Abstract
Purpose - This study examines the effects of purchasing activities and the purchasing function’s involvement with corporate strategy on manufacturing competitiveness as it is affected by national differences. In particular, we are interested in the research question: Do purchasing theories built on samples from mainly North American and Western European countries apply in other countries with different cultural contexts? Design/methodology/approach - Based on the 511 samples collected from ten countries or two distinct cultural groups (Group 1: Asia; Group 2: Western Europe/USA), we tested a purchasing model that is well-grounded in the literature. Two statistical methods were applied. First, multiple-group structural equation modeling (SEM) analysis was performed to test the method. We then applied regression analysis to examine whether the two country groups differ in their choice and efficacy of purchasing activities and strategic involvement. Findings - Our results suggest that the intensity and efficacy of purchasing activities and strategic involvement vary between the two country groups, Asia and Western Europe/USA. The Western Europe/USA, but the Asian samples do not. At the item level, we find a common set of purchasing activities contributing to manufacturing competitiveness regardless of national differences. The findings suggest that national differences matter in implementing purchasing activities. Research limitations/implications - This study adopted Hofstede’s culture scale to examine the effects of national culture on purchasing activities and decisions. Nonetheless, Hofstede’s culture score failed to predict the efficacy of purchasing activities and strategic involvement. Future OM research should examine and compare alternative culture scales (e.g., the GLOBE study) regarding their pros and cons for assessing various aspects of purchasing and supply chain decisions. A reliable scale that could accurately capture various cultural dimensions would be beneficial to multinational firms. Practical implications - Previously built purchasing theories and models may not be universal and more studies must be done to examine their applicability. Top managers from different nations could adopt and implement similar purchasing activities, but those activities could lead to different outcomes depending on the culture. Originality/value - This study represents a first attempt at using national culture to explain differences in purchasing activities and strategic involvement.
Purpose - This study examines the effects of purchasing activities and the purchasing function’s involvement with corporate strategy on manufacturing competitiveness as it is affected by national differences. In particular, we are interested in the research question: Do purchasing theories built on samples from mainly North American and Western European countries apply in other countries with different cultural contexts? Design/methodology/approach - Based on the 511 samples collected from ten countries or two distinct cultural groups (Group 1: Asia; Group 2: Western Europe/USA), we tested a purchasing model that is well-grounded in the literature. Two statistical methods were applied. First, multiple-group structural equation modeling (SEM) analysis was performed to test the method. We then applied regression analysis to examine whether the two country groups differ in their choice and efficacy of purchasing activities and strategic involvement. Findings - Our results suggest that the intensity and efficacy of purchasing activities and strategic involvement vary between the two country groups, Asia and Western Europe/USA. The Western Europe/USA, but the Asian samples do not. At the item level, we find a common set of purchasing activities contributing to manufacturing competitiveness regardless of national differences. The findings suggest that national differences matter in implementing purchasing activities. Research limitations/implications - This study adopted Hofstede’s culture scale to examine the effects of national culture on purchasing activities and decisions. Nonetheless, Hofstede’s culture score failed to predict the efficacy of purchasing activities and strategic involvement. Future OM research should examine and compare alternative culture scales (e.g., the GLOBE study) regarding their pros and cons for assessing various aspects of purchasing and supply chain decisions. A reliable scale that could accurately capture various cultural dimensions would be beneficial to multinational firms. Practical implications - Previously built purchasing theories and models may not be universal and more studies must be done to examine their applicability. Top managers from different nations could adopt and implement similar purchasing activities, but those activities could lead to different outcomes depending on the culture. Originality/value - This study represents a first attempt at using national culture to explain differences in purchasing activities and strategic involvement.
