Knowledge Transformation in Purchasing and Supply Management: A Process Perspective

ABSTRACT To succeed in the face of constantly changing business challenges, Purchasing and Supply Management (PSM) needs to develop strong knowledge management (KM) mechanisms to equip individuals with accurate, reliable, and up‐to‐date knowledge and has, therefore, become a significant factor in building competence in this area. Although inter‐organizational processes within the context of supply chains and supplier development have previously been studied, little is known about the transformative nature of the PSM function itself. Following a process perspective and drawing on the SECI model of knowledge creation, we contextualize the construct of knowledge assets in PSM and conceptualize mechanisms behind their conversion. Based on thirty‐four interviews with PSM practitioners, we show how PSM knowledge is curated and study the applications of KM dynamics within the PSM practice. Our work also highlights barriers to this process and provides recommendations for improving PSM practices and strengthening learning capabilities.