The effect of global leadership on purchasing process outcomes

Abstract

This study examines the effects of transformational and transactional leadership behaviors on cycle time, customer orientation, and relationship commitment in the purchasing process of a multinational services organization. The focus is on the activities and relationships between the international strategic business units (SBUs) and the corporate buying center leadership of the organization. Based on a sample of 346 SBUs and a series of 11 case studies, the results suggest that frequent and infrequent SBU users differ somewhat in the leadership behaviors preferred as determined by the effects on the three purchasing outcomes. The paper concludes with a discussion of the results and the implications for future research endeavors on global leadership in purchasing.