Why Firms should not pursue the same purchasing competitive priorities

• Many companies, when buying, use the same competitive priorities regardless of the category of the product being purchased. This purchasing practice creates misalignment between the purchasing and business strategies of a firm. The main aim of this paper is to theoretically explain why firms should not pursue the same competitive priorities for all purchased product categories. By analyzing most relevant literature and research findings published in peer-reviewed journals, this paper argues that strategic alignment between the purchasing competitive priorities and overall business strategy is of higher priority when buying strategic items than other categories. This research contributes to the field by introducing a conceptual framework that provides a further dimension to the strategic alignment concept. The framework aims to introduce the concept ‘strategic supply relatedness’.

Subject headings

TEKNIK OCH TEKNOLOGIER  -- Maskinteknik -- Produktionsteknik, arbetsvetenskap och ergonomi (hsv//swe)

ENGINEERING AND TECHNOLOGY  -- Mechanical Engineering -- Production Engineering, Human Work Science and Ergonomics (hsv//eng)

Keyword

Industriell ekonomi och organisation

Industrial Engineering and Management

Publication and Content Type

ref (subject category)

kon (subject category)