How Purchasing and Supply Management Practices Affect Key Success Factors: The Case of the Offshore-wind Supply Chain

Purpose
– In reference to the offshore-wind industry, this study aims to show that innovative purchasing and supply management practices can increase both firm- and industry-level performance. This paper also includes a description of the offshore-wind supply chain, which remains understudied in academic literature, despite increasing global development of offshore-wind farms.

Design/methodology/approach
– Offshore-wind farm projects use more and larger turbines, which greatly increase the complexity of the supply chain. Innovative purchasing and supply management practices, designed to tackle this growing complexity, could help companies achieve the key success factors that define this industry. The evidence comes from real-world, offshore-wind farm projects, with the London Array farm as a principal example.

Findings
– Innovative purchasing and supply management practices include decisions to make or buy, contract forms and local-to-global sourcing. These practices affect the key success factors of the industry by increasing competition, capabilities and control.

Originality/value
– Purchasing and supply management practices could affect industry-level performance. This paper is among the first ones to provide an analysis of the offshore-wind supply chain and its evolution.