The conductor matters: the impact of purchasing orchestration on organizational performance
Journal of Global Operations and Strategic Sourcing
ISSN: 2398-5364
Article publication date: 22 August 2023
Abstract
Purpose
Organizations increasingly manage innovation projects jointly with suppliers to use external resources to fill internal competencies. However, little is known about the practices of how companies configure internal and external resources to enhance competitiveness. Drawing on resource orchestration theory, this study aims to propose a novel approach to explain organizational performance using purchasing orchestration (PO) as an antecedent. The paper then tests an empirical model to assess the impact of PO practices on innovation and financial performance.
Design/methodology/approach
Cross-sectional survey data from 247 supply chain managers are used to test hypotheses relating PO to performance. SPSS PROCESS is applied to test conditional direct and indirect effects.
Findings
The positive impact of PO practices on innovation and financial performance is confirmed. Results indicate an organization’s entrepreneurial orientation (EO) can strengthen the positive relationship between PO and financial performance. Structuring, bundling and leveraging external resources are introduced as new organizational capabilities.
Research limitations/implications
This research is based on cross-sectional data, and unidimensional constructs are used.
Practical implications
This research guides managers on the innovation process in light of the growing importance of external resources. The manuscript highlights the role of strategic purchasing in establishing new resource capabilities as a competitive advantage.
Originality/value
This research provides new insights into the relationship between purchasing practices and organizational performance and helps better understand the implications of orchestrating supply chain resources. A novel construct, PO, is introduced as a theoretical basis for studying supply chain-enabled innovation.
Keywords
Acknowledgements
Since the acceptance of this article, the following author has updated the affiliations: Daniel A. Pellathy is at the Department of Supply Chain Management, Haslam College of Business, University of Tennessee, Knoxville, TN, USA.
Citation
Schmelzle, U., Pellathy, D.A., Tate, W.L. and Min, J. (2023), "The conductor matters: the impact of purchasing orchestration on organizational performance", Journal of Global Operations and Strategic Sourcing, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JGOSS-11-2022-0114
Publisher
:Emerald Publishing Limited
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