How does strategic agenda building affect valuation of supply resources and sourcing policies? A case from the food industry

Abstract

Purpose

Business strategy issues increasingly concern value realized from supply resources. However, how supply resources are valorized by managerial factions in a strategic issue setting is not sufficiently explored. In organizations operating in complex business contexts, several strategic agendas and supply value perceptions typically coexist. This study aims to explore the process of developing corporate attention towards supply-related strategic issues and how it links to sourcing strategy.

Design/methodology/approach

An explorative longitudinal case study within the food industry is conducted. Data are collected in a four year period. Working physically from the case company made it possible to be close to the company’s actors. The first author participated in 26 formal team meetings ranging from 1.5 h to 3 days long, conducted 28 interviews across managerial levels and functions and participated in informal verbal and written communications.

Findings

This study explores strategizing efforts of organizations and scrutinize consequences of strategic ambiguity for sourcing strategy and supply resources. Furthermore, this study outlines implications for management and theory development.

Research limitations/implications

Since this paper is based on an in-depth single case study, its findings are not empirically generalizable.

Practical implications

This paper suggests that managers should pay stronger attention to constituents’ valuation of supply resources, and how they fit with the different strategic agendas within the firm. By doing so, a more comprehensive supply resource mobilization is possible.

Originality/value

Business strategy research increasingly focuses on the value of supply resources for a buying firm’s business strategy (Kotabe and Murray 2018; Lee and Rammohan 2017; Schiele, Calvi, and Gibbert 2012). In a context where the value obtained from sourcing is gaining increased importance, more organizations link supply policies with corporate strategic goals (Andersen, Ellegaard, and Kragh 2016; Hesping and Schiele 2015; Pardo et al., 2011). However, existing supply chain research does not incorporate an organization’s strategizing efforts, when considering supply resource valuation, and how this can be a source of ambiguity to sourcing strategy. The is the paper’s contribution.