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

Abstract

Purpose In reference to the offshore-wind industry, this study shows that innovative purchasing and supply management practices can increase not only firm- but also industry-level performance. This article also includes a description of the offshore-wind supply chain, which remains under studied in academic literature, despite increasing global development of offshore-wind farms. Design/methodology/approach Offshore-wind farm projects employ 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 article is among the first ones to provide an analysis of the offshore-wind supply chain and its evolution.