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Augmented Purchasing : Enhancing Reactive Risk Management in Procurement
Pas, T.C. (2025) Augmented Purchasing : Enhancing Reactive Risk Management in Procurement.
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| Abstract: | In a supply chain that is global and complex, purchasers face vast amounts of data. As human decision-makers are bounded by their limited rationality, this leads to suboptimal responses in reactive risk management. As digitalisation advances, the collaboration between humans and machines, i.e. augmentation, can overcome bounded rationality. This study focuses on how augmentation can improve reactive risk management through overcoming bounded rationality. The findings show that augmentation supports more rational and more timely decision making by enabling forecasting & pattern recognition, less human actions, planning, tracking & mapping, and visualisation. However, the effectiveness of augmentation’s effect on overcoming bounded rationality depends on the quality, uniformity and completeness of data. Moreover, purchaser skills tend to change to make effective use of augmentation possibilities. This emphasises a hybrid set of skills such as computer literacy, analytical thinking, data management, negotiation, system thinking and supplier relationship management. This study adds to the transaction cost economic theory by showing how augmentation can overcome bounded rationality. It extends reactive risk management frameworks by integrating augmentation as a tool through the risk management process steps. Lastly, it adds to literature of purchaser’s skills by focussing specifically on the effect of augmentation within the purchasing role. |
| Item Type: | Essay (Bachelor) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 85 business administration, organizational science |
| Programme: | International Business Administration BSc (50952) |
| Link to this item: | https://purl.utwente.nl/essays/106810 |
| Export this item as: | BibTeX EndNote HTML Citation Reference Manager |
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