A comparison of purchasing’s organizational roles and responsibilities in the public and private sector
| DOI | https://doi.org/10.1108/JOPP-03-01-2003-B003 |
| Pages | 57-74 |
| Date | 01 March 2017 |
| Published date | 01 March 2017 |
| Author | P. Fraser Johnson,Michiel R. Leenders,Clifford McCue |
| Subject Matter | Public policy & environmental management,Politics,Public adminstration & management,Government,Economics,Public Finance/economics,Texation/public revenue |
JOURNAL OF PUBLIC PROCUREMENT, VOLUME 3, ISSUE 1, 57-74 2003
A COMPARISON OF PURCHASING’S ORGANIZATIONAL
ROLES AND RESPONSIBILITIES IN THE PUBLIC AND
PRIVATE SECTOR
P. Fraser Johnson, Michiel R. Leenders and Clifford McCue*
ABSTRACT. This research focuses on a comparison of public and private
sector supply organizations in terms of organizational structure, supply chain
responsibilities, the chief purchasing officer (CPO) and reporting line, teaming
and involvement in major organizational activities. A unique opportunity to
identify similarities and differences was presented in 2000 when the National
Institute of Governmental Purchasing Research (NIGP) and Florida Atlantic
University replicated in the public sector a study that the Center for Advanced
Purchasing Studies (CAPS) conducted in the private sector in 1995. Significant
differences and similarities are identified and are discussed in this paper.
INTRODUCTION
The mission of the supply function, whether in the public or private
sector, is to manage the delivery of goods and services through the
supply chain in a cost effective manner. However, it is well recognized
that there are a number of unique aspects in public sector procurement.
For example, public procurement is characterized by high levels of
public disclosure and a heavy reliance on the bid process compared to
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* P. Fraser Johnson, Ph.D., and Michiel R. Leenders, Ph.D., are an Assistant
Professor, and Purchasing Management Association of Canada Professor of
Purchasing Management, respectively, Richard Ivey School of Business, The
University of Western Ontario. Dr. Johnson’s research interests are in
organizational issues in supply and reverse logistics. Dr. Leenders’ research
interests are in organizational issues in supply and supplier development.
Clifford McCue, Ph.D., is an Associate Professor, School of Public
Administration, Florida Atlantic University. His research interest is in public
finance, budgeting and procurement.
Copyright © 2003 by PrAcademics Press
58 JOHNSON, LEENDERS & MCCUE
private sector organizations (Osborne & Pastrik, 1997). Notwithstanding
these differences, there are also many commonalities between public and
private sector groups. Benchmarking by the Center for Advanced
Purchasing Studies (CAPS) found a common trend toward using
automated purchasing systems to process transactions and track
purchasing activities and an increased use of multi-year contracts (Center
for Advanced Purchasing Studies, 1999).
One area of substantial research interest in the public and private
sectors has been an examination of organizational issues in the supply
area. The first large-scale North American research effort concerning
private sector supply organizations was by Fearon (1988), who surveyed
297 large U.S. firms. Since that time, other work by Cavinato (1991),
Pooley and Dunn (1994), Telgen, Zomer and de Boer (1997), Johnson,
Leenders and Fearon (1998a), Johnson, Leenders, and Fearon (1998b),
Harland, Gibbs and Sutton. (2000), and Leenders and Johnson (2000)
have examined a range of organizational factors in private sector
organizations. Fearon’s original 1988 survey was replicated in 1995,
providing the basis for a longitudinal examination of the trends and
changes in large North American supply organizations (Fearon &
Leenders, 1995).
Despite the interest in organizational issues in supply, absent from
the literature is research that identifies organizational similarities and
differences between public and private sector organizations. Moreover,
existing research (e.g., Muller, 1991) has failed to identify meaningful
differences between the two groups. Consequently, the purpose of this
research is to compare large private and public sector North American
purchasing organizations. In doing so, the following research questions
will be addressed:
1. What differences exist between large public and private sector
purchasing organizations with respect to organizational structure
and supply chain responsibilities?
2. To what extent does the use of team-based purchasing activities
differ between private and public sector organizations?
3. What differences exist between the chief purchasing officer’s
background in the public and private sectors?
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