Advanced

Aligning corporate strategy, procurement strategy and e-procurement tools

Knudsen, Daniel LU (2003) In International Journal of Physical Distribution & Logistics Management 33(8). p.720-734
Abstract
This paper presents a framework for assessing alignment between corporate strategy, procurement strategy and purchasing tools. The framework is built on generation of rents as its common denominator for assessing alignment between the levels. Three types of rents are identified: monopoly rents; Ricardian rents and entrepreneurial rents. The framework is then used for assessing the strategic origin of the following e-procurement applications: e-sourcing, e-tendering, e-informing, e-reversed auctions, e-MRO, Web-based enterprise resource planning and e-collaboration. The results indicate that the e-procurement tools are fully viable for creating monopoly rents, moderately viable for creating Ricardian rents and only somewhat viable for... (More)
This paper presents a framework for assessing alignment between corporate strategy, procurement strategy and purchasing tools. The framework is built on generation of rents as its common denominator for assessing alignment between the levels. Three types of rents are identified: monopoly rents; Ricardian rents and entrepreneurial rents. The framework is then used for assessing the strategic origin of the following e-procurement applications: e-sourcing, e-tendering, e-informing, e-reversed auctions, e-MRO, Web-based enterprise resource planning and e-collaboration. The results indicate that the e-procurement tools are fully viable for creating monopoly rents, moderately viable for creating Ricardian rents and only somewhat viable for creating entrepreneurial rents. Therefore, it is necessary to first understand how the firm generates rents before procurement strategy and e-procurement tools are implemented in order to avoid misalignment. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
International Journal of Physical Distribution & Logistics Management
volume
33(8)
pages
720 - 734
publisher
Emerald Group Publishing Limited
external identifiers
  • Scopus:19944400570
ISSN
0960-0035
language
English
LU publication?
yes
id
0834cdd2-b134-4e3d-8449-55b23d22657f (old id 644278)
date added to LUP
2008-02-05 09:20:25
date last changed
2016-10-13 04:28:53
@misc{0834cdd2-b134-4e3d-8449-55b23d22657f,
  abstract     = {This paper presents a framework for assessing alignment between corporate strategy, procurement strategy and purchasing tools. The framework is built on generation of rents as its common denominator for assessing alignment between the levels. Three types of rents are identified: monopoly rents; Ricardian rents and entrepreneurial rents. The framework is then used for assessing the strategic origin of the following e-procurement applications: e-sourcing, e-tendering, e-informing, e-reversed auctions, e-MRO, Web-based enterprise resource planning and e-collaboration. The results indicate that the e-procurement tools are fully viable for creating monopoly rents, moderately viable for creating Ricardian rents and only somewhat viable for creating entrepreneurial rents. Therefore, it is necessary to first understand how the firm generates rents before procurement strategy and e-procurement tools are implemented in order to avoid misalignment.},
  author       = {Knudsen, Daniel},
  issn         = {0960-0035},
  language     = {eng},
  pages        = {720--734},
  publisher    = {ARRAY(0x7d2bee0)},
  series       = {International Journal of Physical Distribution & Logistics Management},
  title        = {Aligning corporate strategy, procurement strategy and e-procurement tools},
  volume       = {33(8)},
  year         = {2003},
}