The use of buying committees by Chinese retailers: The effects of environment and strategy upon structure

Using an organizational theory framework, this study investigates the use of buying committees by Chinese retailers in the value chain. We conducted a survey of 100 Chinese retailers to determine the effects of the environment and firm strategy upon firm structure. Results from the study revealed that market orientation was inversely related to economic development as well as firm size; market orientation does not predict the use of buying committees; the environmental factors of ownership type and economic development predict buying committee use, but market orientation does not. We offer conclusions and implications for suppliers and other members of the value chain.