Organizational Learning in Global Purchasing: A Model and Test of Internal Users and Corporate Buyers*

Abstract

This research examines a model centered on organizational learning in purchasing. Two different studies are conducted to test the hypotheses among purchasing users (Study 1) and buyers (Study 2). The user sample consists of users representing 355 strategic business units of a Fortune 500 multinational corporation. The buyer sample consists of corporate buyers of 200 multinational corporations drawn from the membership directory of the National Association of Purchasing Management (NAPM). In each study, the focus is on the learning relationships between corporate buyers and internal users in the purchasing organization. Based on the two studies, the results suggest that organizational learning in the purchasing process is influenced by the organizational culture factors of localness, transformational leadership, and openness. Organizational learning has a positive effect on information processing in the purchasing system, which, in turn, has a positive influence on the cycle time of the purchasing process.

The role of strategic purchasing in dynamic capability development and deployment

“…Given the boundary spanning function of purchasing towards the supply base of the firm, knowledge scanning is a key dynamic capability related to strategic purchasing (Hult et al, 2000(Hult et al, , 2006. We anticipate the positive effect of these two dynamic capability enablers in all organizational settings (i.e.…”

“…The boundary spanning and knowledge channeling nature of strategic purchasing (Hult et al, 2000;Zhang et al, 2011) may allow such involvement to be translated into dynamic capabilities and in turn improved performance (Grant, 1996;Teece et al, 1997). Yet, the impact of the change in purchasing's role on dynamic capability development and deployment remains empirically underdeveloped.…”

“…When exercised strategically, the purchasing function acts as boundary spanner of the firm (Zhang et al, 2011), channeling knowledge flows outside in and inside out (Hult et al, 2000). Consequently, strategic purchasing can leverage its internal involvement in strategic activities and directly influence the resource mix of the firm (Barney, 2012;Chen et al, 2004;Priem and Swink, 2012).…”

Determinants of International Purchasing Success: An Analysis of the Status Quo of Research

“…Structural equation models came up in the field, but have not been the first choice methodology in purchasing research (e.g. Fawcett & Scully, 1998;Petersen et al, 2000;Hult, Hurley, Giunipero, & Nichols, 2000;Skarmeas, Katsikeas, & Schlegelmilch, 2002;Ha, Karande, & Singhapakdi, 2004). Most papers still focused on descriptive analysis techniques.…”

Information reception and processing in purchasing a comparison of public and private sector purchasing

“…Oral communication capability has three dimensions: the ability to pass on information, the ability to persuade and the ability to listen and understand (Large 2006). Hult et al (2000) suggested that there is a positive relationship among organisational learning, information processing and the cycle time of the purchasing process. These results highlight the importance of dealing with communication skills and its components.…”