Drivers & capabilities of purchasing to contribute in innovation

This thesis focuses on the role of purchasing in innovation. In today competetice market, innovation is extremly crucial for the firm to survive and improve its performance. Focusing on innovation as a competitive priority, many studies has emphasized the role that purchasing departments can play in innovation. During the recent years the role of purchasing in the companies has experienced a great transformation. Purchasing has become from traditional cost-saving function to strategic department which can be involved in main strategy of the company. The objective of this study is to find out why (enablers, motivations and incentive) and how (capabilities, skills, resources and processes) the purchasing can contribute in innovation. This study sheds light on what are the main capabilities and motivations of purchasing involvment in innovation and examine the role of technological and market uncertainty as contingent factor in the relationship between motivations, capabilities and purchasing contribution to innovation. To develop this thesis and answer the research question first, the thorough description of purchasing, innovation and how they link toghether is provided. The systematic literature review of 79 peer-reviewed articles, published between 1976 and 2018 carried out. Systematic review aims to review of clearly formulated questions to identify, select, and critically evaluate research according to relevant criteria. In this study, Durach (2017) systematic literature review methodology is followed to assure literature searching, screening, and reporting validity. Next, a case study conducted to go more deeply on what are the key motivation and capabilities in specific industry. This type of approach can increse the validity of research since would allow to combinie literature knowledge with empirical data from the real examples. Based on a case study of a sport equipment manufacturing company, this thsis sheds light on which capabilities and motivations impacts on a purchasing’s contribution to innovation. Based on the case study findings, this study propose that purchasing involvement in different phases of innovation (exploration, absorption and exploitation), under diffrerent level of technological and market uncertain requires a different sets of capabilities and motivations.