Anatone 2016
Anatone 2016
Anatone 2016
a r t i c l e i n f o a b s t r a c t
Article history: This paper explores the potential contribution that purchasing KIBS may have on innovation at the buying firm. It
Received 26 October 2015 integrates the results of a systematic literature review on purchasing KIBS with literatures respectively on pur-
Received in revised form 19 February 2016 chasing and KIBS contribution to innovation. Based on the outcomes of an extensive study of the literature, a the-
Accepted 21 April 2016
oretical framework is proposed in order to understand what could boost innovation outcomes of purchasing
Available online 27 May 2016
KIBS, especially for the buying firms. The framework suggests observing the KIBS triad configuration, i.e. the re-
Keywords:
lationship between KIBS providers, the purchasing function and the user area within the buying firm, and its con-
KIBS tingencies and characteristics. Overall, the paper suggests that the way KIBS are purchased can influence their
Professional services effect on the innovation they generate, offers insights on aspects that need to be considered to increase potential
Purchasing innovation outcomes, and draws attention to the strategic role that purchasing can play in this context. In this
Integration way, it moves beyond the debate on purchasing involvement in NPD (new product development) and shows an-
Innovation other domain (KIBS services) in which purchasing can contribute to the development of innovation.
© 2016 Elsevier Inc. All rights reserved.
http://dx.doi.org/10.1016/j.indmarman.2016.05.024
0019-8501/© 2016 Elsevier Inc. All rights reserved.
S. D'Antone, J.B. Santos / Industrial Marketing Management 58 (2016) 172–186 173
The background presented helps to understand why KIBS represent such as knowledge spillovers across sectors, contributions to local and
one of the fastest-growing sectors (7% in value in 2013) of world trade national innovation systems or the number and type of KIBS firms
(WTO, 2014) and are considered as one of the main engines for future needed in a location to stimulate innovation in the local economies
growth within the European Union (European Commission, 2007: 7). (He & Wong, 2009; Hertog, 2000; Windrum & Tomlinson, 1999) while
“The four main regulated professions (legal, accounting, architectural neglecting the innovation generated at the buying firm level.
and engineering) represent, on average, 5.3% of EU total value added Both research streams provide valuable insights, but these are not
and 10% of EU market services value added” (Canton, Ciriaci, & Solera, fully integrated with literature on KIBS purchase and, thus, cannot
2014, p. 13). KIBS services globally generate annual sales in excess of completely explain KIBS purchasing effects for buying firms, especially
$3 trillion, they represent 7 to 8% of total service sector revenue in ad- in terms of innovation. Table 1 highlights this research gap showing
vanced economies and about 3% of all revenue globally (McKinsey the similarities between these three research streams (KIBS purchase,
Global Institute, 2012). innovation purchase and KIBS in innovation systems) and pointing out
Purchasing KIBS is becoming an activity increasingly common in unexplored issues.
companies. This is in line with the general outsourcing trend according We therefore decided to explore the missing link between purchas-
to which the value that stems from the supply chain counts approxi- ing KIBS and the consequent effects at the buying firm, specifically
mately 80% in many industries with an outsourcing ratio for companies focusing on the innovation effects. In other terms, in this work we sug-
which often overcomes 90% (Johnsen, Howard, & Miemczyk, 2014). As a gest that knowing how to effectively organize processes of purchasing
consequence, there is a growing body of literature on purchasing KIBS. KIBS can increase innovation returns for the buying firm. Gaining such
Research in this field has highlighted the peculiarities and specific overall understanding is even more relevant if it is considered that pur-
challenges characterizing the purchasing of such services. Purchasing chasing KIBS is central to contemporary economy.
KIBS, it has been argued, involves a variety of risks due to the cre- In order to achieve that, we integrate the results of a systematic
dence/experience nature of KIBS (Day & Barksdale, 1994; Geisler & literature review on purchasing KIBS with literatures respectively
Hoang, 1992; Wittreich, 1966). Moreover, the relevance of the relational on purchasing innovation and KIBS roles in innovation systems.
rather than transactional aspects in purchasing KIBS has been highlight- Through the extensive study and integration of the literatures exam-
ed (Sonmez & Moorhouse, 2010) with a lot of attention devoted to the ined, we aimed to answer two research questions: RQ1: What as-
controversial role of the purchasing function in processes of purchasing pects of the KIBS purchasing process can influence the innovation
KIBS (O'Mahoney, Heusinkveld, & Wright, 2013; Sieweke, Birkner, & generated with the acquisition? RQ2: How should buying firms con-
Mohe, 2012; Werr & Pemer, 2007). sider these aspects of the KIBS purchasing process to improve their
However, studies on KIBS purchase remain mainly anchored to the innovation returns? We conducted our systematic literature review
exploration of the characteristics of the purchasing process (i.e. risks, re- considering combinations of the three topics, i.e. KIBS, purchasing
lations and involved actors) with scarce attention to its effects for the and innovation. Knowledge obtained has led to the conceptualiza-
buying firm and the relation between the purchasing processes adopted tion of a framework, which shows factors that need to be considered
and related effects. In this vein, little reference has also been made to the during the KIBS purchase to generate innovation.
impacts of purchasing KIBS on the development of innovation for the The contribution of this research is fourfold. First, we add to the cur-
buying organization. This seems problematic since buying firms, as rent knowledge on purchasing KIBS by shifting attention also to the ef-
discussed, are increasingly interested in and dependent upon KIBS capa- fects of the KIBS purchasing processes and by exploring the relation
bilities and the innovation these capabilities can foster. The lack of focus between KIBS purchasing processes and related effects on innovation
on the effects of purchasing KIBS also contrasts with the recognition of at the buying firm. Second, we raise evidence on the importance of
the strategic role of the purchasing function for the company and there- the relationship between KIBS providers, KIBS users and the purchasing
fore with its contribution to firm's competitiveness and performance function, i.e. the KIBS triad, to favour innovation outputs at the buying
(Johnsen et al., 2014). Therefore, it seems that research on the purchase firm when KIBS are purchased. Third, we contribute to the debate on
of KIBS has been neglecting important trends and missing out on the op- the integration of the purchasing department into KIBS sourcing and
portunity to guide companies on how they can effectively purchase KIBS reconcile extant contrasting positions by providing a set of conditions
in order to foster their innovation gains. that reduce a negative cost-driven purchasing orientation and let a
Two different bodies of literature can be of help in this sense. On the more strategic and value-adding orientation prevail. Finally, this re-
one hand, literature on innovation purchase, which involves studies on search provides insights for practitioners to use their purchasing re-
supplier and customer involvement in new product and service devel- sources to innovate and identifies a series of research opportunities
opment projects (e.g. Stanko & Bonner, 2013; Tsai, Joe, Ding, & Lin, for developing future works.
2013) and the public procurement of innovation (e.g. Hommen & This paper is organized as follows: next section explains the research
Rolfstam, 2009; Uyarra & Flanagan, 2010), shows that the way purchas- process and method adopted to achieve our research objectives and to
ing processes are organized can have different impacts on innovation answer our research questions. Then, the outcomes of the literature
generated in the buying firm. These studies, nevertheless, do not focus analysis are presented and are followed by the presentation of the the-
on the KIBS purchasing context. On the other hand, the KIBS literature oretical framework and a discussion on its main implications for prac-
explores the crucial role of KIBS in fostering innovation. However, this tice and future research. The final section concludes summing up the
second stream of literature is usually concerned with economic aspects, main contributions and limitations of this research.
Table 1
The research gap identified.
Streams of literature Object of purchasing examined Focus on characteristics of Analysis of effects Relation between purchasing
the purchasing processes processes and innovation
New product Public KIBS On system On innovation at
effects explored
development procurement of innovation the buying firm
projects innovation
2. Research process and method the main topics in focus, i.e. KIBS, purchasing and innovation. These
terms were the following: “Innovation”, “KIBS”, “Professional Services”,
2.1. Research process “Solution”, “Business Services”, “Purchasing”, “Procurement”, “Sourc-
ing” and “Buying”. Then, we conducted three sets of searches using
This research summarizes and integrates extant literatures as a way combinations of these words, as listed below:
to develop a conceptual contribution and provide a comprehensive
framework, which delineates contingencies and characteristics in the • “KIBS” OR “Professional Services” OR “Solution” OR “Business Ser-
process of purchasing KIBS that can contribute to innovation outcomes vices” AND “Purchasing” OR “Procurement” OR “Sourcing” OR “Buy-
in the buying firm (for a typology of conceptual contributions in mar- ing”
keting studies see MacInnis, 2011). As depicted in Fig. 1, the research • “KIBS” OR “Professional Services” OR “Solution” OR “Business Ser-
process that we adopted followed three main stages. Stage 1 consisted vices” AND “Innovation”
in the systematic review of literatures concerning “purchasing contribu- • “Purchasing” OR “Procurement” OR “Sourcing” OR “Buying” AND
tion to innovation” and “KIBS contribution to innovation”. This first step “Innovation”
allowed to identify a list of themes, which served as categories to ana-
lyse and interpret literature on “purchasing KIBS” studied in the next
phase. Stage 2, indeed, consisted in the systematic review of literature The searches were limited to full-texts in English, but no time frame
specifically focusing on “purchasing KIBS” and the use of qualitative restrictions were applied. Based on the results of these initial searches,
content analysis to delineate the main issues concerning the purchase we decided to do a final search combining the words “Customer”, “Sup-
of KIBS and to identify aspects of the KIBS purchasing process that can plier”, “Buyer”, “Seller” with “Innovation”. During the searches, the ab-
have an impact on innovation in the buying firm (RQ1). Finally, Stage stracts of the papers were carefully read and only papers relating to
3 consisted in the integration of the main insights obtained from Stage KIBS and purchasing, KIBS and innovation, and innovation and purchas-
1 and Stage 2 in order to provide definite answer to our two research ing were selected. The process described lead to the selection of 228
questions. papers.
The literature integration pursued in the third phase, consisted Each author then read a sample of 10 papers and used information
mainly in “accommodating extant knowledge” (MacInnis, 2011, on their unit of analysis, objectives and core contribution in order to
p. 138) on how KIBS and purchasing processes, separately, can contrib- classify the papers in three sub-groups. The sub-groups were 1) the
ute to innovation in the specific context of purchasing KIBS and “amal- role of KIBS in innovation; 2) the role of purchasing in innovation; and
gamating” insights emerged from our literatures review that offer an 3) the purchasing of KIBS. When it was not possible to classify the
answer to our research questions. Novel insights were summed up paper just based on the abstract, the introduction and the methodology
into a conceptual framework (Fig. 2). sections were also considered to classify the paper. If the paper did not
fit into one of these three groups it was excluded from the analysis. Pa-
2.2. Research method pers with no impact factor and ranked 2 or less in the ABS rank were
also excluded. After this screening process, 86 papers remained in the
The systematic literature review and qualitative content analysis sample to be analysed. The first group on the role of KIBS in innovation
methods were used in our research process. The former method was included 8 papers, the second group on the role of purchasing in innova-
employed to collect texts published on the purchase of KIBS and innova- tion included 24 papers, and the third group included 54 papers.
tion in an extensive and systematic way (c.f. Tranfield, Denyer, & Smart, We then entered in the first stage of our research process and the pa-
2003; Wolf, 2008). We searched for texts in five widely used databases: pers on the role of KIBS in innovation and on the role of purchasing in
EBSCO, Emerald, JSTOR, Proquest and Science Direct. In order to obtain innovation were reviewed with the objective of identifying important
texts relevant to this research, we first defined the words related to topics related to the relationship between “KIBS and innovation” and
between “purchasing and innovation”. This analysis and a brainstorm- 3.1. Purchasing and its role in innovation
ing between the researchers led to the selection of 13 themes consid-
ered important to answer the research questions. Table 2 presents Purchasing has evolved from a clerical and cost-oriented function
these themes; the first nine themes listed in the table came from the into a critical and strategic priority for companies (Ellram & Carr,
two streams of research reviewed and later four were added by the re- 1994). The potential contribution of purchasing to innovation has
searchers based on classifications of innovation in management studies. been identified since the earliest acknowledgments of its strategic
Then, in the second stage of the research process, we used these role: occupying a boundary-spanning position, purchasing gains visibil-
themes as categories of a qualitative content analysis used to systemat- ity over the business environment, acquires knowledge about cost,
ically analyse the 54 papers included in the third group, which covered availability and reliability of new potential technologies and suppliers
at least some aspect of the KIBS purchase. Qualitative content analy- in the market, and redistributes these information across different func-
sis involves the codification of textual material and the qualitative tions in the buying company (Burt & Soukup, 1985; Mogee & Bean,
interpretation of the categories created (Abbasi & Nilsson, 2012) 1976; Williams & Smith, 1990).
and was used to identify whether this literature could reveal how The shift towards the open innovation paradigm has drawn further
the purchase of KIBS can support innovation. Each author analysed attention to the role of purchasing in innovation (Chesbrough, 2003).
half of the papers in the sample. However, throughout the classifica- Indeed, within an environment characterised by open innovation, com-
tion and analysis process, the two authors exchanged their classifica- panies move out of a model where technologies and competencies are
tions in order to compare their results and solve eventual doubts. developed internally in protected laboratories, and decide to obtain
Finally, we used the analysis grid to compare the papers across the them from a network of collaborating partners. Since suppliers are re-
different categories of analysis and make sense of content of the 54 framed as critical sources for innovation, the role of purchasers changed
papers. to one in which selecting and managing the relations with suppliers is
During the second stage, we identified that only eight papers out of crucial.
54 covered aspects related to how the purchase of KIBS can lead to inno- The involvement in new product development (NPD) project is the
vation. Most of the papers were mainly concerned with the purchase of only context in which literature considers purchasers' contributions to
KIBS. Furthermore, few themes covered in the literature on KIBS in inno- innovation (to our knowledge the only exception is the work of
vation and on the role of purchasing in innovation were explored in the Wynstra, Weggeman, & Van Weele, 2003 – see Table 3). In this context,
KIBS purchasing literature. They were the involvement of the purchas- the integration of purchasing in the NPD team has proved to have pos-
ing function in the KIBS purchase and the orientation and maturity of itive effects on the success of the innovation (Luzzini, Amann, Caniato,
the purchasing department. Other topics on the purchase of KIBS - like Essig, & Ronchi, 2015; McGinnis & Vallopra, 1999, 2001; Mendez &
the selection of KIBS, factors that affect the involvement of purchasing, Pearson, 1994; Nijssen, Biemans, & De Kort, 2002; Tracey, 2004). More-
and the need for integration between the parties involved in the KIBS over, when suppliers need to be involved at an early stage in NPD pro-
purchase - however emerged from the analysis of the paper and were jects, an early purchasing involvement (EPI) is also needed (Dröge,
further explored. Jayaram, & Vickery, 2004; Lakemond, van Echtelt, & Wynstra, 2001;
Given this context, in the third stage, we used logical reasoning and McGinnis & Vallopra, 1999; Wynstra, Van Weele, & Axelsson, 2000).
the knowledge acquired in the previous phases of the research to devise Areas of purchasing contribution to NPD have been distinguished
a framework on how KIBS purchase can lead to innovation at the buying into operational and strategic aspects. This distinction reflects the way
firm. The topics listed in the framework came from the integration of the purchasing function itself is organized in most innovative firms
themes identified in first and second research phases. where a ‘life-cycle sourcing’ team exists along with an ‘advanced sourc-
ing’ team (Schiele, 2010). The ‘life-cycle sourcing’ team usually consists
of purchasers with a strong commercial focus and specialists in a partic-
3. Stage 1: purchasing and KIBS contribution to innovation ular commodity; integrated into all NPD projects, this team intervenes
in the production phase managing relations with suppliers. On the
In this section, we provide an overview of the role that purchasing other hand, the ‘advanced sourcing’ team is a distinct organizational
and KIBS, separately, play in innovation. unit composed of engineers or purchasers who have developed a strong
Table 2
Analysis grid: categories used to analyse the sample of 54 papers on KIBS purchase.
Themes Definition
technical background over time; this team then focuses on developing based measures of purchasing integration value (e.g. reducing product
relationships with new rather than extant suppliers. and development costs, reducing development time, and increasing
Among the purchasing contribution to operational aspects of NPD, product quality) to a tool that allows identifying ex-ante the required
the interfacing role has been particularly spotlighted, since this facili- level of purchasing integration according to its potential contribution
tates the buyer-supplier relationship that is of pivotal importance for to the process.
the exchange of knowledge and the development of innovation Public procurement represents another stream of research where in-
(Luzzini et al., 2015; Nijssen et al., 2002). Also, overall operation project creased interest on the purchasing contribution to innovation has re-
assistance has been cited among other purchasing contributions cently developed (see Table 4). “Public procurement of innovation” is
(Nijssen et al., 2002). the term currently used in this stream of literature to identify “purchas-
The effectiveness of purchasing across these contributions depends ing activities carried out by public agencies that lead to innovation”
on aspects of the purchasing function maturity, such as its knowledge (Rolfstam, 2012, p. 303).
(i.e. knowledge of the external supplier environment, of the internal While in business purchasing literature the focus is mainly on the ef-
customer's environment, and of the firm's strategic goals) and skills fects that purchasing involvement generates on innovation and
(i.e. analytical, communication, and general management skills), the re- especially NPD for buyers, in the public procurement literature the
sources available to purchasing, and the integration of purchasing with focus is on the purchasing of innovations from the market and its effects
other functions inside the firm (Castaldi, Ten Kate, & Den Braber, 2011; on innovation for the industry and networks. Based on earlier studies il-
Luzzini et al., 2015). Moreover, it has been pinpointed that in contexts of lustrating that the state often acts as a lead user in stimulating innova-
technological uncertainty and immaturity of the industry, suppliers' in- tion (Dalpé, DeBresson, & Xiaoping, 1992), the central idea is that
volvement in NPD is less appropriate and the relevance of extant long- demand from public organizations can be used as an engine for the de-
term suppliers' relationships decreases (Johnsen, 2009; Johnsen, velopment and diffusion of innovations, even if the primary objective is
Phillips, Caldwell, & Lewis, 2006), therefore, in these situations also not to enhance the development of new products, but to target func-
the relevance of the purchasing role in NPD diminishes. tions that satisfy human needs or solve societal problems (Edquist &
Wynstra et al. (2003), provide a comprehensive classification of the Zabala-Iturriagagoitia, 2012). Drawing on previous relevant literature
purchasing's roles in NPD identified in literature. The rationalization on the theme (Edler, 2009; Hommen & Rolfstam, 2009; Uyarra &
role allows the firm to get competitive advantage minimizing total Flanagan, 2010), Edquist and Zabala-Iturriagagoitia (2012) propose a
costs of production; the structuring role concerns purchasing influence taxonomy to classify innovation procurement based on two dimen-
over the structure of the supplier network, for instance balancing in sions: (1) the user of the resulting product and (2) the character of
terms of dependence on suppliers and inclusion of newly established the innovation. According to the first dimension innovation procure-
suppliers along with old ones; the development role relates to the tech- ment is direct when the procuring organization is also the end user
nological alignment between the firm and the supplier network, so to or catalytic when the procuring agency acts as a “buyer” for the ben-
favour exploitation of suppliers' technical competencies and generate efit of a third end-user. According to the second dimension, three
suppliers' interest in developing products corresponding to firm's inter- types of innovation procurement are identified: pre-commercial,
nal needs. when (expected) research results are procured and no product is in-
Moreover, Wynstra et al. (2003) have the merit of proposing to shift volved in the purchasing (it may however involve the development
from a short-term NPD project perspective to a long-term and strategic of a product prototype); adaptive, when the product or system pro-
NPD process view, elaborating a framework that broadens the palette of cured is new only to the geographical area of procurement, so that
purchasing contributions in product development. Far from being limit- innovation concerns incremental adaptation to the specific local
ed to managing supplier involvement in single development projects, conditions; developmental, when completely new to the world
the model encompasses various purchasing key processes, activities products or systems are created as a result of the procurement
and areas of integration. The framework moves from ex-post project- process.
Table 3
Main themes discussed in literature on the role of purchasing in innovation (business companies).
Context of analysis of purchasing Purchasing involvement in Papers focus on different aspects related to the involvement All studies analysed, the only exception is
contribution to Innovation new product development of purchasing in NPD projects the work of Wynstra et al. (2003).
(NPD) projects.
Effects Positive effects on the success Positive effect associated with the involvement of the Luzzini et al. (2015), McGinnis and
of the buyers' innovation. purchasing function in NPD projects Vallopra (1999, 2001), Mendez and
Pearson (1994), Nijssen et al. (2002),
Tracey (2004).
Types of contribution Role of the purchasing Contribution to operational aspects of NPD, e.g. the Luzzini et al. (2015), Nijssen et al. (2002),
function interfacing role; the overall operation project assistance. Wynstra et al. (2003).
Orientation of the purchasing Short-term orientation to contribute to the NPD project with Schiele (2010), Wynstra et al. (2003).
function a more commercial focus vs. long-term orientation aimed at
developing relationships and purchasing strategies to support
innovation
Moderators of contribution Maturity of purchasing Knowledge of the external supplier environment, of the Castaldi et al. (2011), Johnsen et al.
function internal customer's environment, and of the firm's strategic (2006), Johnsen (2009), Luzzini et al.
goals; analytical, communication, and general management (2015).
skills; the resources available to purchasing; the integration
of purchasing with other functions inside the firm.
Maturity of the industry and Suppliers' involvement in NPD is less appropriate and the
technological uncertainty relevance of extant long-term suppliers' relationships
decreases therefore also the relevance of the purchasing role
in NPD diminishes.
S. D'Antone, J.B. Santos / Industrial Marketing Management 58 (2016) 172–186 177
3.2. Knowledge intensive business services and their role in innovation 2000; Muller & Zenker, 2001). This happens because of the nature of
(systems) the delivery process of KIBS firms. In order to define and implement so-
lutions, KIBS providers use their existing knowledge bases. However, in
Knowledge-intensive business services (KIBS), it has been argued, many cases, they have to acquire new knowledge that is not owned by
play a vital role in regional and national innovation systems (Hertog, the firm or its employees (Muller & Zenker, 2001). Providers may learn
2000; Miles et al., 1995 – see Table 5), due to their intrinsic characteris- new methods and processes (Nachum, 1999) and/or hire individuals
tics. KIBS are offerings that have knowledge as the main input and are with knowledge on a new area. During the service delivery, KIBS pro-
supplied to business markets (Muller & Doloreux, 2009). In these ser- viders use their “new” and existent knowledge bases to solve the prob-
vices, customers come to KIBS providers because they have a specific lem of the customer and, though the interaction between customers
need for which there is no available offering in the market. KIBS em- and providers, knowledge is partially transferred to customers (Muller
ployees then use their knowledge to diagnose customers' problems & Zenker, 2001). Such knowledge can then lead to future innovation ef-
and needs, design solutions (Mills & Moshavi, 1999) and, if the case, im- forts within the customer business.
plement them (Bettencourt, Ostrom, Brown, & Roundtree, 2002). In this Given KIBS firms abilities to combine and adapt knowledge bases to
sense, KIBS customers do not buy products or services, but solutions produce solutions to customers´ problems, these service providers reuse
composed of a plan of how to address customers´ needs (Hertog, ideas, skills and tools developed in one sector or company to serve other
2000) and of the customized products and services needed to imple- sectors and/or companies. The transference of knowledge between cus-
ment it. tomers and KIBS providers then enables knowledge to spill over across
As such, KIBS can be sources of innovation for their customers, as firms, economic sectors and even countries (Windrum & Tomlinson,
they can support them in their innovation efforts, by helping out with 1999). For this reason, KIBS are considered carriers of innovation across
the introduction of new products, services and technologies or with companies, sectors and countries (Hertog, 2000; Miles et al., 1995).
the implementation of new organizational models. KIBS firms can also The ability of KIBS providers to foster innovation in regional and na-
use their knowledge and experience to co-create an original solution to- tional innovation systems, however, seems to depend on certain condi-
gether with the customer (Gadrey & Gallouj, 1998). For example, a pro- tions. KIBS firms differ in relation to how they use and develop
vider of solutions for call centres designs and implements a bespoke call knowledge and technologies. Professional KIBS, or professional services,
centre operation for the customer (Hertog, 2000) or a consulting com- are KIBS delivered by professionals (Miles et al., 1995). These services
pany develops and implements, together with a food retailer, the e- are provided by individuals that own very specific knowledge bases,
commerce side of the business. e.g. legal doctrines and principles follow specific codes of conduct and
KIBS can also have a more indirect role in promoting innovation in ethics and are accredited and regulated by the relevant authorities
their customers, acting as facilitators of innovation efforts. For instance, (Løwendahl, Revang, & Fosstenløkken, 2001). These KIBS providers
KIBS can help customers get access to new sources of information and are considered users of existing knowledge, as they rely on existing
develop capabilities that are relevant for the development of new prod- systems and technologies to deliver their solutions or propose
ucts, services and organizational processes. Lau and Lo (2015) identified diagnosis (Miles et al., 1995). Technology-based KIBS (t-KIBS), like
that business units buying KIBS have more interaction with other engineering, R&D and bespoke software development, on the other
branches, their headquarters and third parties (e.g. customers) to ac- hand, use their knowledge to create new ideas and develop technol-
quire new knowledge. Yam, Lo, Tang, and Lau (2011) also showed ogy of various kinds (Miles et al., 1995). As such, t-KIBS provider can,
that the use of KIBS stimulates buying companies to use technical re- or should, play a more active role in developing and carrying
ports, patent databases, and scientific publications as additional sources innovation.
of information and knowledge. Still according to these authors, KIBS In addition, Doloreux and Shearmur (2013) show that, although the
firms help their customers develop the capability to allocate human re- use of KIBS can lead to more fruitful innovation outcomes, the type of
sources and money efficiently to innovation activities, which in turn im- KIBS and the extent to which customers use KIBS plays an important
proves the sales performance of technological innovations. role in determining these outcomes. Furthermore, KIBS firms depend
Furthermore, KIBS can be sources of key innovation inputs for cus- considerably on their geographical proximity with customers to deliver
tomers, i.e. new knowledge and ideas (He & Wong, 2009; Hertog, good quality services and to get established in the market (Koch &
Table 4
Main themes discussed in literature on the role of purchasing in innovation (public procurement).
Effects Positive effects on the innovation Positive effect associated with public demand for new Dalpé et al. (1992), Edler (2009), Edquist and
for the industry and networks. products, services and technologies Zabala-Iturriagagoitia (2012), Hommen and
Rolfstam (2009), Uyarra and Flanagan (2010)
Types of contribution Public procurement as a source of The state demand stimulates the development and Edler (2009), Edquist and
innovation diffusion of innovation even when the primary objective is Zabala-Iturriagagoitia (2012), Hommen and
not to develop innovation rather to satisfy human needs Rolfstam (2009), Uyarra and Flanagan (2010)
and solve social problems.
Classification of procurement Depending on the user of the Direct when the procuring organization is also the end user Edquist and Zabala-Iturriagagoitia (2012)
innovation resulting product Catalytic when the procuring agency acts as a “buyer” for
the benefit of a third end-user.
Depending on the character of the Pre-commercial, when (expected) research results are
innovation procured and no product is involved in the purchasing (it
may however involve the development of a product
prototype);
Adaptive, when the product or system procured is new
only to the geographical area of procurement, so that
innovation concerns incremental adaptation to the specific
local conditions;
Developmental, when completely new to the world
products or systems are created as a result of the
procurement process.
178 S. D'Antone, J.B. Santos / Industrial Marketing Management 58 (2016) 172–186
Table 5
Main themes discussed in literature on the role of KIBS in innovation (systems).
Effects Positive in regional and Positive effect associated with the types of contribution Hertog (2000), Miles et al. (1995)
national innovation systems
Types of contribution KIBS as sources of innovation When KIBS support customers in their innovation efforts, Gadrey and Gallouj (1998), He and Wong
customers and providers combine their knowledge and (2009), Hertog (2000), Muller and Zenker
experience to create an original solution. (2001)
KIBS as facilitators of KIBS stimulate access to new sources of information (e.g. new He and Wong (2009), Hertog (2000), Lau and Lo
innovation branches or documents) (2015), Muller and Zenker (2001), Yam et al.
KIBS as sources of new knowledge and ideas for customers (in (2011)
relation to the nature of the delivery process).
KIBS develop capabilities (e.g. develop the capability to allocate
resources efficiently to innovation activities, which in turn
improves the sales performance of technological innovations).
KIBS as carriers of innovation Knowledge and solutions are adapted from one Hertog (2000), Miles et al. (1995), Windrum
sector/company to another, generating new ideas and Tomlinson (1999)
Moderators of contribution Type of KIBS t-KIBS (technology-based KIBS): KIBS that create technical Miles et al. (1995)
knowledge of various
p-KIBS (professional KIBS): KIBS delivered by professionals.
Interaction Though the interaction between customers and providers, Huggins (2011), Muller and Zenker (2001)
knowledge, ideas, skills are partially transferred between the
parties, so interaction is vital
Extent of use The extent to which customers hire KIBS to support their Doloreux and Shearmur (2013)
operational activities
Geographical proximity co-location with customers enables face-to-face interaction Huggins (2011), Koch and Stahlecker (2006)
and facilitates knowledge transfer
Stahlecker, 2006), as co-location with customers enables face-to-face valuable strategies to reduce risk perceptions (Mitchell, 1998b). Great
interaction and facilitates knowledge transfer (Huggins, 2011). attention has been also given to the criteria used to select KIBS pro-
viders, in order to ensure an effective purchasing. The relevant criteria
4. Stage 2: aspects and contribution of purchasing KIBS to innovation identified are related to price/competitive fees, project management
competence/quality of service provided, suppliers' industry knowledge
In the two streams of literature analysed there is evidence that both, and variety of services offered, prior experience with the supplier, and
purchasing and KIBS can contribute to innovation. Both streams of re- reputation/image of the supplier (Scott & Van der Walt, 1995;
search, however, do not consider how the buying organization should Supphellen & Gronhaug, 2003). Many contingency factors influence
behave during the KIBS purchase or the extent to which the purchasing the employment of the one or the other criterion in the selection
function should get involved in the KIBS purchase in order to increase phase: buyers' risk propensity (Mitchell, 1998a), the strategic relevance
innovation outcomes. We therefore explored the specific literature on and complexity of the service bought (Devlin, 1998; Fitzsimmons, Noh,
purchasing KIBS expecting to find more detailed insights on this matter. & Thies, 1998), the frequency of the purchasing (Dawes, Dowling, &
The results of the qualitative content analysis, however, showed that Patterson, 1992; Sharma, 1994).
most of the papers limit their focus to the KIBS purchasing process, In these studies, clear selection criteria not only have the role of
more specifically the KIBS selection and the involvement of the purchas- guiding buyers in decision making, but they also have the function of
ing function in the KIBS purchase, and dedicates little attention to inno- informing suppliers in order to get commercial efficiency, that is
vation. Next, we describe the main aspects covered in the KIBS purchase stabilising requirements to avoid inaccuracies in specifications and
literature. communication problems (Peña-Siles, del Mar González-Zamora, &
Machuca, 2012). Overall, formalising the purchasing processes is
4.1. KIBS selection highlighted as crucial and can be executed by either the establishment
of purchasing policies or agreements with preferred suppliers. The oppor-
Due to the credence/experience nature of KIBS services, most of the tunity of employing the first or the latter depends on the company size,
literature mainly focuses on the risks and transactional costs linked to repetition of the purchasing in time, as well as on cultural dimensions
their purchasing and, therefore, identifies in the establishment of formal such as uncertainty avoidance and masculinity–femininity (Pemer,
and simple purchasing selection procedures a way for reducing uncer- Sieweke, Werr, Birkner, & Mohe, 2014; Pemer, Werr, & Bianchi, 2014).
tainties and limiting these risks and costs (Day & Barksdale, 1994; Despite the formalising efforts which attempt to include objective
Geisler & Hoang, 1992; Wittreich, 1966). The decision making process criteria, soft, affective, and relational criteria also emerge as highly dis-
identified in literature, which has been mainly studied in the context criminant as in the case of “personal chemistry”, trust, and commitment
of t-KIBS, is concerned with the definition of the needs of internal cli- with the supplier (Day & Barksdale, 2003; Fitzsimmons et al., 1998;
ents, the decisions concerning the selection of technology, and the deci- Garry, 2008; Lian & Laing, 2007). These soft aspects seem to be more rel-
sions concerning the selection of suppliers (Geisler & Hoang, 1992). evant especially when an innovation goal is involved. However, given
However, most of the literature has specifically focused on this latter the limited focus on the KIBS selection phase, little is said in this litera-
point. ture about the subsequent phases of relationship development and,
Wide attention to the reduction of risks in the selection phase has therefore, few implications for innovation are provided.
been devoted by Mitchell (1995) who specifically studies public pro-
curement of planning consulting services and identifies three main 4.2. Purchasing function involvement and its role
types of risks associated to the purchasing of these services, namely,
time, financial, and psycho-social. The author also reveals that risk per- First, purchasing in itself is identified as one of the many possible
ception is higher in pre-purchase phase/new supplier condition and strategies to access external knowledge, alternative to cooperation or
that, therefore, information provided by suppliers, checklists to help external information acquisition (Kang & Kang, 2014; Vega-Jurado,
evaluations and also suppliers' physical proximity might represent Gutiérrez-Gracia, & Fernández-de-Lucio, 2009; Viljamaa, 2011). The
S. D'Antone, J.B. Santos / Industrial Marketing Management 58 (2016) 172–186 179
literature strongly pinpoints that when companies buy KIBS, this often same time this can explain the complexity of the service delivery due
excludes any involvement of the purchasing department or of purchas- to the fact that the service provider has two “principals” who generally
ing professionals inside the buying firm (Sonmez & Moorhouse, 2010). pursue different goals.
In the case of KIBS purchasing, indeed, the final users, who are managers Adopting the same interaction-based perspective, a limited group of
from other departments than the purchasing one, directly establish a re- studies have shifted focus from the sole initial selection phase to the
lationship with external professionals and engage in the purchasing production/consumption of business services, which also include KIBS
process (Fitzsimmons et al., 1998; O'Mahoney et al., 2013; Sieweke (Van der Valk, Wynstra, & Axelsson, 2008; Van der Valk, Wynstra, &
et al., 2012; Werr & Pemer, 2007). Despite the attention given to the in- Axelsson, 2009; Wynstra, Axelsson, & Van der Valk, 2006). These studies
volvement of the purchasing department in buying KIBS (Bäcklund & propose that buyer-supplier interaction patterns are different depend-
Werr, 2005; Freedman & Stinson, 2004; Mohe, 2005; Werr & Pemer, ing on the type of usage that it is made of the business service. These
2007), still conflicting positions exist concerning the benefits of this studies propose that interaction patterns can be described in terms of
inclusion. key objectives, buyer and supplier capabilities, buyer and supplier rep-
On one hand, some authors stress that, due to different works of for- resentatives involved, and communication (Van der Valk et al., 2009).
malization, the involvement of purchasing professionals commodifies According to these models, purchasers should be involved in buyer-
management knowledge and limits the exchange value of that knowl- supplier interaction patterns involving component and consumption
edge, interfering with the external professional-manager relation services, the first being services that are transferred to customers of
(O'Mahoney et al., 2013). It is noticed, for instance, that the maturity the customer without any intervention and the latter consisting of a
of the consulting service makes the service itself more easily understood large variety of items including less expensive and more routine-like
by purchasers and managers: this facilitates the cooperation between services. This would imply that if KIBS purchasing correspond to one
them, but can increase the political usage of management consulting of these two usages, the inclusion of professional purchasers also into
by managers, who resist to formalized purchasing procedures. These the buyer-seller relationship should be considered.
tensions would not depend on the type of consulting service rather on
the client-consultant relation (Werr & Pemer, 2007). 4.3. Effects on innovation
On the other hand, other authors (Sieweke et al., 2012) have found
that the centralisation of the purchasing process reduces transaction Only a small share of the papers reviewed explores the relationship
costs without affecting, contrary to the critics, the selection criteria, between KIBS purchase and innovation. Among the 54 papers analysed,
which still are based also on relational aspects. The role that the purchas- only eight cover some aspect related to how purchasing can contribute
ing department should assume in this context (Sieweke et al., 2012; West, to the generation of innovation. Five papers contend that, in general, the
1997) only resides in facilitating the selection phase and reducing trans- purchase of KIBS can lead to product innovation for the buying organi-
action costs, with effects on efficiency rather than effectiveness of the ser- zation (Kadefors, Björlingson, & Karlsson, 2007; Linder, Jarvenpaa, &
vice bought (i.e. respectively advertising and management consulting). Davenport, 2003; Love, Gunasekaran, & Li, 1998; Töllner, Blut, &
Managers still have to keep the control over the purchasing process Holzmüller, 2011; West, 1997). Kadefors et al. (2007) also propose
(Sieweke et al., 2012) and purchasing intervenes only when the external that the purchase of KIBS can increase the buying firm's overall willing-
professional-internal manager relation is not too strong (West, 1997). ness to change and implement new organizational routines. Concerning
Werr and Pemer (2007), who have studied barriers and enablers of the purchasing process, the main insight provided is that collaborative
purchasing involvement in purchasing of consultancy services, have attitudes and purchasing practices between customers and KIBS firms
identified three possible levels of involvement: decentralised, coordi- are required to stimulate innovation; such collaborative practices
nated decentralisation, and purchasing coordination. Decentralisation enable the parties to establish a clearer focus during the development
is the lowest level of involvement and consists of an occasional and effort, create means for both parties to share their competences, and
transactional oriented intervention on the management initiative. Coordi- promote the selection of providers based on their attitudes and team-
nated decentralisation corresponds to the role assigned to purchasing by work potential rather than on past performance and reputation
the other authors cited earlier (Sieweke et al., 2012; West, 1997), and (Eriksson & Westerberg, 2011; Kadefors et al., 2007).
consists in achieving convenient commercial agreements and facilitating None of the papers explores or observes that the purchase of KIBS
the purchasing process offering procedures and templates to support can benefit KIBS providers too or other partners in the network. All
managers. Finally, purchasing coordination implies a centralisation of these papers consider customers purchasing technology based KIBS (t-
the purchasing process with purchasers highly expert in the domain, in- KIBS), corroborating the proposition of Miles et al. (1995) that t-KIBS
ternally integrated and with high managerial capabilities. Actively in- have the potential to generate innovation, while p-KIBS tend to support
volved in all the purchasing steps, they do not establish a lot of the adoption of innovation. In addition, even when considering how to
procedures and templates and do not focus on the commercial aspect; boost innovation, the literature limits the role of the purchasing func-
rather their aim is to identify potential value creation. The authors identify tion to the management of activities related to the project, i.e. selecting
several factors influencing the purchasing involvement such as top man- KIBS suppliers, negotiating with them, evaluating their performance
agement commitment, status of the purchasing function, managerial use and supervising the project (Kadefors et al., 2007; Love et al., 1998;
of and attitude towards consultants, framing of management consulting West, 1997). West (1997) and Töllner et al. (2011) complement, re-
and of purchasing situation (e.g. as a regular purchase or a competence spectively, that having purchasing top managers and buying centres in-
acquisition requiring HR involvement), implementation strategy (e.g. in- volved in certain projects can be fruitful, as they will have more
ternal rules for compliance; control and follow-up systems), and persis- autonomy to make decision when it comes to more complex purchases.
tence by the purchasing function. Similar procurement involvement The work of Linder et al. (2003) is the only one to propose that purchas-
models are also depicted in the context of public procurement of profes- ing could have a more strategic role. Although not specifically attribut-
sional services (Schiele, 2005; Schiele & McCue, 2006). ing this activity to the purchasing function, these authors claim that
In line with the necessity of a progressive inclusion of purchasing in companies should have a function dedicated to establishing processes
buying KIBS, some scholars (Sieweke et al., 2012) propose that future and templates to buy innovation, to define and create a fruitful cultural
studies should look at the service triad, involving purchasing profes- environment to source innovation, and to ensure that information and
sionals, managers, and consultants (see e.g., Choi & Wu, 2009; Van der knowledge flows between the parties involved. This resonates with
Valk & van Iwaarden, 2011). This can explain the purchasers' lack of Werr and Pemer (2007) who, even not referring directly to innovation
control over the service delivery and service quality (mainly in the effects, identify the possibility of a more strategic-coordinating role of
hands of managers), due to their detachment from the service; at the purchasing professionals in buying KIBS. Here is important to consider
180 S. D'Antone, J.B. Santos / Industrial Marketing Management 58 (2016) 172–186
Table 6
Main themes discussed in literature on purchasing KIBS.
KIBS purchase KIBS selection Great attention given to the criteria used to select KIBS providers in Day and Barksdale (2003), Fitzsimmons et al. (1998),
order to ensure an effective purchasing Garry (2008), Lian and Laing (2007), Mitchell (1995,
Soft affective and relational criteria such as “personal chemistry”, 1998b)
trust and commitment with the KIBS providers is considered highly
discriminant
Involvement of purchasing KIBS purchases often exclude the purchasing Fitzsimmons et al. (1998), O'Mahoney et al. (2013),
function department/professionals Sieweke et al. (2012), Van der Valk and van Iwaarden
Formalization introduced by purchasing may commodify (2011), Werr and Pemer (2007)
knowledge, limit its exchange, and interfere with the
provider-manager relation.
Purchasing involvement can reduce transaction costs. This is leading
scholars to defend purchasing involvement
When purchasing is involved, its participation levels can vary.
Service usage Buyer-supplier interactions patterns are different depending on the Van der Valk et al. (2008), Van der Valk et al. (2009),
type of usage of the business service Wynstra et al. (2006)
Purchasers should be involved depending on buyer-supplier
interaction patterns (e.g. in component and consumption services)
Cultural factors The establishment of KIBS purchasing policies or agreements with Pemer, Werr, and Bianchi (2014a), Pemer, Sieweke,
preferred supplier can depend on the company size, repetition of Werr, Birkner, and Mohe (2014b)
the purchase in time, as well as on culture dimensions such as
uncertainty avoidance and masculinity–femininity
Effects on Product/process innovation KIBS purchase can lead to product and process innovation Kadefors et al. (2007), Linder et al. (2003), Love et al.
innovation Little attention dedicated to process innovation (1998), Töllner et al. (2011), West (1997)
Integration Collaborative attitudes and purchasing practices between customers
and KIBS firms are required to stimulate innovation
This enables parties to share their competences and select providers
based on their attitudes and teamwork
Orientation to innovation One paper suggests companies should have a function oriented to
buy innovation
the opposite argument made by O'Mahoney et al. (2013) that purchas- by two circular arrows in Fig. 2. Before the initial interaction between pro-
ing involvement could interfere with the professional-manager relation viders and the buying firm, there is a pre-purchase stage in which the
and, consequently, hamper the ability to generate innovation. buying firm – represented either by the buying function or by the buying
Given the limited knowledge on purchasing KIBS for innovation that function and the purchasing team – decides the scope and cost of what is
we could obtain from Stage 2, we decided to interpret and integrate needed and shortlists suppliers that might be worth contacting.
these insights with those obtained from Stage 1 which had a specific Second, given our research outcomes, we propose that ideally the
focus on the contribution of purchasing and KIBS, respectively, to inno- KIBS service triad, i.e. the KIBS provider, the purchasing function and
vation. Based on this conceptual integration, we elaborated the frame- the function buying the KIBS, should be involved in the entire purchase
work presented in the next section. process and that these parties should interact intensively to boost inno-
vation outcomes. There are moments of the process marked by higher
5. Stage 3: how to purchase KIBS for innovation levels of interaction between the parties, such as when providers and
customers work together to design the solution in the purchasing
This section initially presents the framework developed as an out- stage or when clients engage more actively in testing the solution pro-
come of our research process and then discusses the implications of vided in the delivery phase; other moments are characterised by
the framework for research and practice. The framework, inspired by lower levels of interaction, like when KIBS employees work more inde-
the one proposed by Webster and Wind (1972), aims to represent orga- pendently to create a solution that addresses customers' needs (Lehrer
nizational buying behaviour and explores characteristics of the buying et al., 2012). However, a more intensive involvement of the customer
group and determinants of their interactions. It is, however, focused in the KIBS purchase and interaction between the parties guarantee
on the way companies should buy KIBS to increase their innovation the delivery of an effective solution (Santos & Spring, 2015) and it is pre-
returns and considers only issues relevant to this context. cisely this interaction that creates a fruitful environment for the ex-
change of knowledge and ideas for innovation (Hertog, 2000; Muller
5.1. KIBS purchase and innovation: theoretical framework & Zenker, 2001). It is also important to mention that, in the KIBS
purchase, even before the preferred supplier is selected, buyers can
The framework proposed in Fig. 2 represents the relevant aspects learn from the interaction with the different KIBS providers that
that buying firms need to consider in the purchase of KIBS to boost inno- are presenting their solution proposals and even share knowledge
vation. This framework should be interpreted in the following ways. gained from the interaction with one supplier with other providers.
First, the framework focuses mainly on aspects involved in the KIBS As such, before the contracting stage, different service triads might
purchase. The KIBS purchase starts with the activities that take place be in place.
once the buying firm gets in contact with KIBS providers and the parties Finally, we suggest aspects important to facilitate the interaction and
begin to interact. The process involves activities related to the purchase relationships between the members of the KIBS triad and identify con-
stage, like solution specification, selection of preferred supplier and tingencies that influence the relationships between the members of
contracting as well as the ones involved in the delivery of the solution. the triad, such as the maturity of the purchasing function, buyers' levels
The decisions made during the purchase stage define the actions needed of intra-organizational integration, KIBS usage, maturity of the KIBS sec-
to deliver the solution. However, the KIBS purchase process is iterative tor and cultural factors.
and changes and discoveries made in the delivery can require changes Next we explore the different aspects of the framework in more
in initial specifications (Santos & Spring, 2015), a feature represented detail.
S. D'Antone, J.B. Santos / Industrial Marketing Management 58 (2016) 172–186 181
5.1.1. KIBS service triad configuration strategic role that has been identified as relevant in increasing the con-
One main aspect emerging from Stage 1 of our analysis is that the in- tribution of purchasing to long-term processes of innovation inside the
teractions taking place during the purchasing process have a significant firm while activities of support and formalization, more commercial-
impact on the innovation generated in the buying firm. This is corrobo- oriented, can contribute to short term innovation within the perimeter
rated by literature on KIBS (Huggins, 2011; Muller & Zenker, 2001) as of a specific project (Wynstra et al., 2003).
well as by the different works on purchasing from Wynstra and col- Third, the service triad perspective, which is based on the interaction
leagues (Van der Valk et al., 2008; Van der Valk et al., 2009; Wynstra approach proposed by the IMP group, is a valuable framework to exam-
et al., 2006) who include the interactions taking place during the overall ine issues of innovation (Freytag & Young, 2014) and allows to take a
purchasing process among those which are likely to develop innovation wider perspective on the innovation process, which goes beyond the
at the buying firm. The literature on the involvement and role of the simple transaction (i.e. selection) phase so far favoured in studies on
purchasing function analysed in Stage 2 specifies the boundary of the KIBS purchasing.
relevant interactions and suggests to analyse the KIBS service triad Developing on these considerations we have specifically looked,
which includes the KIBS provider, the purchasing function and the among the studies analysed, at those which draw more specifically on
user function inside the buying firm (Sieweke et al., 2012). the interaction perspective such as Wynstra et al. (2006); Van der Valk
Our framework, therefore, highlights the relevance of putting the et al. (2008) and Van der Valk et al. (2009) who propose different interac-
service triad at the core of any KIBS purchasing aiming to generate inno- tion configurations in the service delivery. Integrating these insights with
vation outputs at the buying firm. The service triad approach is relevant models proposing different levels of purchasing integration in NPD
at least for three main reasons. (Wynstra et al., 2003) and in KIBS purchasing (Werr & Pemer, 2007), it
First, the studies analysed (Bäcklund & Werr, 2005; Freedman & is possible to say that three main aspects define the triad configuration:
Stinson, 2004; Mohe, 2005; Werr & Pemer, 2007) demonstrate that (1) the involvement of different actors in the interaction; (2) the role of
KIBS purchasing increasingly involves the three parts above mentioned. actors in the interaction; and (3) the content exchanged in the interaction.
Indeed, emulating public sector procurement policy and aiming to con- The first aspect is consistent with what is identified in the model of
trol the costs of consultancy and similar services, large companies more Van der Valk et al. (2009) and previous versions as “supplier represen-
and more involve purchasing professionals in buying KIBS (Werr & tatives” and “customer representatives”. In the KIBS service triad config-
Pemer, 2007). uration, these “representatives” may belong to the KIBS supplier, the
Second, while the KIBS provider-user relation has been traditionally function making use of the service bought, and the purchasing function
acknowledged as being critical in the effectiveness of the service deliv- that may have different degrees of involvement in the interaction (c.f.
ery (Santos & Spring, 2015), studies on the involvement of the purchas- Werr & Pemer, 2007).
ing department (Werr & Pemer, 2007) suggest that also this latter can The second aspect relates to the role these actors take in the service
benefit on the service delivery, from simply favouring the effectiveness triad and is consistent with what is identified in the model of Van der
of the interactions involved up to playing a strategic role in identifying Valk et al. (2009) and previous versions as “critical customer capabili-
internal needs and selecting suitable suppliers. It is precisely this ties” and “critical supplier capabilities”. For instance, when the
182 S. D'Antone, J.B. Santos / Industrial Marketing Management 58 (2016) 172–186
purchasing function only plays an ancillary role, it will engage with A third relevant aspect, according to the studies on the role of KIBS in
works based on its contractual, administrative and legal capabilities. innovation systems, is the geographical proximity between the mem-
Differently, when the purchasing function plays a commercial facilitator bers of the KIBS services triad. Koch and Stahlecker (2006) argue that
role, it will rely on mobilizing and prioritizing capabilities to facilitate the KIBS firms depend considerably on their geographical proximity with
selection and reduce transaction costs. Finally, when the purchasing func- customers to deliver good quality services because the proximity en-
tion plays a more strategic role, it may mobilise its informing, formalising, ables face-to-face interaction (Huggins, 2011) and the establishment
coordinating and timing capabilities to participate in the project and ser- of social bonds. This then would further enhance the integration be-
vice management. These different roles will highlight different contribu- tween the KIBS triad members. Therefore, we could expect that, under
tions of the activities involved in purchasing KIBS to the innovation. greater levels of integration and co-location in the service triad, parties
The third aspect, finally, relates to what is named as “communica- can expect to obtain better innovation returns.
tion” in the model of Van der Valk et al. (2009) and concerns the content Finally, the seminal work of Miles et al. (1995) on KIBS proposes that
exchanged in the interaction, which can involve simple information, professional services or p-KIBS are users of technology, while t-KIBS
knowledge or the development of capabilities with different impacts focus on the development and implementation of new technologies.
on innovation. Both the literature on KIBS contribution to innovation As such, t-KIBS would be more likely to promote innovation outcomes,
(Hertog, 2000; Muller & Zenker, 2001) and the one on public procure- because the development of technology usually is more customized
ment contribution to innovation (Edquist & Zabala-Iturriagagoitia, and requires interaction between the parties in order to create and de-
2012) corroborate the idea that the interaction between the parties sign the technology anew. However, if we consider that all KIBS can de-
can generate flows of information, knowledge and competences. velop customized solutions anew or modify organizational processes
and routines within customers business, e.g. an accountancy firm (p-
5.1.2. Factors influencing KIBS service triad configuration and its impacts on KIBS) can create a customized tax reporting method for a customer
innovation due to a change in the country's tax system, the type of the KIBS pur-
Once established that the service triad configuration can have an im- chased seems to matter more than the fact that it is a professional ser-
pact on the innovation generated, it is crucial to identify which aspects vice or not. As such, we adopt the idea that the type of KIBS, that is,
can influence the way the interactions in the KIBS service triad develop the extent to which KIBS involve the development of solutions anew,
and affect innovation outcomes. From our study of the literature nine may influence the level of innovation created and propose in the frame-
aspects emerge that influence the relationship between the KIBS service work that the type of KIBS purchased may influence the extent to which
triad configuration and the innovation outcomes. Four of these aspects buyers can benefit from the innovation.
are actual characteristics of the KIBS service triad (i.e. its integration, The other aspects that are listed in the framework as determinants of
the orientation to innovation of the purchasing function, the geograph- the KIBS triad relate to organizational and contextual characteristics that
ical proximity between parts, the type of KIBS purchased), while the may facilitate the adoption of a triadic approach for the purchase of KIBS.
other five aspects are organizational or contextual factors which can af- One of the factors listed relates to the overall maturity of the pur-
fect the configuration of the KIBS service triad (i.e. maturity of the pur- chasing function, which can change its role in the service triad and the
chasing function, buyer's organizational integration, KIBS service usage, content of the exchanges it is involved in. In a mature purchasing func-
maturity of KIBS's service sector, cultural factors). tion the higher professionalization of its representatives (Schiele, 2005)
The first aspect related to the features of the KIBS triad is the level of can ensure a more strategic contribution to the KIBS purchasing process
integration in the triad between the KIBS provider, the purchasing func- (Luzzini et al., 2015; McGinnis & Vallopra, 1999, 2001; Mendez &
tion and the user of the KIBS, a topic explored in the studies on the pur- Pearson, 1994; Nijssen et al., 2002; Tracey, 2004). Moreover, a mature
chase of KIBS (Table 6). Integration relates to how parties coordinate purchasing function can have a deeper involvement in the KIBS pur-
their processes as well as the extent to which they cooperate to achieve chasing due to its status and integration within the firm will be higher.
common objectives (Santos & D'Antone, 2014), and such collaborative The overall integration between departments in the buyer organiza-
practices between KIBS providers and customers enable the parties to tion, i.e. the extent to which different departments are used to coordi-
establish a clearer focus during the development effort and create nate and cooperate within the company (Santos & D'Antone, 2014)
means for both parties to share their competences (Eriksson & will therefore also favour the involvement of the purchasing depart-
Westerberg, 2011; Kadefors et al., 2007). They also enable knowledge ment in the KIBS purchasing, even on the initiative of the internal ser-
to be transferred between the parties (Huggins, 2011) and increase vice user. Higher integration also implies an easier understanding and
the trustworthiness, commitment, and openness of the parties. These communication between the two “principals” of the triad, and favour
features are vital to guarantee the successful implementation of the the alignment of their goals facilitating the identification of the need,
KIBS and the expected innovation outcomes (Eriksson & Vaghult, the specification phase, the selection of the more adapted supplier and
2000; Kadefors et al., 2007; Love et al., 1998). the interaction throughout the whole service delivery (Werr & Pemer,
Another aspect summed up in the framework is the orientation to 2007; West, 1997).
innovation of the purchasing function. It has been argued that, if pur- Another aspect that might determine the use of the KIBS triad is the
chasing is involved in the KIBS purchase, an efficiency-oriented behav- KIBS usage. This aspect is proposed based on the work of Wynstra et al.
iour could affect negatively the extent to which the parties tend to be (2006) and Koch and Stahlecker (2006), which argue that the usage
creative and innovative (O'Mahoney et al., 2013). Some authors also made of the service delivered, and the interaction patterns needed to
claim that purchasing should be oriented to obtain innovation out- buy/sell the services ultimately define if purchasing department should
comes. Wynstra et al. (2003), for instance, contend that purchasing be involved or not. As such, in the framework we propose that, depend-
should act in the sense of mobilizing and coordinating resources that ing on the KIBS usage, buying firms will be more inclined to adopt the
will enable more innovation. Similarly, Linder et al. (2003) suggest triadic approach. Not all KIBS modify organizational processes and rou-
that purchasing should establish processes and templates to buy inno- tines within customers business (Maister, 2004). Companies can hire
vation and ensure information and knowledge exchange between the KIBS providers to support their operating activities and, in such cases,
parties involved. If the purchasing function has a greater orientation to- solutions have lower levels of customization, limited effort maybe be re-
wards innovation, a more fruitful environment would exist to source in- quired in terms of designing the solution, since the customer already
novation and firms would be able to innovate more. This could also be knows what is needed, and little change in customers' processes is ex-
the case if KIBS providers and the function buying the KIBS were also pected. In such cases, following the logic of Wynstra et al. (2006), the
more oriented towards innovation, but the literature reviewed does buying firm would be more inclined to involve the purchasing function,
not focus on it. as a more cost-oriented approach might be beneficial.
S. D'Antone, J.B. Santos / Industrial Marketing Management 58 (2016) 172–186 183
The maturity of the industry has been identified as another factor to change internal processes or/and adapt business models (Muller &
that can impact the involvement of external suppliers in knowledge ac- Doloreux, 2009). In such cases, it is then possible to see firms generating
quisition (Johnsen, 2009; Johnsen et al., 2006). It is argued that when and adapting processes.
the technology or the industry are unstable and less mature, then the Finally, although we could expect that firms would have higher mo-
company would perceive as more risky to share ideas with the external tivation to look for innovation inputs outside the boundaries of the firms
context. Still, in these situations new suppliers might be contacted to ex- to support more strategic and complex product and service develop-
plore new potential ideas. Similarly, also in studies on purchasing KIBS ments, like complex product systems (CoPS) such as flight simulators,
the maturity of the KIBS sector has been mentioned as a potential factor air traffic control systems, and weapon systems (Davies & Brady,
influencing the involvement of different actors. In this context, it is ar- 2000), the work of Huang et al. (2009) shows that companies can rely
gued that when the service sector is more developed it is also more un- on KIBS even for more incremental/marginal innovation initiatives. As
derstood by the purchasers and the users. However, it is not clear such, the purchase of KIBS, depending what is being acquired, may gen-
whether this might facilitate the inclusion or the exclusion of the pur- erate radical or incremental innovation.
chasing function and the relation between the parties in the KIBS triad
(Werr & Pemer, 2007). 5.2. KIBS purchase and innovation: implications for practice and future
Finally, as from Pemer, Sieweke, et al. (2014) cultural dimensions research
such as uncertainty avoidance and masculinity–femininity may influ-
ence the adoption of formalized purchasing policies and, therefore, im- Although the framework and the relationships proposed need to be
pact on the role this function may play in the KIBS service triad. validated by further research, they draw attention to some important
implications.
5.1.3. KIBS triad effects on innovation First, a key aspect of the KIBS purchase is that it involves different ac-
Building on the literature on the role of KIBS in innovation systems tors, i.e. KIBS providers, purchasers and user functions, all of which have
and on KIBS purchase, it is possible to pose that the purchase of KIBS their own roles, expertise and vested interests. As such, it is important
can generate innovation for the buying firm (c.f. Eriksson & Vaghult, that all parties are aligned in terms of what they should do to achieve
2000; Gadrey & Gallouj, 1998; He & Wong, 2009; Hertog, 2000; Kang more significant innovation returns and work towards this common
& Kang, 2014; Linder et al., 2003; Muller & Zenker, 2001; Töllner et al., goal. Intensive interaction and information sharing within the triad fa-
2011). vour the alignment of these goals (Werr & Pemer, 2007; West, 1997)
The literature reviewed on KIBS purchase (Table 6) suggests that and enable knowledge to flow between the parties (Huggins, 2011),
KIBS purchase can lead to product and process innovation. Product in- creating a more fruitful environment for innovation for all the parties in-
novation tends to result from the acquisition of solutions because in volved. The actors of the KIBS triad should therefore invest on actions to
such cases, KIBS providers sell a combination of customized products stimulate integration between them during the KIBS purchase and deliv-
and services that meet specific needs of customers (Töllner et al., ery process. In line with this, geographical and cultural proximity be-
2011). Customers can also incur in product innovation when they tween the members of the triad seems important and should be pursued.
source R&D services that develop products anew to them or increment Questions however still remain in relation to how parties of the ser-
existing products (Huang, Chung, & Lin, 2009). Although the literature vice triad should organize themselves and behave during the KIBS pur-
on KIBS purchase dedicates much more attention to how KIBS purchase chase. It would be interesting to research more on these aspects and on
can lead to product innovation (Huang et al., 2009; Kadefors et al., 2007; their impact on innovation outcomes. There is an increasing body of re-
Töllner et al., 2011; West, 1997), Eriksson and Vaghult (2000) claim that search concerned with service triads (see Wynstra, Spring, &
KIBS are agents of change and can, thus, modify organizational processes Schoenherr, 2014), their configurations and dynamics. Future research
and routines. In a similar vein, Kadefors et al. (2007) and Yam et al. (2011) could build on this literature to further understand the issues raised here.
argue that KIBS providers also help their customers improve their work Another point to consider is that not all KIBS purchases have the
environment and develop capabilities to allocate human resources and same potential to generate innovation. The interaction and knowledge
money efficiently to innovation activities. As such, the purchase of KIBS exchange that takes place during KIBS delivery is central to increase
can also lead to process innovation within buying organizations. the flow of knowledge and ideas between the parties that can be used
Furthermore, the literature on the role of KIBS in innovation systems to foster innovation. In this line, the acquisition of KIBS that involve
claims that KIBS are facilitators and sources of innovation (Hertog, more design effort and the development of solutions anew seem to
2000; Miles et al., 1995 – Table 5). As such, in the framework, we sug- have a higher potential for innovation. The involvement of the purchas-
gest that there is the need to consider whether the purchase of KIBS is ing function in the KIBS purchase, depending on the use the KIBS will
generating innovation or simply leading to the adoption of innovation have, also seems beneficial, as long as purchases do not adopt an ex-
(Johnsen, 2009). In the literature, we observed that customers can ac- tremely efficiency-oriented perspective that may hinder creativity and
quire an innovative offering and, therefore, adopt an innovation created knowledge exchange. Furthermore, throughout the different phases of
by the KIBS firm (Eriksson & Vaghult, 2000; Huang et al., 2009; Töllner the KIBS purchasing process, activities of support and formalization to
et al., 2011), hire KIBS firms to support their innovation initiatives increase interaction can contribute to short-term innovation within
(Kadefors et al., 2007), or both (Kang & Kang, 2014; Linder et al., the perimeter of a specific project. On the other hand, more strategic
2003; West, 1997). When firms hire KIBS providers to support their in- purchasing activities and relationship-oriented interactions, such as
novative efforts, KIBS play a more active role in designing the solution the identification of internal needs or the definition and management
and helping customers implement them, like when a consultancy com- of suppliers' network, can contribute to long-term innovation, beyond
pany helps the customer implement a new call centre unit (Hertog, the perimeter of the specific project.
2000) or supports customers' new product and service development ef- On the counter-side of this argument is the fact that, in KIBS pur-
forts. Together customers and KIBS firms can generate products, ser- chases, interaction may not necessarily mean that parties are exchang-
vices and processes anew. Customers, on the other hand, can adopt ing knowledge and learning. As presented, KIBS purchasing processes
innovation by purchasing a new technology or product developed by a are iterative and changes and discoveries made in the delivery phase
KIBS firm, like when buyers acquired integrated solutions – i.e. combi- can require changes in initial specifications and in already imple-
nations of customized products and services designed to meet specific mented actions. Such iterations do not always result in positive out-
requirements of customers (Töllner et al., 2011). KIBS firms may also comes and parties may need to interact to solve problems and reduce
be hired to support the implementation of a new technology within conflict (Santos & Spring, 2015). In our review, we found little evi-
the buying firm. In adopting an innovation, the buying firm may have dence on the potential impact of such iterations on the interaction
184 S. D'Antone, J.B. Santos / Industrial Marketing Management 58 (2016) 172–186
and integration between the KIBS triad members. Future research providing a set of conditions that contribute to reduce negative cost
could explore this aspect further. It would be interesting to understand driven purchasing orientation and let a more strategic and value-
if conflict is necessarily bad and, if not, when conflict levels become so adding orientation prevail.
high that it starts damaging the potential innovation outcomes of the Finally, purchasing managers could also use the insights of this paper
KIBS purchase. Researchers could also explore how the KIBS triad can or- to better understand the impacts of their action on innovation and to
ganize to minimize problems associated with such issues. guide their strategies to foster innovation.
Last, our research suggests that projects can have different innova- In conclusion, our work integrates important streams of the litera-
tion results depending on the attention dedicated to innovation during ture that talk about correlated matters but ignore how they can benefit
the KIBS purchase. Customer firms will more likely innovate if they ac- from each other. In doing so, it offers more specific insights on how
tively participate during the KIBS delivery to learn from KIBS providers, firms can buy KIBS more effectively to boost innovation and on the con-
dedicate resources to co-produce with KIBS providers (Bettencourt tingencies involved in it. We also propose some practical guidelines that
et al., 2002), and invest resources in the co-developed products and ser- should help managers identify gaps in their day-to-day operations and
vices and in by-products. Not all customers however enter the KIBS pur- devise action plans.
chasing process aware of this. KIBS customers, especially user functions, This research however does not come without limitations. Struc-
may just want an answer to their problem (c.f. Maister, 2004) and, in tured literature reviews adopt a set of criteria to select relevant papers
such cases, may not behave in a way that would promote innovation. on the subject in question (Tranfield et al., 2003); nevertheless the sam-
It becomes therefore important for buying firms to have a greater orien- ple of texts collected is always selected based on their availability
tation towards innovation, if it wants to benefit the most of the innova- (Abbasi & Nilsson, 2012). In our case it was not different and texts
tion returns associated with the KIBS purchase. It seems, in line with that are relevant to the purchase of KIBS may not have been selected.
this, that purchasing should assume a more strategic role and focus To minimize this effect, we did consider a wide array of key words
on mobilizing resources to KIBS delivery processes (c.f. Wynstra and did our searchers in 5 different databases. In addition, the frame-
et al., 2003), establishing processes and procedures to create a fruit- work results from our analysis of the texts selected with the structured
ful cultural environment to source innovation (Linder et al., 2003) literature review process and is, thus, influenced by our interpretation
and, perhaps, even include innovation targets in KIBS initial specifi- of the texts and personal backgrounds (Abbasi & Nilsson, 2012). We
cations for suppliers. So far, mainly theoretical papers have dedicated at- however followed the procedures proposed by Wolf (2008) to increase
tention to this issue. More research is thus needed concerning the the validity and reliability of our classification process, namely: we ex-
orientation of the purchasing function and the associated outcomes so tracted our categories of analysis from two different literature streams
that we can offer more practical advice on what purchasers should do. that were related to our research questions; analysed a sample of papers
In a similar line, if the orientation of the purchasing function can matter, to check if both researchers were classifying the papers in the same way,
then the orientation of the other members of the KIBS triad can also and discussed the classification of papers that were difficult to analyse
play a role and this could also be investigated in the future. to reduce misinterpretations. Strengthen by our efforts with the meth-
odology, we hope that the insights raised in the paper can fuel future
6. Contributions and concluding remarks research.
Appendix A (continued)
(continued) SEC (2007) 1059. Brussels: Commission of the European Communities (Accessed on
line in October 2015 at: http://ref.sabanciuniv.edu/sites/ref.sabanciuniv.edu/files/
European KIBS sectors KIBS sub-sectors description innovation_in_services.pdf).
NACE code description Fitzsimmons, J. A., Noh, J., & Thies, E. (1998). Purchasing business services. Journal of
Business & Industrial Marketing, 13(4/5), 370–380.
741 Legal, accounting, book-keeping and auditing Freedman, A. M., & Stinson, G. H. (2004). Herding cats: Lessons learned from managing
activities, tax consultancy; market research and and coordinating organization development consultants. Consulting Psychology
public opinion polling; business and management Journal: Practice and Research, 56(1), 44.
consultancy; holdings Freytag, P., & Young, L. (2014). Introduction to special issue on innovations and networks:
7411 Legal activities Innovation of, within, through and by networks. Industrial Marketing Management,
7412 Accounting, book-keeping and auditing activities; 43(3), 361–364.
tax consultancy Gadrey, J., & Gallouj, F. (1998). The provider-customer interface in business and profes-
7413 Market research and public opinion polling sional services. Service Industries Journal, 18(2), 01–15.
7414 Business and management consultancy Garry, T. (2008). Affect and the role of corporate customer expertise within legal services.
Journal of Services Marketing, 22(4), 292–302.
activities
Geisler, E., & Hoang, W. (1992). Purchasing information technologies: Behavior patterns
742 Architectural and engineering activities and
in service companies. International Journal of Purchasing and Materials Management,
related technical consultancy
28(3), 38–42.
743 Technical testing and analysis He, Z. L., & Wong, P. K. (2009). Knowledge interaction with manufacturing clients and in-
744 Advertising novation of knowledge-intensive business services firms. Innovations, 11(3),
7484 Other business activities n.e.c. 264–278.
Hertog, P. D. (2000). Knowledge-intensive business services as co-producers of innova-
tion. International Journal of Innovation Management, 4(4), 491–528.
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seille, France. Her main research interests are in cultural and social aspects of markets and
accounting firms. European Journal of Marketing, 29(1), 27–39.
consumption with a specific focus on market shaping and market innovation in relation to
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society/morality, supply-demand interfaces, sustainable organizational purchasing, sus-
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vices: An exploratory study of German client companies. Journal of Purchasing and
Juliana Bonomi Santos is a Lecturer in Marketing Management and Competitiveness at
Supply Management, 18(3), 123–136.
Centro Universitário da FEI, Brazil. Her main research interests lie in the area of the oper-
Sonmez, M., & Moorhouse, A. (2010). Purchasing professional services: Which decision
ations of knowledge intensive business services and professional services, business rela-
criteria? Management Decision, 48(2), 189–206.
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Stanko, M. A., & Bonner, J. M. (2013). Projective customer competence: Projecting future
customer needs that drive innovation performance. Industrial Marketing
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