A Case Study Of J Company's Purchasing Process Optimization From The Perspective Of Organizational Routines

In the rapidly changing market economy,business is not static,but is constantly changing with internal and external environment,causing the continuous transformation of corporate identity.However,when enterprises adjust their business,they often neglect the long tail effect because they do not change their identity in time,which brings immeasurable losses to enterprises and even leads to business interruption.In the development and construction of JD Hotel,the first project of integrating "real estate"and "Hotel" business,J company,where the author works,still carries out the original procurement,resulting in the air conditioning procurement brings heavy losses to J Company due to the untimely identity transformation of the enterprise.As for this typical long tail effect,this paper reviews the existing relevant research,and finds that the problem J company encounters is the cost uncontrollable problem which is caused by the failure of organization routines in specific businesses.However,at present,most of the researches on organization routines are based on the macro level of enterprise transformation,such as strategic change,organizational management change,corporate culture etc.,and few studies are carried out from the micro level of corporate business process.This paper takes J company procurement process optimization events as the research line,and studies how to achieve the organization routines update through process optimization to solve cost uncontrollable problem caused by the failure of organization routines from the micro level of specific business.This paper uses interview method to collect case data of J company and summarize the management problems.By using case study method,this article combines management problem phenomenon with Total Cost of Ownership theory(TCO),Organization Convention Theory and Information Asymmetry Theory,and analyzes the causes of management problem though step by step to "peel onions",so that to find path and method to solve the problem.Through the case study of J company,the following points are found:Firstly,the organization routines of enterprises affect the setting of purchasing processes,which in turn affects the total cost of ownership(TCO).In the stage of business integration,when they use the existing organization routines to carry out procurement business,the neglect of the subject attributes and the deviation of cost perception will lead to the invalidation of the routine,and increase the hidden cost,which makes TCO uncontrollable.Secondly,the procurement process adopted by enterprises will affect the quantity and quality of information acquired by agents(suppliers),thus affecting the procurement cost of enterprises.Thirdly,by adjusting cost perception and reducing information asymmetry,the company's purchasing business process will be optimized to update organization routines,so that the organization routines can be matched with the integrated business of enterprises,so as to ensure that the purchasing business objectives of low total cost of ownership can be achieved.This study focuses on the micro-level business processes,provides an operable analysis and solution path for enterprises when they encounter the failure of organization routines in business convergence,and opens the "black box" of enterprise organization routines in specific business processes.It provides research basis and ideas for future researchers.