Conceptualizing the supplier switching process: an example from public procurement

Anne Maria Holma*, Anu Bask, Antti Laakso, Dan Andersson

*Corresponding author for this work

    Research output: Contribution to journalArticleScientificpeer-review

    1 Citation (Scopus)

    Abstract

    Purpose: This paper aims to develop a framework for switching a service supplier in a supply network. Design/methodology/approach: The study builds on existing literature in the field of purchasing and supply management, public procurement (PP) and the Industrial Marketing and Purchasing approach, as well as on an illustrative example case, from the PP context, of a supplier switch in a service delivery process. Findings: During a switching process, the buyer must simultaneously manage the ending of a relationship with the incumbent supplier and the beginning of a relationship with a new supplier. Collaboration with the focal suppliers to develop a service process with standardized components prevents disruptions in the service processes and reduces the impact of the switch on the wider network. Research limitations/implications: The conceptualization suggested in this paper needs to be further explored in different empirical contexts to assess its practical adequacy. Practical implications: Practitioners responsible for service procurement can use the findings to develop collaboration with suppliers, both when it comes to service process development and to the switching process. Furthermore, the authors highlight the importance of ending competencies and the development of an exit plan to conduct a “beautiful exit.” Originality/value: The paper integrates relationship initiation and ending studies, as well as procurement process models to develop a refined switching process framework. Many PPs rely on short-term relationships due to the legal obligation to frequently invite suppliers to tender, thus understanding the supplier switching process is important both for private and public sector actors.

    Original languageEnglish
    Number of pages12
    JournalJournal of Business and Industrial Marketing
    Early online date19 Nov 2021
    DOIs
    Publication statusE-pub ahead of print - 19 Nov 2021
    MoE publication typeA1 Journal article-refereed

    Keywords

    • Procurement process
    • Public procurement process
    • Service delivery
    • Service supply
    • Supplier network
    • Supplier switching process

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