SUMMARY This study empirically examines the influence of organizational culture on supplier diversity. It examines the relationship between buyer behavior and culture using the Organizational Culture for Diversity Inventory (OCDI). The research assesses 12 business units within a heavy equipment manufacturer and uses confirmatory factor analysis to test an explanatory model of supplier diversity effectiveness. Results indicate achievement and affiliative culture styles are important to the effectiveness of supplier diversity. Moreover, in business units characterized by defensive or passive–defensive cultures, minority sourcing was lower. Conversely, the business units with constructive cultures for diversity had higher minority sourcing.
Diverse, well-developed supply chains promote business success by reducing costs, enhancing innovation, successfully integrating acquired businesses and reaching new markets. Managing such inter-organizational relationships improves when the organizational culture is humanistic, achievement oriented, affiliative and self-actualizing and when similar perceptions of these values are held across all buyer and supplier groups. Based on a survey of a diverse group of supplier chief executive officers (n=70) and buyers in a focal organization (n=79), this study finds that African-American executives are less likely to perceive constructive dimensions of organizational culture, while Hispanic executives are more likely to perceive negative dimensions, while buyers perceive the culture as constructive for a culture of diversity.
Purpose -The purpose of this paper is to contribute to a better understanding of how sociallyembedded information systems (IS), knowledge, and firm capabilities can impact the post-merger integration efforts of a firm. In particular, this research seeks to identify, describe, and analyze how socially-embedded resources hindered the integration of the procurement function following the merger of two telecommunications firms. Design/methodology/approach -This research was designed as a longitudinal exploratory study of a single case. The design involved multiple interviews, participant observation, and an evaluation of multiple data sources. Data were collected to develop a comprehensive and reliable understanding of events and outcomes related to the systems integration effort. Process models are used to show the development of phenomena over time.Findings -The findings of the research are twofold. First, in line with previous findings on sociallyembedded resources, the research shows that socially-embedded resources hindered the ability of a merged firm to integrate some resources. Previous research argued that social constraints can prevent a firm from changing the way it uses resources to establish a competitive advantage, and this research confirms those findings. Second, this research is an important contribution because it identifies two social constraints in particular -cognitive sunk costs and the reluctance to defy social traditions -that contributed to the inability of the merged firm to successfully integrate the procurement function following a merger.Research limitations/implications -The findings of this study provide empirical evidence to support the theoretical argument that the socially embedded resources involved in the IS, knowledge, and firm capabilities of each of the firms prior to the merger enabled them to establish a competitive advantage in their respective market environments. Further, the data provide validation for the idea that the social context in which firms compete does, in fact, contribute to the development of competitive advantages. The RBV is also extended by showing that the same social contexts can also prevent firms from integrating important resources following a corporate merger. Originality/value -One of the main objectives of executive management following a corporate merger is to lead the organization in skillfully integrating key resources of the merged organization. However, most firms cannot successfully engage in post-merger integration efforts unless they fully understand how resources such as IS, knowledge, and firm capabilities can help or hinder their integration efforts. By highlighting one firm's efforts to integrate resources following a merger, the paper provides concrete examples of potential problems that can arise. Potential problems and hindrances are presented in a strategic checklist for managerial consideration.
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