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External sources of knowledge have become a necessary extension to internal innovation activities (Monteiro, Mol and Birkinshaw, 2017; Rosenkopf and Nerkar, 2001). Collaborations with customers, suppliers, universities or even competitors are a promising way to extend the own knowledge base in order to increase the firm´s innovativeness (Felin and Zenger, 2014; Laursen and Salter, 2006). onsidering this potential set of external partners, suppliers seem to have the largest impact on product innovation (Un, Cuervo-Cazurra and Asakawa, 2010). Yet, suppliers’ innovative potential is limited as described in a case study by Gassmann, Zeschky, Wolff, and Stahl (2010), which further shows how a new venture supplier, commonly referred to as “startup”, has succeed at providing a truly innovative idea (a haptic feedback control device for automobiles). Therefore, startups as a specific knowledge provider have received growing attention (Weiblen and Chesbrough, 2015; Zaremba, Bode and Wagner, 2016). By collaborating with startups, corporations hope to benefit from the startups´ entrepreneurial characteristics, such as alertness, creativity, flexibility and willingness to take risks (Audretsch, Segarra and Teruel, 2014; Criscuolo, Nicolaou and Salter, 2012; Marion, Friar and Simpson, 2012).
This paper focusses on effective teaching and learning methods in the context of a larger project that aims to align objectives in higher education with employer requirements in the field of purchasing and supply management (PSM). The reason is that little is known about which specific skills and competencies of PSM professionals are needed outside academia and which learning objective higher education should incorporate to meet the practical PSM requirements of firms and organisations. Practice as well as literature share the understanding that PSM professionals need a well-balanced mixture of knowledge and soft-skills: the merely explicit know-what (codified knowledge), know-why (theory), know-how (method) and inter- & intrapersonal soft skills.
Gamification has been used in a wide variety of subject-specific education contexts. Examples of such usage in the Supply Chain Management (SCM) context include the oft-played beer distribution game, developed by MIT Sloan School of Management (Forrester, 1961), which simulates the coordination of typical problems in supply chain processes, promoting information sharing and collaboration throughout a supply chain (Sterman, 1984). Purchasing and Supply Management (PSM), a subset of this wider SCM area, focuses on the direct relationships between organisational buyers and suppliers, covering aspects such as establishing trust, identifying and selecting suitable suppliers, managing supplier performance and the overall relationship. A systematic review of the PSM gamified learning literature establishes that there has been limited research to date and that which there is tends to focus on quantitative representations of managing overall supply and demand, using wider SCM elements. This suggests that there are opportunities to gamify PSM learning, in particular focusing on the human element in PSM and developing soft skills, as strong buyer-supplier relationships can generate significant benefits to both parties. To provide a more focused PSM contribution, a second systematic literature review distils the relevant principles, techniques and processes to inform the development of two gamified PSM learning activities. Negotiation and supplier relationship management rely heavily on personal interactions and are both seen as key activities at different stages of the PSM process. The development of the two gamified learning activities is strengthened by being underpinned by a synthesis of the literature review’s key findings, ensuring they are domain-meaningful abstractions of reality, contain rewards and rankings based on clear objectives and have appealing gameplay. It is hoped that this paper provides a platform for future domain specific PSM research and will be of use to educators in this field in developing their own gamified learning.
Nowadays, the human-centric discipline of purchasing and supply management (PSM) is of strategic importance for firms’ success. Within the discipline, scholars address PSM professionals’ skills and provide practitioners with academic insights. Due to changes in the industry environment, changes in the working environment and the task of purchasing professionals are assumed. This paper aims to contribute to the PSM professional skills literature by defining current PSM professionals’ skill gaps as the difference between the acquired skill level and perceived skill importance. Findings show that current PSM professionals feel to be underqualified to abstract the full potential of professional relationships, as buyer-supplier relationships, due to current PSM professionals’ skill gaps.
The global development towards the Fourth Industrial Revolution, the so-called Industry 4.0, is steaming forwards. Where cyber-physical systems connect the physical and digital world, allowing for demand identification, without the need for direct human intervention. Further, Artificial Intelligence supports various parts of operative and strategic purchasing. The new purchasing environment forces purchasing professionals to develop new skills. Research is needed to identify appropriate skill sets. Based on a World-Café method with 82 purchasing professionals, a list of 32 essential future skills in purchasing is composed. Further, the identified skills are ranked and assigned to the roles of the direct and indirect material purchasers.
Purpose:
Industrial revolutions have been induced by technological advances, but fundamentally changed business and society. To gain a comprehensive understanding of the fourth industrial revolution (I4.0) and derive guidelines for business strategy, it is, therefore, necessary to explore it as a multi-facet phenomenon. Most literature on I4.0, however, takes up a predominantly technical view. This paper aims to report on a project discussing a holistic view on I4.0 and its implications, covering technology, business, society and people.
Design/methodology/approach:
Two consecutive group discussions in form of academic world cafés have been conducted. The first workshop gathered multi-disciplinary experts from academia, whose results were further validated in a subsequent workshop including industry representatives. A voting procedure was used to capture participants perspectives.
Findings:
The paper develops a holistic I4.0 vision, focusing on five core technologies, their business potential, societal requests and people implications. Based on the model a checklist has been developed, which firms can use a tool to analyze their firm’s situation and draft their industry 4.0 business strategy.
Originality/value:
Rather than focusing on technology alone – which by itself is unlikely to make up for a revolution – this research integrates the entire system. In this way, a tool-set for strategy design results.
Strategically Aligning Additive Manufacturing Supply Chains for Sustainability and Effectiveness
(2019)
This paper builds on a previously developed framework that integrated additive manufacturing, life-cycle analysis, and value creation (Feldmann & Kirsch, 2019) by exploring conditions related to the life-cycle approach that would require alignment among suppliers, additive manufacturing firms, and customers. This extension creates a bridge to aid implementation of taking a sustainability approach to additive manufacturing. In order to develop this extension, we distinguish between direct/indirect customers and internal/external customers and then create a matrix of incentives and cognitive frames that we believe will help companies interested in large-scale AM improve both the speed and the effectiveness of AM adoption. We provide an organizing framework that managers can use to create a supply chain that is aligned around closed-loop principles that will help speed adoption and move closer to sustainable goals that exist for AM technologies. These include reduced raw material use, reduced scrap and material overage, and reduced rework, and lower transportation costs. The goal is to attain often-conflicting goals of lower long-term costs and decreased environmental footprint. Using our extension, we believe we can provide a useful framework to help managers implementing advanced manufacturing technologies to achieve lower costs and greater environmental sustainability by creating a common supply chain framework around customized, on-demand products.
Purpose
Procurement professionals widely use purchasing portfolio models to tailor purchasing strategies to different product groups’ needs. However, the application of these approaches in hospitals and the impact of a pandemic shock remain largely unknown. This paper aims to assess hospital purchasers’ procurement strategies during the COVID-19 pandemic, the effects of factor-market rivalry (FMR) on strategies and the effectiveness of purchasing portfolio categorizations in this situation.
Design/methodology/approach
This qualitative study of hospital purchasing in the Netherlands is supported by secondary data from official government publications. Semi-structured interviews were conducted with 13 hospital purchasers at large hospitals. An interpretative approach is used to analyze the interviews and present the results.
Findings
The findings reveal that product scarcity forces purchasers to treat them as (temporary) bottleneck items at the hospital level. The strategies adopted largely aligned with expected behavior based on Kraljic’s commodity management model. Adding the FMR perspective to the model helped to further cluster crisis strategies into meaningful categories. Besides inventory management, increasing supply, reducing demand and increasing resource coordination were the other common strategies. An important finding is that purchasers and governments serve as gatekeepers in channeling FMR, thereby reducing potential harmful competition between and within hospitals.
Social implications
The devastating experience of the COVID-19 pandemic is unveiling critical weaknesses of public health-care provision in times of crisis. This study assesses the strategies hospital purchasers apply to counteract shortages in the supply chain. The findings of this study emphasize the importance of gatekeepers in times of crisis and present strategies purchasers can take to assure the supply of resources.
Originality/value
No research has been conducted on purchasing portfolio models and FMR implications for hospitals during pandemics. Therefore, the authors offer several insights: increasing the supply risk creates temporary bottleneck strategies, letting purchasers adopt a short-term perspective and emphasizing the high mobility of commodities in the Kraljic commodity matrix. Additionally, despite more collaboration uncovered in other studies regarding COVID-19, strong rivalry arose at the beginning of the pandemic, leading to increased competition and less collaboration. Given such increased FMR, procurement managers and governments become important gatekeepers to balance resource allocation during pandemics both within and between hospitals.
Identifying Start-Up Partners: Which Search Practices and Combination Strategies are Effective?
(2021)
Start-ups are an important source of novel knowledge and product ideas for incumbents. We investigate which search strategies are positively related to the successful search for start-ups. We identify search instruments and their various uses: intensive or broad; stand-alone or combinatory. Finding 11 search practices in the literature, we evaluate how these practices were used by 97 respondents from a cross-industry and cross-national sample. Our results show that searching broadly and intensively is positively related to a successful search for start-ups and to firms’ radical innovation capability. Specific tools that are positively related to search success are online contacts, desk research, external scouting partners, and start-up pitch events. Decision tree analysis provides effective combinations of search practices that innovation managers and purchasing managers can use. Employing these search practice combinations, we make incumbents aware of the routines used in distant knowledge search. These practices are dynamic capabilities that help them to remain successful in high-velocity markets. In identifying these search practices, we contribute to the literature on innovation routines and dynamic capability research.
Specifying roles in purchasing and supply management in the era of Industry 4.0: A Delphi study
(2021)
New technologies and systems within the field of purchasing and supply management (PSM) call forth responsibilities and require expertise. Moving towards Industry 4.0 in purchasing, increasing attention on specialization within talent and skills, where human capital is needed to exploit the full potential of technologies. Based on an internet-based real-time Delhi study with 47 experts within the PSM field, six future purchasing roles have been defined and elaborated. These future roles connect to the maturing and emerging technologies within the purchasing field and provide a guideline to further develop towards Industry 4.0 in purchasing based on a human-centered evolutionary approach.