Sourcing Strategies to Keep up with Competition: The Case of SAP

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    This paper applies the Red Queen theory to explain how organizations utilize various sourcing arrangements in order to compete in an evolutionary arms race where only the strongest competitors will survive. The case study incorporates competition, and views sourcing strategies as a means to improve the firm’s viability to survive competition in the marketplace. The study begins by positioning the Red Queen theory within the sourcing literature. It subsequently applies the framework to a case study of SAP AG to illustrate how sourcing strategies have changed over time in response to the logic of competition. The case study reveals that (a) organizations are adaptive systems and capable of learning to make strategic changes pertaining to sourcing arrangements; (b) organizations select the terms on which they want to compete by developing certain capabilities within the firm; (c) organizations are reflexive and over time develop competitive hysteresis which allows them to become stronger competitors. In the case of SAP AG, various sourcing arrangements were selected over its 40-year history to respond to technological and market changes.
    This paper applies the Red Queen theory to explain how organizations utilize various sourcing arrangements in order to compete in an evolutionary arms race where only the strongest competitors will survive. The case study incorporates competition, and views sourcing strategies as a means to improve the firm’s viability to survive competition in the marketplace. The study begins by positioning the Red Queen theory within the sourcing literature. It subsequently applies the framework to a case study of SAP AG to illustrate how sourcing strategies have changed over time in response to the logic of competition. The case study reveals that (a) organizations are adaptive systems and capable of learning to make strategic changes pertaining to sourcing arrangements; (b) organizations select the terms on which they want to compete by developing certain capabilities within the firm; (c) organizations are reflexive and over time develop competitive hysteresis which allows them to become stronger competitors. In the case of SAP AG, various sourcing arrangements were selected over its 40-year history to respond to technological and market changes.
    LanguageEnglish
    JournalInternational Journal of Information Systems and Project Management
    Volume2
    Issue number4
    Pages61-74
    Number of pages13
    ISSN2182-7796
    DOIs
    StatePublished - 2014

    Keywords

    • ERP Vendor
    • Sourcing Strategies
    • Red Queen Theory
    • SAP

    Cite this

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    title = "Sourcing Strategies to Keep up with Competition: The Case of SAP",
    abstract = "This paper applies the Red Queen theory to explain how organizations utilize various sourcing arrangements in order to compete in an evolutionary arms race where only the strongest competitors will survive. The case study incorporates competition, and views sourcing strategies as a means to improve the firm’s viability to survive competition in the marketplace. The study begins by positioning the Red Queen theory within the sourcing literature. It subsequently applies the framework to a case study of SAP AG to illustrate how sourcing strategies have changed over time in response to the logic of competition. The case study reveals that (a) organizations are adaptive systems and capable of learning to make strategic changes pertaining to sourcing arrangements; (b) organizations select the terms on which they want to compete by developing certain capabilities within the firm; (c) organizations are reflexive and over time develop competitive hysteresis which allows them to become stronger competitors. In the case of SAP AG, various sourcing arrangements were selected over its 40-year history to respond to technological and market changes.",
    keywords = "ERP Vendor, Sourcing Strategies, Red Queen Theory, SAP, ERP Vendor, Sourcing Strategies, Red Queen Theory, SAP",
    author = "Michelle Antero and Jonas Hedman and Stefan Henningsson",
    year = "2014",
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    language = "English",
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    pages = "61--74",
    journal = "International Journal of Information Systems and Project Management",
    issn = "2182-7796",
    publisher = "SciKA - Association for Promotion and Dissemination of Scientific Knowledge",
    number = "4",

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    Sourcing Strategies to Keep up with Competition : The Case of SAP. / Antero, Michelle; Hedman, Jonas; Henningsson, Stefan.

    In: International Journal of Information Systems and Project Management, Vol. 2, No. 4, 2014, p. 61-74.

    Research output: Contribution to journalJournal articleResearchpeer-review

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    T2 - International Journal of Information Systems and Project Management

    AU - Antero,Michelle

    AU - Hedman,Jonas

    AU - Henningsson,Stefan

    PY - 2014

    Y1 - 2014

    N2 - This paper applies the Red Queen theory to explain how organizations utilize various sourcing arrangements in order to compete in an evolutionary arms race where only the strongest competitors will survive. The case study incorporates competition, and views sourcing strategies as a means to improve the firm’s viability to survive competition in the marketplace. The study begins by positioning the Red Queen theory within the sourcing literature. It subsequently applies the framework to a case study of SAP AG to illustrate how sourcing strategies have changed over time in response to the logic of competition. The case study reveals that (a) organizations are adaptive systems and capable of learning to make strategic changes pertaining to sourcing arrangements; (b) organizations select the terms on which they want to compete by developing certain capabilities within the firm; (c) organizations are reflexive and over time develop competitive hysteresis which allows them to become stronger competitors. In the case of SAP AG, various sourcing arrangements were selected over its 40-year history to respond to technological and market changes.

    AB - This paper applies the Red Queen theory to explain how organizations utilize various sourcing arrangements in order to compete in an evolutionary arms race where only the strongest competitors will survive. The case study incorporates competition, and views sourcing strategies as a means to improve the firm’s viability to survive competition in the marketplace. The study begins by positioning the Red Queen theory within the sourcing literature. It subsequently applies the framework to a case study of SAP AG to illustrate how sourcing strategies have changed over time in response to the logic of competition. The case study reveals that (a) organizations are adaptive systems and capable of learning to make strategic changes pertaining to sourcing arrangements; (b) organizations select the terms on which they want to compete by developing certain capabilities within the firm; (c) organizations are reflexive and over time develop competitive hysteresis which allows them to become stronger competitors. In the case of SAP AG, various sourcing arrangements were selected over its 40-year history to respond to technological and market changes.

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    KW - Red Queen Theory

    KW - SAP

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