Commercial and Contract Management - Underlying Theoretical Concepts and Models

It is widely acknowledged that the ability to clearly articulate a profession’s knowledge base is crucial when defining a discrete professional group. As with project management and supply chain management, the knowledge based of the commercial and contract management (C&CM) function is an amalgam of theories, concepts and models drawn from the research and emerging practice of a variety of academic disciplines. To investigate the interrelationship between and relevance of these theories and concepts to the C&CM function/profession, and the general level of awareness of them among practitioners, a global survey of the IACCM’s membership was conducted in October 2007. The results of the survey presented in this paper reveal that the most familiar theories, concepts and models were: leadership, best value/value for money, competitive advantage, governance, strategy, globalisation, core competence, commitment, creativity, and negotiation theory. The academic disciplines associated with the most familiar 25 items were: organisational behaviour, strategic management, economics, marketing, law, operations management and accountancy. Overall, the results indicate a high degree of homogeneity in the respondent’s familiarity with the items irrespective of their location or prior level of education. Significant differences were, however, established in 33 of the items between subgroups based on the function of the C&CM practitioner. Generally, these differences could have been predicted, for example, C&CM practitioners supporting procurement were found to be more familiar with procurement theory, strategic purchasing, supply chains, supplier segmentation and the theory of incentives etc. compare to those practitioners who support sales or both sales and procurement. In terms of the relevance of the theories, concepts and models to the C&CM function/profession, negotiation analysis, problem-solving interest-based negotiation, negotiation theory, best value/value for money, trust, competitive advantage, and contract law model were considered to be highly relevant. The academic disciplines associated with the most relevant 25 items were: organisational behaviour, strategic management, operations management, economics, marketing, law, and operational research.