4.3 Article

Critical success factors for managing purchasing groups

Journal

JOURNAL OF PURCHASING AND SUPPLY MANAGEMENT
Volume 16, Issue 1, Pages 51-60

Publisher

ELSEVIER SCI LTD
DOI: 10.1016/j.pursup.2009.10.002

Keywords

Success factors; Cooperative purchasing; Discriminant function analysis

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In this article, we identify critical success factors for managing small and intensive purchasing groups by comparing successful and unsuccessful purchasing groups in a large-scale survey. The analysis of our data set suggests the following success factors: no enforced participation, sufficient total contribution of efforts, all members contribute with knowledge, continuity in member representation, communication, and fair allocation of savings. The findings suggest among other things that it is important that after a voluntary decision has been taken to cooperate, the members need to show that they are committed. Other factors such as interorganisational trust and formal structures are important when establishing interorganisational cooperation, but should otherwise be considered as necessary yet not sufficient in the management phase of a successful purchasing group. (C) 2009 Elsevier Ltd. All rights reserved.

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