Managing purchasing efficacy through reasoning : an action research on the impact of the TOC logical thinking processes to increase purchasing efficacy.

Abstract

This action research thesis was conducted at a Philippine based entity of a multinational semiconductor corporation. It was motivated by a strong interest in developing a method to increase the human component in purchasing efficacy to facilitate the integration of the purchasing function with other areas of the corporation as well as to gain strategic influence in this business-critical area. Recent research findings have reinforced the importance of uncovering the full strategic potential of the purchasing function within corporations. Literature widely acknowledges that the degree of purchasing efficacy to drive integration is seen as a major success factor in establishing cross functional alignment between the purchasing functions and their related interfaces. This in turn represents the internal dimension of purchasing strategy. Consequently, there is an ongoing practical need, as well as strong research interest, to provide a tool to assist in this integration process. Transformative learning theory argues that learning mainly occurs at the moment when meaning perspectives and meaning schemes change. It further postulates that transformation of meaning is initiated by reinterpreting past experiences and reframing them based on new experiences. Such a learning process is often activated by a “distorting dilemma” where previous meanings are suddenly no longer valid. The theory of constraints provides a framework for problem solving which includes methods to facilitate logical thinking processes and contains a tool named the current reality tree. This tool facilitates interpreting reality through a guided and rules based reasoning process which is based on methods of validity testing to prove assumptions of reality. This thesis is concerned with the increase of purchasing efficacy through a transformative learning process facilitated by the application of the logical thinking processes. Ultimately, the study presents a methodology to increase purchasing efficacy by transforming mind-sets and to increase the level of consciousness by utilizing a logical thinking process framework. However, some limitations, such as a regional and cultural focus on the Philippines, as well as the specific context in which this research was carried out, should be considered. These shortcomings are mentioned to motivate scholars to enter future research avenues in purchasing and supply management, in organizational change processes and in the application of the logical thinking process framework.