1991
DOI: 10.1111/j.1745-493x.1991.tb00528.x
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Purchasing from Minority Small Businesses

Abstract: This article employs a transaction costs framework to analyze the problems of Minority Business Enterprise (MBE) purchasing programs. The results from field surveys of small minority firms and corporate purchasing personnel indicate that program participants face differences in transaction costs and in their preferences of ways to overcome these costs. In the majority of situations, minority firms face higher transaction costs than do their corporate purchasing counterparts. The article offers recommendations … Show more

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Cited by 32 publications
(33 citation statements)
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References 4 publications
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“…Kacperczyk (2009) finds that the corporate attention to diversity can positively influence long-term shareholder value. In particular, purchasing from minority/women-owned business enterprises (MWBE) is conceptualised as an important element of purchasing diversity (Carter and Jennings, 2004;Dollinger et al, 1991;Carter et al, 1999). Inoue and Lee (2011) provide a more holistic view, whereby diversity can be measured by the extent of the appointment of women and minority (WM) executives, the promotion of WM and contracting with MWBE suppliers.…”
Section: H3: Csr Positively Reflects Sscmmentioning
confidence: 99%
“…Kacperczyk (2009) finds that the corporate attention to diversity can positively influence long-term shareholder value. In particular, purchasing from minority/women-owned business enterprises (MWBE) is conceptualised as an important element of purchasing diversity (Carter and Jennings, 2004;Dollinger et al, 1991;Carter et al, 1999). Inoue and Lee (2011) provide a more holistic view, whereby diversity can be measured by the extent of the appointment of women and minority (WM) executives, the promotion of WM and contracting with MWBE suppliers.…”
Section: H3: Csr Positively Reflects Sscmmentioning
confidence: 99%
“…Costs include the costs of searching for information and partners (in our case public procurement tenders), the costs of bargaining, monitoring and enforcing and, eventually, delivering what has been promised [79][80][81]. As [82] (p. 10) point out, transaction cost theory demands that interactions between economic units (partners) can "be analyzed by examining the nature and outcome of their economic transactions, and the costs of executing these transactions" which are not necessarily financial costs, and can include any type of costs such as time, energy and enthusiasm.…”
Section: Barriers Facing Immigrant Entrepreneursmentioning
confidence: 99%
“…In this scenario, transaction costs, economic theory suggests that the difficulty of promoting or executing buyer-supplier transactions between the public sector and minority entrepreneurs is because the costs of these transactions are being perceived as high by either the minority entrepreneur, the public organization or both. Faced with high transaction costs, the buyers and sellers that would normally be willing to make contract and work together will be unable to do so [82].…”
Section: Barriers Facing Immigrant Entrepreneursmentioning
confidence: 99%
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“…Such suppliers do tend to cluster infrequently in particular industries and may lack skills, capital, and technology. Moreover, small and medium enterprises (SMEs) may also represent their capabilities (either intentionally or otherwise) to win corporate contracts (Dollinger, Enz, & Daily, 1991). Krause et al (1999) confirm that these problems of access to capital, the conflict between supplier rationalisation and SD adoption, and a lack of qualified staff in This is a copy of the 'post-print'; i.e., the final draft, post-refereeing.…”
Section: Strategic and Supplier Diversity Risks And Challengesmentioning
confidence: 99%