Purchasing and Supplier Involvement in Process Improvement: A Source of Competitive Advantage

SUMMARY 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.