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Cooperative Purchasing in Small and Medium-Sized Enterprises

Chapter

Abstract

Despite the increasing research interests in the purchasing group, cooperative purchasing in small and medium-sized enterprises (SMEs) has not received significant attention from the operations and supply chain management researcher. This study investigates the typical advantages of cooperative purchasing for SME retailers, and critical success factors for managing a purchasing group, using a case study of a purchasing group established by Chinese SME retailers. The study suggests that a successful purchasing group can help SME retailers to survive in today’s competitive marketplace. The main advantages of cooperative purchasing for SME retailers are lower purchasing prices, mutual learning and support, dealing with illegal bribes, and quality improvement. The success factors for SME retailers to manage a purchasing group are good guanxi (personal and business relationships) among group members, similar characteristics of group members, similar personality traits of top executives, and the role of a “big brother” (group leader) in the group. This study also provides practical insights for retail managers to consider when developing a purchasing group in dynamic environments, in order to achieve the benefits of cooperative purchasing.

Keywords

Success Factor Critical Success Factor Retail Sector Resource Dependence Theory Psychic Distance 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag London 2014

Authors and Affiliations

  1. 1.Norwich Business SchoolUniversity of East AngliaLondonUK

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