The Culture of Purchasing Processes in Innovative Production Enterprises

The Development Perspective During the Pandemic Times

Keywords: culture of processes, purchasing processes, innovative manufacturing enterprises, stakeholders, pandemic times

Abstract

The issue of purchasing processes has been analyzed and studied by scientists for several years, and especially the time of the pandemic has shown that activities in the area of procurement require more analysis and focus on creating new values or developing a culture of these processes in organizations.

The COVID-19 pandemic caused the business world to undermine the reliability of the supply chain and showed that purchasing processes can be unstable. Purchasing functions faced demand-supply imbalances, which often lead to inventory issues, uncertain supply reliability, and high-risk relationships with various stakeholders, particularly suppliers and customers. Opaque supply chains and new realities require flexibility, a certain culture and maturity in sourcing functions to stay in business and succeed as a business in the new era. In order to build effective capabilities in purchasing processes and be able to flexibly respond to the challenges of the business environment, as well as meet the needs of stakeholders, enterprises must protect themselves with new norms, values and principles in this area.

The article, in the theoretical part, describes the term of purchasing processes, presents elements that can be considered as the basis for building a culture of purchasing processes in innovative production enterprises. The research part describes the research methodology and the results of the conducted surveys as well as the conclusions resulting from the research. The research was conducted on a group of 36 managers who deal with this area in innovative production companies listed on the NewConnect market in Poland. The analysis of the literature and the results of the research showed that the prospects for the development of the purchasing process culture are significantly high. Especially this aspect has become quite important during the pandemic and companies are increasingly including these activities in key business processes.

Author Biographies

Wioletta Wereda, Military University of Technology in Warsaw

Doctor of economics in management science; associate professor at the Faculty of Security, Logistics and Management, Military University of Technology in Warsaw, Poland. She is the author of a variety of studies and business. She has also written and co-written three monographs and over 100 scientific articles in the field of management, published both in Poland and abroad. She was a lecturer of the BA and MA studies at Kozminski University. The scientific interests of Wioletta focus on the issues of smart organisations, efficient stakeholder relationship management, sales management methods, resilient leadership and new approaches to the designing of digital marketing and society. She is also a member of Scientific Boards of International Journals (inter alia Management Dynamics in the Knowledge Economy, Hyperion International Journal of Econophysics and New Economy), and she is a scientific reviewer in different entities (USA, Italy, Romania, Lithuania) including Scientific Boards of national journals. She has been editor-in-chief the annual international Modern Management Systems since 2021. She lectures and runs workshops at universities in Romania, Lithuania and Slovenia. She is a member of the Scientific Society for Contemporary Management. She works as a trainer, consultant, mentor and facilitator for many companies and public organizations.

Paweł Wereda, PSI Spółdzielczy Producent Sprężyn Company in Siedlce

Master of Management and Marketing, Ph.D. student at the War Studies University in Warsaw. Specialist of Purchasing and Logistics in the production companies for more than 15 years. He has also written and co-written three scientific articles in the field of purchasing management, published both in Poland and abroad. He works as a trainer and a quality auditor in production enterprises. His scientific interests of focus on purchasing processes and logistics.

References

Aguilar, F.J. (2002). Top management’s view of the purchasing function. Journal of Purchasing & Materials, 25(3), 16–21.

Boer, L., Labro, E. & Morlacchi, P. (2001). A review of methods support-ing supplier selection. European Journal of Purchasing & Supply Man-agement, 7(2), 75–89.

Bourne, L. (2009). Stakeholder Relationship Management. In A Maturity Model for Organisational Implementation. Burlington: Gower Publish-ing Ltd.

Burt, D.N., Petcavage, S.D. & Pinkerton, R.L. (2012). Proactive Purchasing in the Supply Chain. The Key to World-Class Procurement. New York: McGraw-Hill.

Cameron, K. & Quinn R. (2006). Kultura organizacyjna – diagnoza i zmiany. Kraków: Oficyna Ekonomiczna.

Carr, A.S. (2002). The impact of purchasing and supplier involvement on strategic purchasing and its impact on firm’s performance. Interna-tional Journal of Operations and Production Management, 22(9), 1032–1053.

Carter, R. & Kirby, S. (2006). Practical Procurement. Cambridge Academ-ic: Gt. Shelford, Cambridge.

Daft, R.L. (1992). Organization Theory and Design, 4th ed. West Publish-ing: St. Paul et al.

Dawes, P.L., Dowling, G.R., & Patterson, P.G. (1992). Factors Affecting the Structure of Buying Centers for the Purchase of Professional Advi-sory Services. International Journal of Research in Marketing, 9(3), 269–279.

Domańska-Szaruga, B., & Knap-Stefaniuk, A. (2022). Diagnosis of the organizational culture of multicultural enterprises – introduction to in-depth research. Nowoczesne Systemy Zarządzania, Vol. 17, No. 4, 37–47.

Emmett, S. & Crocker, B. (2008). Excellence in Procurement. Cambridge Academic: Gt. Shelford, Cambridge.

Fudaliński, J., & Pawlak, K. (2014). Rola innowacyjności działu zakupów w kształtowaniu poziomu konkurencyjności firm globalnych. Przegląd organizacji, 11, 10–16.

Garrido-Samaniego, M.J., & Gutiérrez-Cillán, J. (2004). Determinants of Influence and Participation in the Buying Center: An Analysis of Span-ish Industrial Companies. Journal of Business and Industrial Marketing, 19(5), 320–336.

Germain, R., & Dröge, C. (1998). The Context, Organizational Design, and Performance of JIT Buying Versus JIT Buying Firms. International Journal of Purchasing and Materials Management, 34(2), 12–18.

Hall, H.H., Haas, J.E., & Johnson, N.J. (1967). Organizational Size, Com-plexity, and Formalization. American Sociological Review, 32(6), 903–912.

Hartmann, E., Trautmann, G., & Jahns C. (2008). Organizational Design Implications of Global Sourcing: A Multiple Case Study Analysis on the Application of Control Mechanisms. Journal of Purchasing and Supply Management, 14(1), 28–42.

Hofstede, G. (2000). Kultury i organizacje. Zaprogramowanie umysłu. Warszawa: PWE.

Johnson, P.F., Leenders, M.R., & McCue, C.P. (2003). A Comparison of Purchasing’s Organizational Roles and Responsibilities in the Public and Private Sector. Journal of Public Procurement, 3(1), 57–74.

Johnston, W.J. & Bonoma, T.V. (1981). The Buying Center: Structure and Interaction Patterns. Journal of Marketing, 45(3), 143–156.

Juha, M. & Pentti, J. (2008). Managing Risks in Organizational Purchasing Through Adaptation of Buying Centre Structure and the Buying Pro-cess. Journal of Purchasing and Supply Management, 14(4), 253–262.

Klepacki, B. & Martyniuk, R. (2012). Zarządzanie procesami zaopatrzenia w przedsiębiorstwie. Logistyka, 6, 487–498.

Krukowski, K. (2016). Kulturowe uwarunkowania dojrzałości procesowej urzędów miast. Toruń: Wydawnictwo Naukowe Uniwersytetu Mikoła-ja Kopernika.

Leenders, M.R., Nollet, J., & Ellram, L.M. (1994). Adapting purchasing to supply chain management. International Journal of Physical Distribu-tion & Logistics Management, 24(1), 17–32.

Lysons, K. (2004). Zakupy zaopatrzeniowe. Warszawa: PWE.

Lysons, K. & Farrington, B. (2006). Purchasing and Supply Chain Man-agement. Harlow: Pearson Education.

Lysons, K., & Gillingham, M. (2003). Purchasing and Supply Chain Man-agement. 6th Edition. Pearson Education: England.

McCabe, D.L. (1987). Buying Group Structure: Constriction at the Top. Journal of Marketing, 51(4), 89–98.

McCue, C.P., & Pitzer, J.T. (2000). Centralised vs. Decentralised Pur-chasing: Current Trends in Governmental Procurement Practices. Journal of Public Budgeting, Accounting & Financial Management, 12(3), 400–421.

Mensah, C. & Tuo, G. (2013). Evaluation of Procurement Processes and its Operational Performance in the Public Sector of Ghana: A Case Study of Komfo Anokye Teaching Hospital and Kumasi Polytechnic. European Journal of Business and Management, Vol. 5, No. 29, 121–132.

Monczka, R.M., Trent, R.J. & Hanfield, R.B. (2002). Purchasing and Supply Chain Management. 2nd Edition. USA: Thomson Learning.

Porter, M.E. (2004). Competitive Advantage. Simon & Schusters.

Price, J.L. (1972). Handbook of Organizational Measurement. Heath: Lexington, MA.

Purchasing and Business Performance. Supply Chain Management, 11(1), 56–64.

Quintens, L., Pauwels, P., & Matthyssens, P. (2006). Global Purchasing Strategy: Conceptualization and Measurement. Industrial Marketing Management, 35(7), 881–891.

Robbins, S.P. (1990). Organization Theory: Structure, Design and Applica-tions, 3rd ed. Prentice Hall: New Jersey et al.

Rutkowski K. (2013). Zakupy w biznesie – potrzeba strategicznej reorien-tacji. Kwartalnik Nauk o Przedsiębiorstwie, 4, 35–45.

Sanchez-Rodrıguez, C., Hemsworth, D., Martınez-Lorente, A.R., & Clavel, S.G. (2006). An Empirical Study on the Impact of Standardization of Materials and Purchasing Procedures on Purchasing and Business Performance. Supply Chain Management An International Journal, 11(1), 56–64.

Schein, E.H. (1992). Organisational culture and Leadership. San Francisco: Jossey-Bass.

Spekman, R.E. & Stern, L.W. (1979). Environmental Uncertainty and Buy-ing Group Structure: An Empirical Investigation. Journal of Marketing, 43(2), 54–64.

Sułkowski, Ł. (2012). Kulturowe procesy zarządzania. Warszawa: Difin.

The Evolution of Procurement Culture (2016), www.procurious.com.

Trautmann, G., Turkulainen, V., Hartmann, E., & Bals, L. (2009). Integra-tion in the Global Sourcing Organization: An Information Processing Perspective. Journal of Supply Chain Management, 45(2), 57–74.

van Weele, A.J. (2020). Purchasing and Supply Chain Management. Analy-sis, Strategy, Planning and Practice. Andover: Cengage Learning.

Wereda, W., Moch, N., & Wachulak, A. (2022). The Importance of Stake-holders in Managing a Safe City. Sustainability, 14(1), 1–17.

Wereda, W. (2018). Model of building stakeholder engagement in the functioning of the organization – trust and risk. Annales Universitatis Mariae Curie-Skłodowska, Sec. H Oeconomia, 52, 111–127.

Woźniak, J., Pawlak, K., & Zaskórski, P. (2018) Technologie teleinforma-tyczne w gospodarce informacyjnej i komunikowaniu się współcze-snych przedsiębiorstw. Perspektywa rynku NewConnect. Warszawa: Wydawnictwo WAT.

Published
2023-08-10
How to Cite
[1]
Wereda, W. and Wereda, P. 2023. The Culture of Purchasing Processes in Innovative Production Enterprises: The Development Perspective During the Pandemic Times. Perspectives on Culture. 42, 3 (Aug. 2023), 269-290. DOI:https://doi.org/10.35765/pk.2023.4203.19.
Section
Management and Marketing