Organizing and managing supplier relationships in information technology procurement

  • Authors:
  • Robert Heckman

  • Affiliations:
  • Syracuse University, School of Information Studies, Syracuse, NY 13244, USA

  • Venue:
  • International Journal of Information Management: The Journal for Information Professionals
  • Year:
  • 1999

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Abstract

This paper begins exploration of the broad question: how should the relationship between IT suppliers and customers be organized and managed? It reports the results of an empirical, exploratory study which investigates the organization and management of IT supplier relationships in large North American firms. A sample of 518 large corporations was surveyed to determine the degree of formalization of IT supplier-management practices, the extent of discretionary collaborative behavior (DCB) on the part of information technology customers, and the relationship between formalization, DCB and perceived effectiveness in influencing supplier performance. Findings indicate that most companies surveyed continue to manage their supplier relationships in a relatively informal way. Formalization of the supplier management function appears, unsurprisingly, to be a function of the size of the organization and the number of suppliers it utilizes. Relatively high levels of reported discretionary collaboration indicate that IT buyers find value in taking positive, relationship-building action toward their suppliers. Discretionary collaboration appears unrelated to supplier management formalization, company size, or number of suppliers. Thus these results suggest that companies may employ two independent strategies for managing supplier relationships, formal and informal, which both lead to perceived influence over suppliers.