Purchasing and supplier involvement in process improvement: A source of competitive advantage

While purchasing and supplier involvement in new product development has been studied, little research has been conducted into purchasing and supplier involvement in production process development/ improvement. Two hundred seventy-one senior managers responded to a mail questionnaire regarding purchasing and supplier involvement in process development/improvement in anufacturing, service, not-for-profit, and government organizations. Factor scores of the research variables were analyzed using t-tests to assess the effects of process as a source of competitive advantage, purchasing involvement, and supplier involvement on process development/improvement practice and strategy. Contingency table analysis with the chi-square statistic was used to assess the effects of industry category. It was found that processes contribute to competitive advantage, purchasing plays a major role in process development/improvement, and that purchasing and supplier involvement contributes to process development/improvement in all industry categories. These contributions are greatest in manufacturing. The implications of this research to purchasing professionals, researchers, and academicians are discussed.