Market orientation dynamic capability – a catalyst for purchasers’ core competencies to achieve innovative performance during supplier collaboration

Abstract

Purpose

This study aims to investigate purchasing manager’s core competencies during supplier collaboration and explain the mechanism through which these competencies can affect purchasing firm’s innovative performance.

Design/methodology/approach

The authors conducted 22 semidirective interviews with managers in diverse functions such as purchasing, supply-chain management and product development across industries and across nations (mostly India and France), which allow to formulate the propositions.

Findings

Through open coding, the authors identify three path-dependent, causally ambiguous and socially complex core competencies of purchasing managers: relational and emotional, communicational and creative and cognitive competencies; and through axial coding, the authors explain how these intangible core competencies support implementation of market orientation. To provide supporting arguments for the propositions, the authors use the resource-based view of the firm and dynamic capability theory.

Research limitations/implications

The first theoretical contribution of this study is focusing on the impact of competency–capability dyad in terms of performance. The second theoretical contribution of this study is to identify market orientation as a flexible and dynamic managerial capability.

Practical implications

The first managerial contribution is that the authors have identified and described three sets of a purchasing manager’s core competencies during supplier collaboration that affect the firm’s performance: relational and emotional, communicational and creative and cognitive competencies. The second managerial contribution relates to the mechanism through which purchasing managers’ core competencies during supplier collaboration affect firms’ outcomes.

Originality/value

The value of the results is in the explanation of the mechanism, i.e. market orientation dynamic capability, through which the competencies of purchasing managers can affect purchasing firm’s innovative performance.