An empirical test of contributing factors to different forms of maverick buying
Maverick buying is the non-compliant, off-contract buying of goods and services, for which an established procurement process is in place based on pre-negotiated contracts with selected suppliers. The phenomenon is common in organizations using organization-wide frame agreements. Maverick buying prevents the full utilization of volume discounts negotiated, and also raises unnecessary process costs. This paper focuses on three types of maverick buying drawn from previous literature. Survey data on Finnish governmental procurement is used to test whether characteristics of users and their work contexts, drawn from literature in organizational behavior, affect the reasons for engaging in maverick buying. The results provide guidance on how different types of maverick buying in an organization can be reduced. Specifically, it is shown that all types of maverick buying can be reduced by limiting the task autonomy of the buyers. Additionally, different types of training can help prevent the behavior. Investing in reward and sanction systems, however, does not appear to be helpful in reducing the three types of maverick buying tested for in this study.
|Keywords||Frame agreements, Maverick buying, Organizational behavior, Purchasing|
|Persistent URL||dx.doi.org/10.1016/j.pursup.2011.05.001, hdl.handle.net/1765/31178|
|Journal||Journal of Purchasing & Supply Management|
Karjalainen, K, & van Raaij, E.M. (2011). An empirical test of contributing factors to different forms of maverick buying. Journal of Purchasing & Supply Management, 17(3), 185–197. doi:10.1016/j.pursup.2011.05.001