Cross-Functional Influence and the Supplier Selection Decision in Competitive Environments: Who Makes the Call?

Keywords

cross-functional decision making, supplier selection, goal congruence

Abstract

This paper presents the results of a multiple-case study that examines how procurement and engineering personnel share priorities, have a common vision, and influence the supplier selection decision in competitive environments of varying risk and uncertainty. We interviewed 113 procurement and engineering respondents from 26 different companies/business units across up-, mid-, and downstream segments of the oil and gas industry. Following a middle-range theorizing approach, we develop a series of working propositions and theoretical frameworks, utilizing goal congruence theory to sharpen proposition development and create suggested extensions for theory. In general, we find that engineering personnel tend to dominate cross-functional decision making in higher risk environments and that more equal arrangements exist when both risk and uncertainty are low. When competitive environment risk is low but uncertainty is high, considerable disagreement arises over which function “leads” this decision. Higher risk environments drive higher goal congruence through shared vision and consensus on who makes supplier selection decisions.

Original Publication Citation

Brewer, B. B. Ashenbaum, C. Wallin Blair. 2019. “Cross-functional influence and the supplier selection decision in competitive environments: Who makes the call?” Journal of Business Logistics. 40(2), 105-125.

Document Type

Peer-Reviewed Article

Publication Date

2019

Publisher

Journal of Business Logistics

Language

English

College

Marriott School of Business

Department

Marketing

University Standing at Time of Publication

Associate Professor

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