The alignment performance link in purchasing and supply management

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In today's competitive markets, companies must navigate international competition, rapid technological advancements, and heightened customer expectations. This environment compels managers to concentrate on core competencies, leading to a decline in in-house value across industries. Consequently, effective supplier selection and management have emerged as crucial factors for success. Purchasing and supply management (PSM) has become a vital tool for enhancing competitive advantage in areas such as cost, quality, and innovation. However, the effectiveness of PSM hinges on its alignment with the overall business strategy; only then can it significantly boost profitability. Despite its importance, existing research lacks the theoretical frameworks and empirical evidence necessary to guide practitioners on achieving this alignment and understanding its impact on performance. The doctoral thesis by Christian Baier addresses this gap by developing and testing a comprehensive model linking alignment and performance in PSM. Utilizing insights from various theoretical perspectives, the author establishes a robust theoretical foundation for understanding the interplay between business strategy and functional strategies. By applying the theory of production competence to PSM, two critical levels of alignment are identified: strategic alignment, which is essential for maximizing organizational performance.