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Purchasing and the Small Firm

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  • Marc J. Dollinger
  • Michael G. Kolchin

Abstract

A study of 81 small businesses in the Lehigh Valley (Pennsylvania) shows a strong relationship between the boundary spanning activities of the owner/operators of these firms and their profitability. In particular, the results of the study show the importance of purchasing activities to the performance of these firms. In light of the recent literature regarding the need for outside information for successful planning in small businesses, these results are particularly interesting. They indicate the importance of the purchasing function not only in the acquisition of materials, but also in the generation of strategic information. The implications of the results of the study for the improvement of small business operations are discussed.

Suggested Citation

  • Marc J. Dollinger & Michael G. Kolchin, 1985. "Purchasing and the Small Firm," Entrepreneurship Theory and Practice, , vol. 10(3), pages 33-45, January.
    • Handle: RePEc:sae:entthe:v:10:y:1985:i:3:p:33-45
    DOI: 10.1177/104225878501000304
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    References listed on IDEAS

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    1. Richard B. Robinson & John A. Pearce, 1983. "The impact of formalized strategic planning on financial performance in small organizations," Strategic Management Journal, Wiley Blackwell, vol. 4(3), pages 197-207, July.
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