The Significance Of International Purchasing On The Organization Productivity
[A CASE STUDY OF DOYIN INVESTMENT COMPANY]

According to the Figure 2, international purchasing is the sourcing activity with the lowest degrees of control and involvement. The buyers and suppliers are independent entities that interchange materials for money. Moreover, the arrangement may vary in different ways including whether the transaction is directly between the buyer and producer or through third parties and whether the buyers and suppliers choose a long-term collaboration.
In international subcontracting, the buyer has an increased degree of control on suppliers’ activities and moreover is interested in developing collaborative relationships. The buying company may provide clear product specifications, technical assistance, physical equipment, raw materials.
2.2    THEORETICAL FRAMEWORK
    Gonzales Padron et al (2008) theories are based on a contingency approach, focusing on the fit between a firm’s organization and its environment, the contingency approach apply to examine the relationships between organizational culture, learning, entrepreneurial, innovation and purchasing outcomes in different ethical climates. Furthermore, the cluster approach deals with the advantages and disadvantages of having local or global suppliers to explain the firms advantages by reducing sourcing costs or revealing better sourcing markets, authors make use of comparative or competitive advantage models (Kamann & Va Nieulande 2010, Ruamsook et al 2007).
    The transaction cost approach, which is dominating in microeconomic theories, focuses on a reduction of transaction costs when sourcing abroad (Shook et al 2010). Among systems theories, network theory is most prominent. Network theory draws on the firm’s advantages which are generated from being a control part of a supplier network and which improve the firms purchasing performance. The network theory is used especially when dealing with the supply management. Besides these most common theories several authors apply other approaches to explain international sourcing phenomena such as grounded theory, inventory or social capital theory, fuzzy set theory or resource dependence theory (e.g. Agenda 2006; Platts & Song, 2010: Weber et al, 2011). We also find an increased usage of “intellectual eclectic” approaches (i.e. combining different, generally in compatible theoretical approaches) which was also highlighted in the review by Chicksand et al (2012) scholars mentioned one of the above popular theoretical approaches, they seem to not link their own research to this theory well (Chickson et al 2012).
    In sum, there is no major focus visible on single theory and the use of business paradigms, as called for Quintens et al (2012) is still scarce.