Redefining the Purchasing Function: An Entrepreneurial Perspective

Turbulence in the external environments of companies is producing a number of changes in the roles and responsibilities of the purchasing function. Capitalizing on the opportunities created under such conditions requires that purchasing be approached as a potential source of competitive advantage that adds value to the corporate operation. One perspective is that functions such as purchasing must become more entrepreneurial if they are to make significant strategic contributions in the future. This article summarizes the results of a study directed at purchasing managers regarding the nature of entrepreneurship and its applicability within the purchasing function. The results suggest that managers are placing increasing importance on the need for entrepreneurship, and are able to identify specific activities within purchasing where entrepreneurship is most critical. Major obstacles in achieving an entrepreneurship focus are identified, and examples of entrepreneurial behavior within purchasing are provided.