Why Empower Your Buyer? Antecedents and Consequences of Buyer Authority

Purpose This paper aims to explore the phenomenon of government buyer authority during source selection – how it is established and why it matters. As sourcing has become more strategic, little is known about whether the degree of buyer empowerment has kept pace. Design/methodology/approach Survey data of 344 source selections is used to measure and model effects via structural equation modeling. Findings The authors find situational and individual-level factors that increase buyer authority during source selection and one factor that diminishes said authority. Key outcomes of buyer authority show how greater empowerment to the buyer results in improved supplier performance and higher customer satisfaction with the supplier. Social implications These findings provide insight into improving the effectiveness and efficiency of public procurement which helps achieve socio-economic goals. Originality/value These findings contribute to the corpus of boundary spanner research and the burgeoning literature on government purchasing by applying insights from power-sensitive boundary spanning theory to explore how effective authority exercises bases of power beyond those embedded in structures, regulations and contracts.