ah&z Business Consulting, Munich/Duesseldorf, Neuturmstrasse 5, D-80331 München, Germany
bInstitut für Unternehmensführung und Organisation, Leibniz University of Hanover, Königsworther Platz 1, D-30167 Hannover, Germany
Abstract:
The relationship between the development level a purchasing organisation has reached—maturity—and its impact on the performance of a firm has received only limited attention until now. We conducted extensive purchasing audits using a comprehensive tool to assess firms’ maturity level. These firms’ performance was then measured by their success in a purchasing cost-reduction programme. The results showed a highly significant relationship between purchasing's maturity level and cost-reduction results. Somewhat counter-intuitively, larger saving potential was identified in more developed firms. This finding may be explained by a new concept called “purchasing absorptive capacity”. If an organisation's maturity is too low, the introduction of best practices, such as an innovative cost-reduction method, may fail.