Purchasing orchestration practices – Introducing a purchasing-innovation framework. Issue 2 (March 2022) - Schmelzle, Ulrich
Abstract: This research investigates the purchasing role in enhancing an organization's innovation performance. Taking a purchasing perspective, this research introduces a new purchasing-innovation framework and specific purchasing orchestration (PO) practices related to the acquisition, integration, re-configuration, and commercialization of critical resources to enhance innovation performance. A theory elaboration methodology is applied to broaden the scope of resource orchestration theory (ROT) and introduce PO practices as an essential enabler of innovation. Qualitative interviews with managers from different industries enrich the theory elaboration process. This research contributes to theory by developing the concept of PO and enhancing the theoretical understanding of its meaning. Based on theory and empirical data, this research elucidates the PO practices of resource structuring, bundling, and leveraging support. The purchasing innovation framework explains how open-mindedness and technological uncertainty influence purchasing orchestration practices and innovation performance. Purchasing managers benefit from this research by learning to identify and address potential PO capability gaps and take a holistic perspective on resource management, looking both upstream and downstream in the supply chain. Highlights: This paper presents a purchasing-innovation framework and identifies key orchestration practices as an essential capability. Using the lens of resource orchestration theory, a theory elaboration approach is applied. The research explains how external resources are effectively integrated by purchasing managers. Purchasing orchestration refers to structuring, bundling, and leveraging resource-based capabilities for a competitive edge.