The influence of the competitive landscape on cross-functional interactions between procurement and engineering. Issue 1 (January 2020)

• Record Type: Journal Article
• Authors: Ashenbaum, Bryan; Blair, Cynthia Wallin; Brewer, Barry
• Is Part Of: Journal of purchasing and supply management. Volume 26:Issue 1(2020)
• Publication Date: 2020-01
• Subjects: Procurement -- Supplier management -- Cross-functional integration -- Case studies -- Qualitative data analysis; Industrial procurement -- Europe -- Management -- Periodicals; Purchasing -- Europe -- Periodicals; Purchasing -- Europe -- Management -- Periodicals; Materials management -- Europe -- Periodicals; Industrial procurement -- Management; Materials management; Purchasing; Purchasing -- Management; Europe; Periodicals; 658.7205
• DOI: 10.1016/j.pursup.2019.100595
• Languages: English
• ISSNs: 1478-4092

Abstract

Abstract: This study assesses the extent to which a firm's external environment shapes the cross-functional interactions between procurement and engineering, utilizing an embedded multiple-case study methodology. In summary, we found that high environmental ambiguity discourages procurement-engineering mutual understanding. High environmental uncertainty with moderate ambiguity, on the other hand, appears to foster both mutual understanding and inter-functional collaboration. Overall, procurement personnel are more optimistic than engineering personnel regarding the performance results stemming from cross-functional integration. Additionally, increasing job tenure for procurement personnel leads to a higher level of perceived integration with engineering, while engineers with longer job tenure report see less value in collaborating with procurement, often creating an asymmetric power distribution with engineering taking a dominating role. Highlights: High ambiguity discourages procurement-engineering mutual understanding. High uncertainty/moderate ambiguity fosters mutual understanding and collaboration. Purchasers report higher performance benefits from collaboration than engineers. Longer-tenured purchasers perceive higher value collaborating with engineering. Longer-tenured engineers perceived lower value collaborating with procurement.