Individual modes and patterns of rational and intuitive decision-making by purchasing managers

A strategic management process: the role of decision-making style and organisational performance

Purpose

The purpose of this paper is to present a conceptual framework for integrating strategic thinking factors, organisational performance and the decision-making process.

Design/methodology/approach

The methodology involves a synthesis of literature and proposes a framework that explores the relationship between strategic thinking enabling factors, organisational performance and the moderating effect of decision-making styles.

Findings

The framework includes strategic thinking enabling factors (systems perspective, focused intent, intelligent opportunism, thinking in time and hypothesis-driven analysis), organisational performance and the moderating effect of decision-making styles (intuitive and rational).

Research limitations/implications

This research results in a conceptual model only; it remains to be tested in actual practice. The expanded conceptual framework can serve as a basis for future empirical research and provide insights to practitioners on how to strengthen policy development in a strategic planning process.

Originality/value

A paradigm shift in the literature proves that strategic management and decision-making styles are vital in determining organisational performance. This paper highlights the importance of decision-making styles and develops a framework for strategic management by analysing the existing strategic management literature.

Adoption of AI in response to COVID-19-a configurational perspective

Although the importance of artificial intelligence (AI) has often been highlighted in strategic agility and decision outcomes, whether it helps firms strengthen their competitiveness and the means firms use to achieve such competitiveness are still under-researched. Our research thus joins the recent discussion on digitalization trends and strategic responses to COVID-19 to better understand how firms strengthen their competitiveness during such challenging times. Namely, this study incorporates the strategic responses to COVID-19 into the technology-organization-environment (TOE) framework by investigating the impacts of different configurations of TOE contexts and strategic responses on a firm's competitive advantage. We used fuzzy-set qualitative comparative analysis to investigate how TOE contexts and strategic responses integrate into configurations and impact a firm's competiveness. By applying a configurational approach with data from 514 exporting firms in China, we find a strong indication of the equifinality of different strategies, indicating that multiple strategic paths can be used to respond to crises. The adoption of AI, while important, is not sufficient to enhance a firm's competitiveness. Our results stress the significance of data quality, organizational resources and capabilities, and digital business model innovation for AI adoption. We also identify successful strategic paths of AI adoption aversion and ambidextrous strategies. The findings have practical implications for firms seeking effective strategies to respond to future crises and sustain their competitive advantages.

Intuitive global sourcing – a study of supplier selection decisions by apparel SMEs

Purpose

The purpose of this paper is to create knowledge on the intuitive global sourcing process applied by small and medium-sized enterprise (SME) managers.

Design/methodology/approach

This study reports on qualitative inquiries with experienced sourcing managers from 10 SMEs in the textile industry. The study follows a three-step semi-structured interviewing process, allowing us to gradually unveil the detailed nature of the intuitive supplier selection process.

Findings

Nine of the 10 SMEs rely on a highly intuitive supplier selections process, where one supplier at a time is gradually taken into the exchange while testing the supplier’s behavior. The process consists of an early heuristics sub-process, which gradually switches over to a more advanced intuiting behavioral pattern-matching process.

Practical implications

Most OM/SCM research has treated global sourcing and supplier selection as a highly rational, analytical and deliberate optimization problem. This study uncovers a completely different, and frequently successful, intuitive process, which could inspire managers in companies of all sizes, faced with high uncertainty about global supplier selection decisions.

Originality/value

Intuition has recently been adopted in the global sourcing literature. However, this study is the first to offer detailed insights into a predominantly intuitive global sourcing process, specifically as it is managed by SMEs.

The need for management education of healthcare management employees

Given the wide professional discussion on the dominating professional focus of healthcare managers at the expense of management knowledge, the main goal of this paper is to verify the extent, to which management education of healthcare workers affects the level of their management skills.

METHODOLOGY

The Descriptive statistics methods have been used to answer research questions regarding the differences in the perception of the managerial skills and their disposition importance between managers with a completed management education and without it. Emphasis was placed on people management skills and communication skills. The research sample consisted of 253 healthcare managers.

RESULTS

Managers with a completed specialized management study are characterized by higher values of entrepreneurial competences and communication skills. They also have exceptional skills in the area of initiator of change. Another significant difference is the higher adaptation of roles and low critique of their subordinates. They are oriented at workers and relationships with them.

CONCLUSION

Our results show that management education of healthcare managers significantly contributes to the implementation of newer approaches to people management and the use of the necessary management skills, which are a source of higher efficiency in the context of the present world of work and its challenges.

Archetypes of sourcing decision-making

Purpose

The purpose of this paper is to develop taxonomy of sourcing decision-making (SDM) archetypes and explore how different contextual factors influence these archetypes when global sourcing of complex components is considered a viable option.

Design/methodology/approach

A multiple case study approach with five in-depth cases is employed. In total, 19 interviews as well as publicly available and internal data from large buying firms headquartered in Austria and Germany were collected and analyzed.

Findings

The results reveal three different SDM archetypes which are described in detail (i.e. “consensus,” “argumentation” and “cabal”). Furthermore, it is found that these archetypes are mainly influenced by three contextual factors: sourcing maturity, product complexity and leadership style. The final model comprises six propositions which illustrate how these contextual factors determine companies’ SDM archetypes.

Research limitations/implications

The study contributes to theory development at the intersection of organizational buying behavior and the (global) SDM literature. Thereby, it answers the call for more rigorous investigation of the influence of contextual factors on SDM processes.

Practical implications

The findings enable practitioners to better understand and consequently manage SDM processes and their outcomes. By supporting decision-makers in identifying SDM archetypes, this study allows sourcing managers and teams to make better decisions by avoiding problems that occur in situations in which the preferred decision-making type would result in suboptimal decisions.

Originality/value

The study provides a first step toward taxonomy of SDM archetypes and is among the first that explores their underlying contextual factors.

Purchasing and supply management skills revisited: an extensive literature review

Purpose

Research on purchasing managers and their skills requirements supports the training and education of purchasing professionals. This paper offers an in-depth analytical review of the purchasing skills reported in the supply chain management (SCM) literature. The purpose of this paper is to highlight the most important skills and factors that influence these skills.

Design/methodology/approach

This paper employs a systematic literature review methodology. Two databases, Scopus and Web of Science, are searched for relevant articles. The selected journal articles are used as sources to obtain a view not only on the relevant purchasing and supply management (P/SM) skills, but also on factors that emphasize certain P/SM skills. This paper also summarizes the ten skills ranked as most important (often described as the “top ten”) among the sample articles.

Findings

The paper highlights the essential skills for purchasing professionals, verified both by their frequent appearances in rankings and by citation frequency in the literature. Generic managerial skills, such as communication, cost analysis, teamwork, problem-solving, negotiation, influencing, and persuasion, as well as information technology skills, received the most attention in the literature and rankings of the “top ten” P/SM skills. This paper provides a refined categorization of purchasing skills, which have merged recently with other discussed skills, such as political and entrepreneurial ones, into this categorization. This paper identifies factors that affect purchasing managers’ skills requirements.

Originality/value

This paper presents a structured overview of 57 peer-reviewed articles from high-quality journals about purchasing skills. The review contributes to the purchasing skills literature by showing the most relevant skills and the factors that influence skills requirements. These factors also provide arenas for further research related to purchasing skills.