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Cost versus Innovation Leaders: When do they need Supply Network Mapping? The impact of SNM on purchasing performance

  • Buying firms lack transparency about the supplier relationships in their networks. The applica-tion of dedicated tools such as Supply Network Mapping (SNM) can help to visualize and analyze these relationships. However, the impact of such tools on the purchasing performance has not been explored yet. Moreover, companies with different competitive strategies might have different motivations to use these tools. Therefore, this paper tests the impact of supplier relationship information and SNM on the purchasing performance on a large sample of 624 purchasers. A multi-group analysis in structural equation modeling estimates the impact of a cost leadership versus a differentiation strategy on cost saving and innovation performance. We show that information quality and SNM indeed improve the purchasing performance. Moreover, cost leaders use SNM if they know their supplier relationships with sub-suppliers, while innovation leaders use it if they know their supplier relationships with other customers. Hence, our results prove the usefulness of the SNM tool and give recommendations for its use depending on a company’s competitive strategy.

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Author:Wolfgang Buchholz, Antonia Kappel, Holger Schiele
Parent Title (English):IPSERA Conference proceedings
Document Type:Conference Proceeding
Language:English
Date of Publication (online):2019/07/24
Year of first Publication:2019
Provider of the Publication Server:FH Münster - University of Applied Sciences
Release Date:2019/07/25
First Page:1
Last Page:19
Faculties:Wirtschaft (MSB)
Publication list:Buchholz, Wolfgang
Licence (German):License LogoBibliographische Daten