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Dissertation Defense


Candidate: Gwendolyn Whitfield

Degree of: Doctor of Philosophy

Department: Department of Sociology

Title: Culture and the Effectiveness of Supplier Diversity Programs: A Test of Predictors

Committee:
Dr. Tom VanValey, Chair
Dr. David Hartmann
Dr. Robert Landeros
Dr. Subash Sonnad

Date: Tuesday, July 29, 2003, 11:00 a.m. - 1:00 p.m.
2526 Sangren

Abstract: Increased globalization and diversity has brought with it unique interdependencies. As we experience demographical shifts unlike any other in U.S. history, the growth rate of minority-owned businesses represents unprecedented opportunity. According to the Minority Business Development Agency, the minority population will represent 37.4 percent of the total U.S. population by the year 2020, and will yield purchasing power of $3 trillion. Moreover, it is estimated that between the years 2000 and 2050 the majority of new business starts will originate in the minority business community (U.S. Small Business Administration 1994). Minority-owned firms grew from 7 percent of all U.S. firms to 15 percent between 1982 and 1997. These key environmental changes have significant implications for the corporate supply chain, and relationships with minority suppliers have become increasingly important.
Supplier diversity programs have been used by firms for over 30 years, yet few minority suppliers have found their way into mainstream processes, and many programs have not succeeded as planned. Supplier diversity is defined as a proactive business process that seeks to provide all suppliers equal access to supply management opportunities (NAPM, InfoEdge 2001). One research study found major impediments in supplier diversity programs (Dollinger & Dailey 1989). For example, minority suppliers face higher transaction costs, experience difficulty in dealing with complex bureaucracy, and sometimes had to deal in a hostile environment. Other studies have found major problems with communication (Krause et. al 1999; Kauffman 2001) and commitment (Krause et. al 1999; Carter et. al 1999). Past research has also emphasized the important role of corporate culture for implementing supplier diversity programs (Min 1999; Carter et. al 1999).
This dissertation project will examine the relationship between corporate culture and supplier diversity effectiveness. The study will examine how attitudes toward diversity are embedded in firms and how these attitudes influence spending levels with diverse suppliers. The general hypoTheses is that organizations that have constructive cultures for diversity will have higher levels of spending in supplier diversity programs. The research will be conducted using a sample of 112 buyers from 12 units in a large heavy equipment manufacturing company. This project involves collecting attitudinal data from the sample using an Internet-mediated survey questionnaire. Effectiveness data will be collected using semi-structured interviewing and archival research. This research project will build on the findings of previous studies, and will provide additional insight about how organizational culture influences the effectiveness of supplier diversity programs.

 



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