Date of Award

6-2018

Degree Type

Dissertation

Degree Name

Doctor of Business Administration (DBA)

First Advisor

Nezih Altay, PhD

Second Advisor

Jaclyn Jenssen, PhD

Third Advisor

Grace Lemmon, PhD

Abstract

As organizations look for more efficient ways to grow and optimize their supplier network to meet demands, the sourcing process must be streamlined through social networking. Kraljic’s (1983) purchasing portfolio approach argues that different types of purchases need different sourcing strategies. This study extends beyond this strategy by introducing a novel approach of social networking as a mechanism to amplify cost reduction. Through the theoretical underpinning of Transaction Cost Theory, this study builds upon the use of social networking to establish the foundation for future research in this area. In this study, existing and former Purchasing Managers (Sourcing Managers, Procurement Managers, or Buyers), responded to an online survey about their experience with purchasing in the context of three areas: supply market analysis, social networking, and cost reduction. Results revealed that Purchasing Managers use social networking as a strategic sourcing approach to find competitive suppliers. The strategic sourcing approach is identified as supply market analysis, which is the sourcing or supplier research aspect of the 7-step strategic sourcing methodology.

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