A1 Refereed original research article in a scientific journal
The dual role of supply base knowledge in organizational integration and competitive performance
Authors: Tanskanen, Kari; Laari, Sini; Lorentz, Harri
Publisher: Elsevier
Publication year: 2025
Journal: Journal of Purchasing and Supply Management
Journal name in source: Journal of Purchasing and Supply Management
Article number: 101057
Volume: 31
Issue: 4
ISSN: 1478-4092
eISSN: 1873-6505
DOI: https://doi.org/10.1016/j.pursup.2025.101057
Web address : https://doi.org/10.1016/j.pursup.2025.101057
Self-archived copy’s web address: https://research.utu.fi/converis/portal/detail/Publication/499783035
While prior research has established the instrumental role of supply base knowledge (SBK) –a buying firm's internally accumulated knowledge of its suppliers' capabilities, resources, and performance – in decision-making, its potential to elevate the strategic influence of the purchasing function through symbolic value remains underexplored. This study introduces a novel dual-role framework, positioning SBK both as an instrumental resource that enhances purchasing's purchasing's impact on strategic decision-making and as a symbolic asset that legitimizes its role within the organization. Using data from 229 manufacturing plants across 15 countries, we apply PLS-SEM analysis to examine these mechanisms. Our findings reveal that SBK not only enhances purchasing's strategic involvement and firm performance but also serves as a key enabler for supplier integration in NPD. By distinguishing between instrumental and symbolic knowledge use, this study extends prior literature on purchasing knowledge and internal integration, offering a more nuanced perspective on how firms can leverage SBK for both competitive advantage and organizational legitimacy.
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