issue.

Modularization and the impact on supply relationships

Purpose – This paper aims to examine the role of product architecture in supply chain design. Specifically, it seeks to resolve confusion over the impact of modularisation on supplier relationship management. On the one hand, the introduction of modularisation suggests that buyer and supplier firms should move towards greater collaboration in order to co‐develop products and reduce interface constraints. On the other hand, the standardisation of interfaces suggests that buyer firms could introduce a “black box” approach to component design, holding suppliers at arms‐length and reducing dependence. These conflicting views form the focus of the research: under what conditions does modularity lead to increasing collaboration?Design/methodology/approach – The data are drawn from UK manufacturing firms across eight industry sectors using a sample from the Conquest Business Media database. Three hypotheses are tested through a three‐step hierarchical regression analysis.Findings – The findings provide support ...

Knowledge transfer within cooperative buyer-supplier relationships: the moderating impact of trust, relationship duration and supplier performance

This paper examines the effect of relational factors on knowledge transfer within strategic buyer–supplier exchange. Prior research examining inter-firm knowledge transfer has focused almost exclusively on horizontal forms of governance such as strategic alliances and joint ventures, whilst research on vertical forms, such as buyer–supplier relationships, is limited. We test the effect of four important relational properties: cooperation, trust, relationship duration and supplier performance. Quantitative data, gathered from 104 UK manufacturing firms in eight industry sectors, are used to analyse the hypothesized relationships through a moderated hierarchical regression model. Our study provides support for the importance of considering relational factors in the transfer of knowledge at the inter-organizational level. In particular, the results indicate that knowledge transfer is positively influenced by the extent of cooperation, but that this relationship is moderated by the level of trust and the performance of the supplier firm. Managerial implications for these findings and future directions for research are then offered.

A contingent perspective of open innovation in new product development projects

Studies of open innovation are predominantly concerned with firm-level strategy development. The result is that the literature has largely ignored the multiple contingencies that influence the implementation of an open strategy at the level of the NPD project. In this paper, we develop a conceptual framework of inbound open innovation at the NPD project level to assess factors that help determine the degree of openness along three dimensions. We argue that the margin of managerial action is not only constrained to the decision to open up the NPD project to a wide range of different types of external parties (breadth dimension), but that it is equally important to consider the depth of the relationships with different types of external parties (depth dimension) and the balance between the development of new and longstanding relationships (ambidexterity dimension). The calibration of these three dimensions represents the levers when managing an inbound open innovation strategy during an NPD project. Finally, we identify a range of contingencies, which potentially have a bearing on the appropriate calibration of the breadth, depth and ambidexterity dimensions of an open innovation strategy. We argue that appropriate calibration of the three dimensions of inbound open innovation is determined by the type of innovation (radical versus incremental), product complexity (discrete versus complex) and the appropriability regime (tight versus weak).

Mass customisation: the key to customer value?

The purpose of this paper is to ask the question – does mass customization really hold the key to customer value? It is argued that while mass customization can, and often does, increase the value of an offering, it is not always the case. In other words, mass customization does not represent the best strategy for all firms in all cases. Neoclassical economists tend to examine the concept of value in terms of utility. Utility is a measure of satisfaction a consumer receives from consumption of goods or services. Utility theory states that consumers spend their income to maximize their satisfaction or utility (Bowman and Ambrosini 2000). In this light, the concept of value delves deeper into the reasons behind consumer choice; in other words, how do consumers decide which offering will bestow maximum utility? For example, Zeithaml incorporates the notion of utility in her definition but goes further to encompass the basis on which utility is assessed, i.e. through what is given and what is received. It is critical that manufacturing firms understand whether their customers (existing and potential) really do value customization. The paper introduces the responsive agility tool that may provide the basis for an informed decision. The tool differentiates a number of value criteria and a method of selecting between them. Further, the tool identifies four levels of customization distinguished by secondary value criteria. We provide a case study demonstrating how the tool may operate in practice. The case study suggests that the tool may effectively differentiate customer types according to their value criteria. Finally the paper proposes that a value judgement is dependent on the negotiated process between a manufacturer and customer.

The impact of inclusive and fragmented operations strategy processes on operational performance

The links between strategy and performance remains an elusive ‘holy grail’ for researchers and practitioners alike. We do not seek to provide a prescriptive panacea in this paper but we find links between particular types of strategic formulation and operations performance in a range of key parameters. Our research focuses on the personal computer industry where there are high demands placed on the capabilities of the operations function. We suggest that such capabilities do not happen by accident but are developed by specific strategies whereby in-house operations and business mainstream strategies, including supply, become closely linked in both planning and implementation.