TECHNICAL KNOWLEDGE AS VALUE-ADDED IN BUSINESS MARKETS - IMPLICATIONSFOR PROCUREMENT AND MARKETING

For many businesses, competitiveness is highly dependent on the techni cal knowledge of its operating personnel. This article presents the vi ew that vendors able to offer cutting-edge technological expertise rel evant to customers' operations as part of their overall ''bundled'' of fering add more value for customers than competitors emphasizing produ ct supply alone. Concurrently, it is suggested that purchasing and mat erials management should view technical knowledge as a strategic resou rce and adopt procurement strategies that encourage knowledge acquisit ion. An exploratory study was undertaken to determine the degree to wh ich technical knowledge is linked to more desirable decision-making st yles and outcomes using a sample of key buying center members (operati ng/manufacturing managers). The results of a mail survey indicate that higher levels of technical knowledge are linked to more desirable dec ision styles and decision outcomes, suggesting that managers' technica l knowledge is an important asset for firms with manufacturing or proc ess operations. Implications for procurement and marketing are discuss ed. (C) Elsevier Science Inc., 1997.