The effect of strategic alignment on purchasing management
Abstract
Purpose
This research aims to establish the role of the purchasing function’s strategic alignment in the relationship between well-established practices and performance in that function. It is argued that the strategic alignment of purchasing may have effects (direct, mediating and moderating effects) on the purchasing function’s operating performance.
Design/methodology/approach
The hypotheses derived from key studies about strategic and advanced purchasing practices are tested with data from 156 industrial companies using structural equation modelling methodology.
Findings
The results suggest that the effect of strategic alignment on the role of purchasing consists of mediated effects on purchasing performance through implementation of certain advanced practices. It was also concluded that strategic alignment – as well as the implementation of these advanced purchasing practices – fosters the implementation of differentiation strategies based on quality, dependability and flexibility rather than on the implementation of cost leadership strategies.
Research limitations/implications
Although it is a common practice in operations management research, the use of perceptual measures obtained from a single informant constitutes a noteworthy limitation. Future research should make an effort to combine different sources of information and to identify and use more objective indicators.
Practical implications
Top managers should take into account the need to involve the purchasing function in the firm’s strategic planning process.
Originality/value
The results not only confirm findings from previous literature as to the purchasing function’s strategic relevance but also help clarify the mechanisms that make this integration important.
Keywords
Acknowledgements
This research was funded by the Spanish Government (Ministerio de Economía y Competitividad) through research projects ECO2013-47280-R and ECO2016-76876-R. Aid was also received from the research projects SA083A12-1 and SA027U16 financed by the Consejería de Educación de la Junta de Castilla y León (Regional Ministry of Education of Castile and Leon) and FEDER funds.
Citation
Rodríguez-Escobar, J.A. and González-Benito, J. (2017), "The effect of strategic alignment on purchasing management", Management Research Review, Vol. 40 No. 11, pp. 1175-1200. https://doi.org/10.1108/MRR-02-2017-0042
Publisher
:Emerald Publishing Limited
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