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On the relationship between purchasing integration and purchasing decision-making speed

Lutz Kaufmann (SCM, WHU, Vallendar, Germany)
Julia Gaeckler (Department of International Business and Supply Management, WHU – Otto Beisheim School of Management, Vallendar, Germany)

International Journal of Physical Distribution & Logistics Management

ISSN: 0960-0035

Article publication date: 7 April 2015

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Abstract

Purpose

First, this study expands knowledge on the strategic decision process dimension decision-making speed by analyzing decision-making speed and two possible antecedents in a purchasing context. Second, it takes an additional step toward clarifying the relationship between strategic and lateral integration. Specifically, the purpose of this paper is to analyze the potential mediating effect of lateral purchasing integration on the relationship between strategic purchasing integration and purchasing decision-making speed.

Design/methodology/approach

This research analyzes survey data of 152 firms from Austria, Germany, and Switzerland using covariance-based structural equation modeling.

Findings

The results of the structural equation model provide strong support for the hypothesized relationships. Strategic purchasing integration drives lateral purchasing integration, which in turn positively influences purchasing decision-making speed.

Research limitations/implications

This study focusses solely on internal types of integration. A logical next step would be to further enrich the model by including external dimensions, such as supplier or customer integration.

Practical implications

This study should help managers gain a better understanding of the relationship between strategic and lateral purchasing integration, highlighting their positive impact on decision-making speed. Decision-making speed is particularly important for companies operating in volatile markets and time-constrained business environments.

Originality/value

This study offers new insights into the theoretical and empirical connection between intra-organizational purchasing integration, unpacked as strategic purchasing integration and lateral purchasing integration, and purchasing decision-making speed. Furthermore, it offers insights into decision-making speed in a purchasing context.

Keywords

Citation

Kaufmann, L. and Gaeckler, J. (2015), "On the relationship between purchasing integration and purchasing decision-making speed", International Journal of Physical Distribution & Logistics Management, Vol. 45 No. 3, pp. 214-236. https://doi.org/10.1108/IJPDLM-05-2013-0150

Publisher

:

Emerald Group Publishing Limited

Copyright © 2015, Emerald Group Publishing Limited

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