Aligning Corporate Strategy, Procurement Strategy and E-Procurement Tools
(2003) 15th Annual NOFOMA Conference, 2003 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)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/644301
- author
- Knudsen, Daniel LU
- organization
- publishing date
- 2003
- type
- Chapter in Book/Report/Conference proceeding
- publication status
- published
- subject
- host publication
- International Journal of Physical Distribution & Logistics Management
- volume
- 33
- issue
- 8
- pages
- 720 - 734
- conference name
- 15th Annual NOFOMA Conference, 2003
- conference location
- Oulu, Finland
- conference dates
- 2003-06-12 - 2003-06-13
- 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
- 2016-04-04 09:35:00
- date last changed
- 2023-02-23 22:13:51
@inproceedings{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}},
booktitle = {{International Journal of Physical Distribution & Logistics Management}},
issn = {{0960-0035}},
language = {{eng}},
number = {{8}},
pages = {{720--734}},
title = {{Aligning Corporate Strategy, Procurement Strategy and E-Procurement Tools}},
volume = {{33}},
year = {{2003}},
}