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Aligning Corporate Strategy, Procurement Strategy and E-Procurement Tools

Knudsen, Daniel LU (2003) 15th Annual NOFOMA Conference, 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 (utilising market power, squeezing out cost), Ricardian rents (realising value from scarce intrafirm resources or constellation of interfirm resources), and entrepreneurial rents (seizing opportunities that arise from innovations). 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 ERP, and e-collaboration. The results... (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 (utilising market power, squeezing out cost), Ricardian rents (realising value from scarce intrafirm resources or constellation of interfirm resources), and entrepreneurial rents (seizing opportunities that arise from innovations). 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 ERP, 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)
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author
organization
publishing date
type
Chapter in Book/Report/Conference proceeding
publication status
published
subject
in
International Journal of Physical Distribution & Logistics Management
volume
33
issue
8
pages
720 - 734
conference name
15th Annual NOFOMA Conference, 2003
external identifiers
  • Scopus:19944400570
ISSN
0960-0035
language
English
LU publication?
yes
id
e3dc103a-3d88-4ec0-8a55-f9a8e775afcd (old id 644301)
date added to LUP
2008-02-06 08:55:11
date last changed
2016-10-13 04:33:15
@misc{e3dc103a-3d88-4ec0-8a55-f9a8e775afcd,
  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 (utilising market power, squeezing out cost), Ricardian rents (realising value from scarce intrafirm resources or constellation of interfirm resources), and entrepreneurial rents (seizing opportunities that arise from innovations). 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 ERP, 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},
  number       = {8},
  pages        = {720--734},
  series       = {International Journal of Physical Distribution & Logistics Management},
  title        = {Aligning Corporate Strategy, Procurement Strategy and E-Procurement Tools},
  volume       = {33},
  year         = {2003},
}