Procurement organisation in project-based setting: a multiple case study of engineer-to-order companies

Procurement decisions have a pervasive impact on supply chain performance and market success. This is particularly true in supply chains operating to deliver projects, such as construction and engineer- to-order companies, where a focal firm’s procurement decisions need to be coordinated with produc- tion activities to effectively satisfy customer orders. This study focuses on how the procurement department can be organised in order to support the needs of project-based supply chains better. Starting from a review of the procurement organisation literature in the context of project supply chains, we use a multiple case study methodology and discuss the procurement organisational choices in 11 project-based companies. Within and cross-case analyses allow identifying two possible arche- types, i.e. the procurement—focussed and the project-focussed organisations, as extremes on a con- tinuum that also includes hybrid solutions. The characteristics of each model are discussed, and results are articulated in three propositions connecting procurement gent factors.