Use of Organizational Design Features in Purchasing

Due to abolition of the Multi Fiber Agreements, supply chain management has become a crucial issue in the garment industry in which purchasing plays a major role. Therefore, this study was conducted to identify the extent of the use of organizational design features in purchasing and their influence on the purchasing performance of 40 garment manufacturing firms. Twenty-three organizational design features in 3 broad categories were used to group the firms. Purchasing performance was measured by using 5 factors. Analysis revealed 2 significantly different groups in terms of 19 organizational design features. Group One consisted of small firms whereas the other consisted of larger firms. The extent of use of all categories of organizational design features was greater in Group Two compared to Group One. Firms that used greater extent of organizational design features achieved better performance in purchasing.