By George Kelley, Elizabeth Ann Regan, C. Stephen Hunt
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Extra resources for Implementation of a Network Print Management System: Lessons Learned
Moreover, there were fears that such large sales might be beyond the scope of the domestic institutional investors to finance with ease. One solution was to attract the interest of small investors in the privatisation stock. Arguably however, effective corporate governance is better achieved by having a small number of large shareholders. Unlike small shareholders, larger investors have more motivation to monitor and change the behaviour of management to ensure the efficient use of the enterprise’s resources.
Bailey, 1973; Swann, 1988). However, regulation may have implications for the restructuring of supply chains. In so far as efficiency incentives are reduced by continued state regulation, the expectation would be that there would be fewer innovations in purchasing and supply practices. Conclusions If privatisation is to operate as intended and improve organisational performance, then changes must occur in the way that the business is managed and organised so as to achieve coherence or a ‘fit’ between the new external environment and the internal organisation.
Indicators used to test how ‘professional’ the function has become are: the existence of a formal purchasing and supply strategy, the use of mission statements, and the use of various purchasing tools and techniques ranging from highly reactive practices such as organising bids to more sophisticated techniques such as purchase price cost analysis and strategic source planning. How the performance of the purchasing department was measured and how this had changed since privatisation were also investigated.