An Internal, Demand-Side Approach Toward Implementing Strategic Sourcing: Political, Legal, and Economic Considerations

Abstract

A commonly cited criticism of the DoD is inefficiency in its acquisition process that leads to a high potential for waste. The purpose of this study is to explore whether the DoD's institutional setting and related bureaucratic structure prohibit leaders and policymakers from effectively implementing private sector best practices related to strategic sourcing, especially demand management. Demand management requires an organizational mindset supporting the governance of production and consumption within a commodity group. A qualitative, case study research methodology was used to explore whether the DoD's institutional framework permitted the utilization of strategic sourcing processes, such as demand management. Gortner, Mahler, and Nicholson's theoretical framework and related argument that public and private sector organizations differ from each other according to three distinct mediums (legal, economic, and political) was applied. Interview data and document artifacts were fractured and coded, then grouped into categories using a modified grounded theory strategy. Key findings suggest that the DoD's current acquisition structure permits a limited application of demand management and the private sector's key success factors given certain political, legal, and economic modifications.