Daniel Chicksand

Theoretical perspectives in purchasing and supply chain management: an analysis of the literature

Purpose – This paper attempts to seek answers to four questions. Two of these questions have been borrowed (but adapted) from the work of Defee et al.: RQ1. To what extent is theory used in purchasing and supply chain management (P&SCM) research? RQ2. What are the prevalent theories to be found in P&SCM research? Following on from these questions an additional question is posed: RQ3. Are theory-based papers more highly cited than papers with no theoretical foundation? Finally, drawing on the work of Harland et al., the authors have added a fourth question: RQ4. To what extent does P&SCM meet the tests of coherence, breadth and depth, and quality necessary to make it a scientific discipline? Design/methodology/approach – A systematic literature review was conducted in accordance with the model outlined by Tranfield et al. for three journals within the field of “purchasing and supply chain management”. In total 1,113 articles were reviewed. In addition a citation analysis was completed covering 806 articles in total. Findings – The headline features from the results suggest that nearly a decade-and-a-half on from its development, the field still lacks coherence. There is the absence of theory in much of the work and although theory-based articles achieved on average a higher number of citations than non-theoretical papers, there is no obvious contender as an emergent paradigm for the discipline. Furthermore, it is evident that P&SCM does not meet Fabians test necessary to make it a scientific discipline and is still some way from being a normal science. Research limitations/implications – This study would have benefited from the analysis of further journals, however the analysis of 1,113 articles from three leading journals in the field of P&SCM was deemed sufficient in scope. In addition, a further significant line of enquiry to follow is the rigour vs relevance debate. Practical implications – This article is of interest to both an academic and practitioner audience as it highlights the use theories in P&SCM. Furthermore, this article raises a number of important questions. Should research in this area draw more heavily on theory and if so which theories are appropriate? Social implications – The broader social implications relate to the discussion of how a scientific discipline develops and builds on the work of Fabian and Amundson. Originality/value – The data set for this study is significant and builds on a number of previous literature reviews. This review is both greater in scope than previous reviews and is broader in its subject focus. In addition, the citation analysis (not previously conducted in any of the reviews) and statistical test highlights that theory-based articles are more highly cited than non-theoretically based papers. This could indicate that researchers are attempting to build on one anothers work.

Stairways to heaven or treadmills to oblivion? Creating sustainable strategies in red meat supply chains

Purpose – This paper aims to assess the findings of a research project that investigates the scope for lean strategies to be adopted in beef, lamb and pig supply chains.Design/methodology/approach – The paper reports on action research carried out in three red meat supply chains. The methodology is inductive and qualitative, using a multi‐case, multi‐site approach. Each of the supply chains was analysed from farm gate to consumer, interviewing multiple participants at each stage of the supply chain.Findings – The analysis demonstrates that, although a lean approach has been introduced in the pig supply chain, it is much more problematic in beef and lamb supply chains. Furthermore, the majority of participants in the UK pig supply chain – the first to adopt lean strategies – have not received the commercial improvement (the “stairway to heaven” of higher returns) that was anticipated. On the contrary, the majority of participants in this supply chain are experiencing a strategic “treadmill to oblivion” of ...

The proactive alignment of sourcing with marketing and branding strategies: a food service case

Purpose – The purpose of this paper is to show that a proactive sourcing strategy can be just as important as a proactive marketing strategy in achieving sustainable competitive advantage.Design/methodology/approach – The paper reports on action research carried out in the UK beef industry, with a focus on the food service supply chain. The methodology is inductive and qualitative, using a multi‐case, multi‐site approach. The supply chains presented in the case were analysed from farm gate to consumer, interviewing multiple participants at each stage of the supply chain.Findings – This study offers some partial support for configuration‐based approaches. However, the case also raises some doubts about the validity of configuration thinking, as it is not the complexity or ambiguity of the relationships that is key in the case, but the fact that brand ownership and contracts create property rights for their owner that create a relatively permanent power resource for Pioneer, the case study company, in its m...

Outsourcing decisions – the case of parallel production

Purpose – The purpose of this paper is to investigate an underexplored aspect of outsourcing involving a mixed strategy in which parallel production is continued in-house at the same time as outsourcing occurs. Design/methodology/approach – The study applied a multiple case study approach and drew on qualitative data collected through in-depth interviews with wood product manufacturing companies. Findings – The paper posits that there should be a variety of mixed strategies between the two governance forms of “make” or “buy.” In order to address how companies should consider the extent to which they outsource, the analysis was structured around two ends of a continuum: in-house dominance or outsourcing dominance. With an in-house-dominant strategy, outsourcing complements an organizations own production to optimize capacity utilization and outsource less cost-efficient production, or is used as a tool to learn how to outsource. With an outsourcing-dominant strategy, in-house production helps maintain complementary competencies and avoids lock-in risk. Research limitations/implications – This paper takes initial steps toward an exploration of different mixed strategies. Additional research is required to understand the costs of different mixed strategies compared with insourcing and outsourcing, and to study parallel production from a supplier viewpoint. Practical implications – This paper suggests that managers should think twice before rushing to a “me too” outsourcing strategy in which in-house capacities are completely closed. It is important to take a dynamic view of outsourcing that maintains a mixed strategy as an option, particularly in situations that involve an underdeveloped supplier market and/or as a way to develop resources over the long term. Originality/value – The concept of combining both “make” and “buy” is not new. However, little if any research has focussed explicitly on exploring the variety of different types of mixed strategies that exist on the continuum between insourcing and outsourcing.

The micro-politics of operational adjustment : veto players and the consolidation of demand in the NHS

Recent reports about procurement within the NHS have been highly critical. One problem identified in the reports is the fragmentation of NHS demand across an unnecessarily large number of suppliers. This fragmentation is said to increase transaction costs, reduce opportunities for scale economies and reduce NHS leverage over suppliers. It has been suggested, therefore, that an important way of improving procurement in the NHS is the better consolidation of demand with a lower number of preferred suppliers. However, such a policy, because it will create ‘winners’ and ‘losers’ within NHS organisations, has political as well as technical and practical ramifications. In this article, the authors present a model, the Veto Players Model, in order to assist managers to address these political ramifications. In the article, the authors not only demonstrate the utility of this model with regard to demand consolidation policies, but also argue that the model provides useful lessons for change management initiatives more generally.

Total value in business relationships: exploring the link between power and value appropriation

Purpose The purpose of this paper is to consider how value can be better defined and to understand the drivers of value appropriation in business relationships. In doing so, the authors explore the role that power plays in determining the sharing of value in those relationships. Design/methodology/approach This paper contains a conceptual discussion about value and the appropriation of value in business relationships, which leads to the development of a methodology for assessing the sharing of value. Findings In this paper, the authors have developed a view of total value in supply chain relationships. They argue that the value of the relationship is the sum of the customer and supplier value, including both tangible and intangible benefits and sacrifices. In addition, they maintain that the appropriation of value in a business relationship is reliant upon: the power both parties possess; the direct and tangible value each party has to offer; and the indirect and intangible value that each has to offer. They also provide a methodology, which can be used to determine the sharing of value between two actors within a business exchange. Research limitations/implications In arriving at the conceptualisation of total value and in the discussion of value appropriation in business relationships, the authors drew upon extant literature. However, a limitation is that they were unable to fully consider all the academic discourse centred on value and value appropriation. Originality/value The discussion brings together the issues of customer value and supplier value to the concept of “total value”. Thereafter, it links the contentious issue of buyer and supplier power, so as to better understand the appropriation of value in business relationships.