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Title of Journal: J Bus Ethics

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Abbravation: Journal of Business Ethics

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Springer Netherlands

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DOI

10.1007/s10511-005-0007-6

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ISSN

1573-0697

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Public Versus Private Sector Procurement Ethics

Authors: Timothy G Hawkins Michael J Gravier Edward H Powley
Publish Date: 2011/05/10
Volume: 103, Issue: 4, Pages: 567-586
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Abstract

The government purchasing market constitutes the largest business sector in the world While marketers would benefit from a deep understanding of both sectors how the two sectors differ in terms of ethics and strategy largely remains unknown The purpose of this research therefore is to explore differences between the forprofit and notforprofit sectors on two critical aspects of businesstobusiness procurement ethics and strategy Using survey data from a sample of 328 procurement professionals in the forprofit and notforprofit sectors key differences are explored Findings suggest that buyers in the forprofit sector are more likely to behave opportunistically Conversely the buyers’ leaders in the notforprofit sector behave more opportunistically and are more willing to turn a blind eye to their subordinate buyers’ opportunistic behaviors In addition key differences in procurement strategy are unveiled suggesting that notforprofit procurement practices have some room for improvement Based on the findings theoretical and managerial implications are drawn and a future research agenda is proposed

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