Critical success factors for managing purchasing groups

• Published in: Journal of purchasing and supply management Vol. 16; no. 1; pp. 51 - 60
• Main Authors: Schotanus, Fredo, Telgen, Jan, Boer, Luitzen de
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01.03.2010
• Subjects: Cooperative purchasing; Discriminant function analysis; Success factors; Success factors; Cooperative purchasing; Discriminant function analysis
• ISSN: 1478-4092; 1873-6505
• DOI: 10.1016/j.pursup.2009.10.002

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.