O2 Muu julkaisu
When the lowest price is not sufficient – Conditions defining the buyer’s value orientation
Alaotsikko: Conditions defining the buyer’s value orientation
Tekijät: Otto Rosendahl, Harri Terho
Konferenssin vakiintunut nimi: Annual industrial marketing and purchasing conference
Julkaisuvuosi: 2015
Business markets are facing a major shift towards service logic where selling firms’ key focus moves from selling of goods and services towards supporting customers’ business and their profitability. At the same time, supply chain and key supplier relationship management practices have reinforced the buyer’s capabilities to strategic and long-term approaches to buying. As a consequence, while much of contemporary buying continues to be driven by prices and costs, leading business firms are increasingly deploying long-term buying approaches aiming at facilitating their own value creation practices and ultimately business profits. Academic research has made general, mostly conceptual, notions that buying firms employ different purchasing orientations but only little fragmented knowledge exists about the conditions that affect business firms’ approaches to buy. Hence, the purpose of the study is to examine the drivers and contingencies related to purchasing firms’ adoption of a long-term value orientation focusing on the effective resource integration with suppliers for maximizing their value-in-use and long-term monetary business impact. The study builds on key literature from organizational buying behavior, supply management and service-dominant logic for building conceptual ground for studying the business buyer’s value orientation. Based on the conceptual framework and inductive interviews from carefully identified 16 progressive purchasing firms (data collection ongoing) the study develops novel theoretical insights about the key conditions affecting buying firms’ value orientation. The results give concrete guidance for both buying and selling practices.