Identifying and mitigating maverick spend

Sureel S. Sheth, Terry P. Harrison, Richard D. Elmore

Research output: Contribution to journalArticlepeer-review

Abstract

Purchasing Services at the Pennsylvania State University is tasked to support efficient procurement of goods, materials and services across the University. Purchasing Services attempts to capture economies of scale using organization-wide framework agreements, however, this results in various forms of organizational misalignment, which includes purchasing off-contract commonly known as “maverick spend”. We describe various research efforts to address the challenges in centralization initiatives and maverick spending. 1) identify proportion of maverick spend, 2) identify root-causes of maverick spending behavior, 3) recommend mitigation strategies to Purchasing Services and 4) provide generalized results for other organizations to assess and mitigate maverick spending.

Original languageEnglish (US)
Pages (from-to)219-237
Number of pages19
JournalInternational Journal of Operations and Quantitative Management
Volume25
Issue number4
DOIs
StatePublished - Dec 2019

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Strategy and Management
  • Management Science and Operations Research
  • Information Systems and Management
  • Management of Technology and Innovation

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