A conceptual model and analytical framework for studying purchasing & supply management within SMEs

Date
2014-04-30
Authors
Hagelaar, G
Staal, A
Walhof, G
Supervisor
Item type
Conference Contribution
Degree name
Journal Title
Journal ISSN
Volume Title
Publisher
University of South Africa - UNISA
Abstract

Abstract: The central objective of this conceptual paper is to gain a better understanding under what circumstances purchasing and supply activities within Small & Medium-sized Enterprises (SMEs) are managed. Purchasing & Supply Management (PS Management) within SMEs differs from that in large enterprises. SMEs have different organisational settings and are not small versions of large enterprises. Whilst there is abundant literature on SMEs as well as on PSM, there is only little literature on PSM within SMEs. PSM research within SMEs must consider specific characteristics such as informal organisation, less specialization in business functions and less available resources. SME management will focus more on the overall operations and less on specific business functions. The approach of SME management to inward-bound purchasing and supply activities is often holistic; its approach to outward-bound purchasing and supply activities is characterized by a relative dependent position in supply chains. This paper proposes a conceptual model to explain the relationship between the governance of purchasing and supply activities and their purchasing and supply performance. The paper adopted the Transaction Cost Theory (TCT) with levels of integration to describe five governance types. To explain the relation between these governance types and performance, the paper includes the TCT-related moderating variables general uncertainty (macro and meso environment) and asset specificity (meso environment). It also introduces the moderating variables SME characteristics and management characteristics and business model. From this conceptual model the paper then develops an analytical framework which describes the five governance types and the circumstances under which they are ideal-typically sustained. The conceptual model and analytical framework combine different domains of literature to enhance the understanding of the different forms of purchasing and supply activities within an SME context. Combining these different domains gives beneficial insights that cannot be found in the separate literature domains. The applying model and framework in empirical research will enable the design of management instruments. Hence this paper is a starting point into purchasing and supply management research within SMEs aimed at supporting SMEs in their performance.

Description
Keywords
Conceptual , Small and Medium-sized Enterprises (SMEs) , procurement , Purchasing and Supply (PS , PSM) , PS governance , PS activities , Transaction Cost Theory
Source
International Purchasing Supply Education Research Association held at Pretoria, South Africa, 2014-04-13 to 2014-04-16, published in: 23rd Annual IPSERA Conference Proceedings South Africa 2014, vol.23rd Annual Proceedings (Purchasing and Supply Management in difficult times - the sky is the limit), pp.231 - 248 (17)
DOI
Rights statement
NOTICE: this is the author’s version of a work that was accepted for publication. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in (see Citation). The original publication is available at (see Publisher's Version).