Rationality in supplier selection decisions: The effect of the buyer's national task environment |
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| Authors: | Lutz Kaufmann Sebastian Kreft Matthias Ehrgott Felix Reimann |
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| Institution: | 1. Professor of International Business & Supply Management, WHU — Otto Beisheim School of Management, Burgplatz 2, 56179 Vallendar, Germany;2. Associate Researcher Chair of International Business & Supply Management, WHU — Otto Beisheim School of Management, Burgplatz 2, 56179 Vallendar, Germany;3. Assistant Professor of International Business & Supply Management, WHU — Otto Beisheim School of Management, Burgplatz 2, 56179 Vallendar, Germany;4. Assistant Professor of International Business, WHU — Otto Beisheim School of Management, Burgplatz 2, 56179 Vallendar, Germany;1. INVERTO GmbH, Schackstraße 1, 80539 Munich, Germany;2. WHU – Otto Beisheim School of Management, Burgplatz 2, 56179, Vallendar, Germany;1. The Ohio State University, John Glenn School of Public Affairs, 1810 College Road , Columbus, OH 43210, United States;2. The Ohio State University Max Fisher School of Business, 2100 Neil Avenue, Columbus, OH 43210, United States |
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| Abstract: | Our study sheds light on two fundamental questions in supply management: First, does adherence to highly rational decision processes help buyers make better supplier selection decisions? Second, is the influence of procedural rationality on decision effectiveness moderated by buyers’ (differently dynamic) task environments? We empirically test these questions using a sample of 150 supplier selection decisions taken in China and 150 decisions taken in Germany, countries that expose buyers to dynamic decision environments and stable decision environments, respectively. Our findings suggest that the influence of decision process rationality is stable across decision makers’ task environments. Both in China and in Germany, such process rationality is positively related with higher decision quality, and no significant differences in relationship strengths emerge between the two country samples. |
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