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    Strategic sourcing with multi-stakeholders through value co-creation: An evidence from global health care company

    Nudurupati, SS, Bhattacharya, A, Lascelles, D and Caton, N (2015) Strategic sourcing with multi-stakeholders through value co-creation: An evidence from global health care company. International Journal of Production Economics, 166. ISSN 0925-5273


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    This paper explores how a firm is able to consider the value co-creation potential of its suppliers, mediate the goals and actions of both its external and internal stakeholders, and develop strategic supplier partnerships that go beyond compliance to contractual agreements to innovative value co-creation activities. The study contributes to filling a knowledge gap in understanding the process of value co-creation in a service context by providing empirical evidence, by means of case-based action research in a global healthcare company (HCC), on strategic multi-sourcing decision-making and value co-creation within multi-stakeholders׳ collaborative partnerships. The case-based action research discussed in the paper lays a foundation for normative theories of multi-stakeholder multi-souring strategic decision-making. The paper describes how the firm uses the Kraljic portfolio purchasing matrix for initial screening of potential suppliers; identifies multiple stakeholders and mediates multiple stakeholder goals to establish behavioural factors for strategic sourcing decision-making and evaluating the effectiveness of multi-stakeholder collaborative decision-making during the process to develop a value co-creation system. The arguments and findings draw attention to a number of specific stakeholder expectations and goals that need to be considered before embarking on a strategy of a collaborative multi-stakeholder supplier innovation strategy. The findings of the research vindicate and qualify the approach used to develop an innovative collaborative partnership through stakeholder mediation to co-create value.

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