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Tactics for Cost Reduction and Innovation: Empirical Evidence at the Category Level

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Supply Management Research

Part of the book series: Advanced Studies in Supply Management ((ASSM))

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Abstract

Firms frequently group similar products into ‘sourcing categories’ to realize synergy effects. Purchasing agents use various sourcing tactics to improve performance. However, tactics at the category level, addressing a group instead of a single product, have been neglected by supply management research. Consequently, this paper investigates which tactics contribute to a sourcing category’s cost and innovation performance. Data on sourcing tactics and performance have been collected in a survey including 107 sourcing projects. Structural equation modelling has been used to empirically test for the influence of sourcing tactics on performance. The study extends previous conceptual studies by adding initial empirical evidence about the influence of sourcing tactics on performance. In contrast to previous studies, findings show that price evaluation has an important impact on innovation.

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Hesping, F. (2017). Tactics for Cost Reduction and Innovation: Empirical Evidence at the Category Level. In: Bode, C., Bogaschewsky, R., Eßig, M., Lasch, R., Stölzle, W. (eds) Supply Management Research. Advanced Studies in Supply Management. Springer Gabler, Wiesbaden. https://doi.org/10.1007/978-3-658-18632-6_2

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  • DOI: https://doi.org/10.1007/978-3-658-18632-6_2

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