1.6 RESEARCH QUESTIONS
In this chapter the research questions will be answered one by one, suggestions for the future research will also be given.
1. What are the main driving forces and challenges for companies conducting international purchasing?
The
main driving forces for conducting internal purchasing are; cost,
quality, efficiency, increase competition in the domestic market and cut
lead times. Corporate Social Responsibility (CSR) ad sustainability can
also be regarded as driving forces since purchasing directly from
suppliers instead of using a reseller could create control over the
supply chain. There is a shift going on regarding the driving forces for
internal purchasing.
Previously, cost focus has been absolute
dominant. Now it has replaced more and more by other factors such as
quality and Corporate Social Responsibility (SCR). The challenges
connected to international purchasing are language barriers, cultural
differences, documentations, transforming norms and standards, trade
barriers, imposition of tariff-quotas, exchange rates caution, finding
the best suppliers, potential resistance, CSR and sustainability issues
and logistics.
2. What factors determine which purchasing markets that are relevant?
The
factors determine relevant purchasing markets are varying depending on
industry. in general the most important factors are, cost-level,
capability to produce the required products, infrastructure and
stability on the market. CSR (Corporate Social Responsibility) and
sustainability issues are getting increasingly important and will affect
these decisions even more in the future.
3. How are companies affected by CSR (Corporate Social Responsibility) in their work with international purchasing?
The
importance of CSR growing and it definitely affects companies in their
work with international purchasing especially, it affects how they work
with suppliers. CSR have made it increasingly important to work more
together with the suppliers and by that increase the suppliers knowledge
about these issues, strengthens supplier relationship could also have
positive effects on cost, quality and efficiency. Companies are of
course also affected by the challenges connected to CSR, such as the
definition and “how far should you go†problem.
4. How could NCC handle driving forces, challenges and Corporate Social Responsibility (CSR).
Based
on their own capacity and their customer’s requirements they need to
prioritize, it is not possible to get anything, low price, high quality
and full traceability throughout the supply chain is a tough equation to
solve.
1.7 FORMULATION OF RESEARCH HYPOTHESIS
The following hypotheses were tested to guide the study.
Hypothesis One
Ho1: There is no challenge to international purchasing with main strategic options available for the purchasers.
Hi1: There is challenge to international purchasing with main strategic options available for the purchasers.
Hypothesis Two
Ho2: Supplier selection criteria are not important in the international context.
Hi2: Supplier selection criteria are important in the international context.
Hypothesis Three
Ho3: International purchasing has no significant effect on small scale industry.
Hi3: International purchasing has no significant effect on small scale industry.