Examining exchange relationships among high‐tech firms in the evolving global economy

Abstract

PurposeThis paper intends to further understanding of the world marketplace by examining the procurement practices of high‐tech suppliers across several countries in Central and Eastern Europe and in the USA. In particular, this examination will focus on the extent to which the smaller and less developed countries of Eastern Europe utilize IT procurement as an integral part of their purchasing strategy.Design/methodology/approachExploratory qualitative interviews conducted with purchasing decision makers across various high‐tech industries in Eastern Europe are compared with those in Central Europe and the USA.FindingsThe findings suggest that information technology is perceived as being less valuable by European firms and is utilized to a lesser degree. In addition, multinational companies operating in Eastern Europe appear to be focused on developing the product quality and operational efficiency of local Eastern European suppliers and less concerned about facilitating their adoption of IT procurement systems.Research limitations/implicationsThe findings are consistent with past research and theory development in the area of relationship marketing. Although one can argue with whether buyer perceptions of electronic procurement are accurate, their reasons for adopting or not adopting this technology center on reducing transaction costs, reducing uncertainty, and trust concerns. Interestingly, findings suggest that within the high‐tech sectors in Eastern Europe very little commerce is taking place electronically.Practical implicationsThe findings suggest that organizations buying globally need to pay close attention to the business culture from which they intend to source. This is important for a large number of well‐researched reasons; however, the study expands on these by suggesting that various markets have differing exposure, knowledge, and comfort levels with electronic procurement.Originality/valueAs with most qualitative studies, evidence was found that supports many of the established and evolving theories of buyer‐seller relationships as well as a few more surprising insights. For example, the prevalence of the desire for local suppliers by global multinationals and the extent to which they were “developing” these suppliers form an interesting area deserving further research attention. The lack of interest in IT procurement systems among the firms interviewed was also surprising.