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Purchasing from Minority Small Businesses
Author(s) -
Dollinger Marc J.,
Enz Cathy A.,
Daily Catherine M.
Publication year - 1991
Publication title -
international journal of purchasing and materials management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.75
H-Index - 92
eISSN - 1745-493X
pISSN - 1055-6001
DOI - 10.1111/j.1745-493x.1991.tb00528.x
Subject(s) - purchasing , transaction cost , business , face (sociological concept) , database transaction , marketing , finance , computer science , social science , sociology , programming language
This article employs a transaction costs framework to analyze the problems of Minority Business Enterprise (MBE) purchasing programs. The results from field surveys of small minority firms and corporate purchasing personnel indicate that program participants face differences in transaction costs and in their preferences of ways to overcome these costs. In the majority of situations, minority firms face higher transaction costs than do their corporate purchasing counterparts. The article offers recommendations for improving the performance of MBE purchasing programs, and the policy implications for these programs are discussed.