The dual role of supply base knowledge in organizational integration and competitive performance

: Tanskanen, Kari; Laari, Sini; Lorentz, Harri

Publisher: Elsevier

: 2025

: Journal of Purchasing and Supply Management

: 101057

: 31

: 4

: 1478-4092

: 1873-6505

DOI: https://doi.org/10.1016/j.pursup.2025.101057

: https://doi.org/10.1016/j.pursup.2025.101057

: 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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