Industrial Procurement Practices of Taiwanese Firms in the Chinese Market

This paper analyses the industrial procurement practices of Taiwanese firms in the Chinese market. It is based on data collected during the months of September through December 1995 and covers 95 firms currently doing business in this market. Industrial procurement practices of these firms were studied in New Task buying situations (Robinson, Faris, and Wind, 1967) and relate specifically to the following factors: (a) the role of purchasing managers in the purchase decision process for equipment and component parts, (b) the importance of different functional departments in the decision process, (c) the importance of technical, commercial, and social factors in the choice of a supplier, and (d) the impact of environmental factors such as market structure, economic, technology, and culture on the purchase decision process of buyers.