TY - JOUR
T1 - Acquisition of supply market intelligence – An information processing perspective
AU - Lorentz, Harri
AU - Aminoff, Anna
AU - Kaipia, Riikka
AU - Pihlajamaa, Matti
AU - Ehtamo, Jesse
AU - Tanskanen, Kari
PY - 2020/12
Y1 - 2020/12
N2 - The capability to develop and sustain superior knowledge of markets and supply chains, or supply market intelligence (SMI), is an important element in increasing the strategic relevance of purchasing and supply management (PSM). This study draws on information processing theory (IPT) to shed light on how firms acquire SMI. In particular, the study aims to identify the drivers and mechanisms of information processing in SMI acquisition and to explore how the two constructs are related. Our findings emerged from an abductive multiple case study including 22 SMI tasks in eight case companies operating in various manufacturing industries. We find that the drivers of information processing needs in SMI acquisition are related either to uncertainty or equivocality. Uncertainty describes a situation in which decision-makers may be ignorant of a variable's value while equivocality describes a situation in which they may be ignorant of the variable's existence. We identify four structural mechanisms and three information technology mechanisms for information processing in the SMI context. We also find that equivocality seems to trump uncertainty in determining the use of the identified SMI acquisition mechanisms. In addition to elaborating IPT in the SMI context and exploring the theoretical foundations of SMI, we offer practitioners a framework for supporting the design of SMI practices in procurement organisations.
AB - The capability to develop and sustain superior knowledge of markets and supply chains, or supply market intelligence (SMI), is an important element in increasing the strategic relevance of purchasing and supply management (PSM). This study draws on information processing theory (IPT) to shed light on how firms acquire SMI. In particular, the study aims to identify the drivers and mechanisms of information processing in SMI acquisition and to explore how the two constructs are related. Our findings emerged from an abductive multiple case study including 22 SMI tasks in eight case companies operating in various manufacturing industries. We find that the drivers of information processing needs in SMI acquisition are related either to uncertainty or equivocality. Uncertainty describes a situation in which decision-makers may be ignorant of a variable's value while equivocality describes a situation in which they may be ignorant of the variable's existence. We identify four structural mechanisms and three information technology mechanisms for information processing in the SMI context. We also find that equivocality seems to trump uncertainty in determining the use of the identified SMI acquisition mechanisms. In addition to elaborating IPT in the SMI context and exploring the theoretical foundations of SMI, we offer practitioners a framework for supporting the design of SMI practices in procurement organisations.
KW - Case study
KW - Information processing theory
KW - Knowledge acquisition
KW - Procurement
KW - Supply market intelligence
UR - http://www.scopus.com/inward/record.url?scp=85090120311&partnerID=8YFLogxK
U2 - 10.1016/j.pursup.2020.100649
DO - 10.1016/j.pursup.2020.100649
M3 - Article
AN - SCOPUS:85090120311
SN - 1478-4092
VL - 26
JO - Journal of Purchasing and Supply Management
JF - Journal of Purchasing and Supply Management
IS - 5
M1 - 100649
ER -