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While most firms think that the purchasing function is important in their operations, many do not consider the function to be a major contributor in most business decision making.[1] For example, a survey of 210 organizations found that although the purchasing function can influence at least 18 key decision issues in the organization, in only 6 of these issues did a majority of the purchasing functions report having total responsibility.[2] This indicates that while purchasing managers can contribute in unique ways to an organization, they are not perceived as influential by other functions and by top management. In view of the critical role the purchasing function can play in providing an organization a sustainable competitive advantage, an effort must be made to understand how purchasing managers can increase their influence in the organization. Although the importance of influence for the purchasing manager has long been recognized, the matter of sources of influence for purchasing has not systematically been analyzed.[3]
The purpose of this article is threefold. First, it explores existing literature on sources and kinds of power and influence in organizations in general. Second, since most of this literature does not deal directly with the purchasing function, this study then analyzes the general understanding of power and influence in the specific context of a purchasing manager. Finally, a set of recommendations is developed for purchasing managers to use in increasing their influence in their organizations.
POWER AND INFLUENCE - A THEORETICAL BACKGROUND
To thoroughly understand the power and influence of purchasing managers, it is helpful to review a theoretical perspective of these concepts. Accordingly, a definition is presented and then characteristics and sources of power are reviewed.
Definition of Power/Influence
Power has been defined as the capability of one social actor to overcome resistance in achieving a desired objective or result.[4] Operationally speaking, power has been defined as "the capacity to effect organizational outcomes."[5] These definitions incorporate the notions of "influence," since one can influence some outcomes or somebody only if one has some kind of power over some people. Hence, many scholars do not find the distinction between power and influence particularly useful.[6] In this discussion, therefore, the terms are used interchangeably.
Characteristics