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Article
Publication date: 5 August 2019

Meow Yee Foo, Kanagi Kanapathy, Suhaiza Zailani and Mohd Rizaimy Shaharudin

The purpose of this paper is to ascertain the green-purchasing capabilities required to ensure the successful implementation of green-purchasing practices under the forces…

Abstract

Purpose

The purpose of this paper is to ascertain the green-purchasing capabilities required to ensure the successful implementation of green-purchasing practices under the forces of institutional pressure. Specifically, this paper explores the green-purchasing capabilities of buyer firms under the influence of institutional pressures in supplier selection, development, collaboration and evaluation in support of environmental purchasing.

Design/methodology/approach

Questionnaire survey method was used to gather data from 163 ISO 14001-certified manufacturing firms in Malaysia. Partial least squares was used for hypotheses testing.

Findings

Green-purchasing capabilities, such as manufacturing, financial, intraorganisational and integration capabilities, have a significant positive effects on green-purchasing practices. However, innovation capabilities have no significant effect on green-purchasing practices. Regulation, customer and competitor pressure positively moderate the relationships between green manufacturing capabilities and practices.

Practical implications

The paper highlights the importance of green-purchasing capabilities in enhancing the green-purchasing practices of firms. The findings that pertain to moderating effect could be used to assist policy makers, particularly in setting appropriate policies and strategies to improve green purchasing.

Originality/value

Although more studies on green purchasing have been conducted in recent years, issues, such as the effect of green-purchasing capabilities on green-purchasing practices, are still unspecified. Besides, this study considers institutional pressure as the moderator when a model is constructed to exemplify the relationship between green-purchasing capabilities and practices.

Details

Management of Environmental Quality: An International Journal, vol. 30 no. 5
Type: Research Article
ISSN: 1477-7835

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Article
Publication date: 15 March 2013

Ahmed Doha, Ajay Das and Mark Pagell

The purpose of this study is twofold. First, to examine the contingent role of the product life cycle on the efficacy of purchasing practices. Second, to use the results…

Abstract

Purpose

The purpose of this study is twofold. First, to examine the contingent role of the product life cycle on the efficacy of purchasing practices. Second, to use the results of the first investigation to explore the adequacy of the profit‐maximization framework for explaining purchasing decision making. This second investigation is motivated by growing evidence on the role of institutional factors in explaining supply chain management practices.

Design/methodology/approach

Survey data from a sample of North American manufacturing firms, across four standard industry sectors, are analysed using ANOVA and linear regression, to examine the hypotheses.

Findings

The results indicate that product life cycle has a contingent effect on the efficacy of some purchasing practices but not on others. Interestingly, the results suggest that the profit‐maximization framework is capable of explaining only some purchasing decisions but not others; firms adopt certain purchasing practices in certain product life cycle stages, even when these practices have no apparent effect on purchasing performance. This raises a need for an alternative framework to profit‐maximization, to better understand purchasing decision making.

Originality/value

The paper pioneers an empirical examination of how product life cycle moderates the relationship between purchasing practices and purchasing performance. The paper presents novel insights on the inadequacy of the rational profit‐maximization framework to explain purchasing decision making. Furthermore, the paper presents testable propositions on the role of institutional factors that are potentially driving purchasing decision making in managing the product life cycle contingency.

Details

International Journal of Operations & Production Management, vol. 33 no. 4
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 20 November 2017

Javier Alfonso Rodríguez-Escobar and Javier González-Benito

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…

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.

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Article
Publication date: 3 July 2017

Frank Wiengarten and Eamonn Ambrose

The purpose of this paper is to investigate the extent to which the geographical location of and thus the geographical distance between buyer and supplier impact on the…

Abstract

Purpose

The purpose of this paper is to investigate the extent to which the geographical location of and thus the geographical distance between buyer and supplier impact on the efficacy of purchasing practices (i.e. strategic purchasing management, tactical purchasing management, relational purchasing management) in terms of operational performance.

Design/methodology/approach

The authors utilise cross-country data collected through the International Purchasing Survey group across a variety of countries and industry sectors. The authors conduct exploratory factor analysis to assess construct validity and regression analysis to test the varying effects of purchasing practices on operational performance. The authors split the sample to compare potential differences in the efficacy of purchasing practices between buyers and suppliers through geographical characteristics.

Findings

The results indicate that the efficacy of purchasing practices does indeed vary depending on differences in geographical location. Specifically, the authors identify that in cases where the buyer and supplier are located in the same country tactical and relational purchasing tools have a positive impact on operational performance. However, in cases where they are situated in different countries none of the purchasing tools seems to significantly improve operational performance.

Originality/value

Research that has taken a cross-country perspective on the efficacy of supply chain practices is surprisingly sparse. Since most supply chains are becoming more and more global it is important to consider the geographical location of the supply chain members when assessing the performance benefits of supply chain practices such as purchasing tools. Thus, the authors introduce and test the concept of geographical distance on the efficacy of purchasing practices at the dyadic level. To test the implications of geographical distance for purchasing practices the authors use a large-scale cross-country survey.

Details

International Journal of Operations & Production Management, vol. 37 no. 7
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 12 January 2010

M.L. Emiliani

The purpose of this paper is to examine the key recommendations of early practitioners of purchasing management regarding supplier relationships and how policies and…

Abstract

Purpose

The purpose of this paper is to examine the key recommendations of early practitioners of purchasing management regarding supplier relationships and how policies and practices for obtaining lower unit prices affect buyer‐seller relationships.

Design/methodology/approach

The paper reviews the seven earliest books published on purchasing in the period 1915‐1940, and contrasts with common purchasing practices currently used by large corporations.

Findings

The logical, practical recommendations made by purchasing managers in the early 1900s differ markedly from the imprudent practices used by the managers of most large corporations today.

Research limitations/implications

Research is limited by the inability to speak to deceased authors/purchasing practitioners cited to gain their venerable insights on the longevity of value‐destroying dysfunctional purchasing practices.

Practical implications

This paper shows how the common purchasing performance metric and the zero‐sum policies and practices used to obtain lower unit prices degrade buyer‐seller relationships and contribute to regression in the practice of purchasing and supply chain management, as well as in business overall.

Originality/value

This paper will be helpful to academics who study purchasing history as well as current purchasing and supplier relationship management practices. Practitioners will benefit by becoming reacquainted with sensible practices long known to result in more favorable outcomes.

Details

Journal of Management History, vol. 16 no. 1
Type: Research Article
ISSN: 1751-1348

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Article
Publication date: 28 December 2020

Suhas Suresh Ambekar, Umesh Deshmukh and Manoj Hudnurkar

The study aims to establish an impact of supplier relationship and information and communication technology through purchasing practices on firm performance.

Abstract

Purpose

The study aims to establish an impact of supplier relationship and information and communication technology through purchasing practices on firm performance.

Design/methodology/approach

Review of relevant literature resulted in constructs, namely, supplier relationships, information and communication technology, purchasing practices and firm performance. A survey of 179 manufacturing companies through structured questionnaire was conducted. The responses were analysed through structural equation modelling using the partial least squares method.

Findings

It is observed that the firm performance is directly influenced by purchasing practices and indirectly by supplier relationships and information technology. The use of information technology in materials management affects supplier relationships and purchasing practices both.

Practical implications

The study provides a model for purchasing practitioners by highlighting the importance of supplier relationship management. Though the firms are running after improving technology, it can only affect firm performance through proper purchasing practices.

Originality/value

The study provides empirical evidence to the practical notions that exist in purchasing practitioners.

Details

International Journal of Innovation Science, vol. 13 no. 1
Type: Research Article
ISSN: 1757-2223

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Article
Publication date: 1 August 2002

Javier González‐Benito

JIT purchasing, like many other trends in supply management, is not applicable to just any circumstances; rather, its implementation responds to particular factors…

Abstract

JIT purchasing, like many other trends in supply management, is not applicable to just any circumstances; rather, its implementation responds to particular factors. Focusing on the characteristics of the purchased products, this paper contributes to identifying some of these factors. Seven variables – the volume, specificity, technological complexity, essentiality, fragility, variability and economic value of procured products – have been analysed and their effects on JIT purchasing implementation have been tested over a sample of 152 Spanish auto component manufacturers. In order to specify such effects, four dimensions of JIT purchasing have been distinguished: operational, relational, involvement, and quality practices. Results show that companies do not pursue the minimisation of inventory maintenance costs, but they seem to be motivated by objectives such as quality, responsiveness, innovation or minimisation of circulating capital. Thus, operational JIT purchasing practices are mainly applied to fragile and expensive products, whereas the other complementary practices are applied to specific, technologically complex and essential purchases.

Details

International Journal of Operations & Production Management, vol. 22 no. 8
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 1 July 2004

Cristóbal Sánchez‐Rodríguez and Ángel R. Martínez‐Lorente

The topic of this research focuses on firm's perceived implementation of quality management practices in the purchasing function. More specifically, this paper describes…

Abstract

The topic of this research focuses on firm's perceived implementation of quality management practices in the purchasing function. More specifically, this paper describes an exploratory research effort to analyze and classify quality management practices in purchasing and assesses the relationships of these practices with measurements of a firm purchasing's operational performance (POP), internal customer satisfaction and business performance. The results reported in this study are based on a field survey consisting of responses gathered from 306 purchasing managers within the Spanish manufacturing industry. The assessment of the relationships among quality management practices in purchasing, POP, internal customer satisfaction and business performance is carried out using bivariate correlation analysis.

Details

International Journal of Operations & Production Management, vol. 24 no. 7
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 7 May 2019

Aki Jääskeläinen and Jussi Heikkilä

How do purchasing and supply management (PSM) practices create value for the business customers of a focal company? The purpose of this study is to approach the question…

Abstract

Purpose

How do purchasing and supply management (PSM) practices create value for the business customers of a focal company? The purpose of this study is to approach the question by investigating the delivery of value over three tiers in the supply chain, that is, from suppliers to the focal company, and further to the focal company’s customers following value chain logic.

Design/methodology/approach

The study is carried out as a qualitative interview study in four focal companies operating in business-to-business markets. A total of 32 interviews are conducted targeted to managers and directors of sales and marketing, purchasing, product/service development and business units.

Findings

The study unveils the characteristics and interplay of supplier-oriented and cross-functional PSM practices in customer value creation. The findings indicate that cross-functional integration between purchasing and the other functions of a focal firm is most beneficial in improving supply flexibility to fulfill customer preferences, identifying new supplier offerings for the customer and facilitating time-to-market of new products.

Research limitations/implications

This study enhances managers’ understanding of the characteristics of the non-financial benefits of purchasing and the role of PSM practices in customer value creation and business success. The findings are indicative of potentially successful practices in the contexts studied.

Originality/value

This study contributes to the supply chain management literature on the benefits of the purchasing function by highlighting the value created for the customer of a focal company. It also extends the discussion in the supply chain management literature on customer value creating interaction processes in business relationships by focusing on PSM practices.

Details

Supply Chain Management: An International Journal, vol. 24 no. 3
Type: Research Article
ISSN: 1359-8546

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Article
Publication date: 1 April 2005

David Hemsworth, Cristóbal Sánchez‐Rodríguez and Bruce Bidgood

Many studies claim that the implementation of quality management practices and specific information systems can help organizations to improve performance. The objective of…

Abstract

Purpose

Many studies claim that the implementation of quality management practices and specific information systems can help organizations to improve performance. The objective of this article is to provide insights into current quality management and information systems theory and practice in the purchasing function and their impact on purchasing performance.

Design/methodology/approach

Hypotheses derived from the key features of quality management practices in purchasing (QMPP) and related information systems (IS) practices presented by previous authors are tested using Structural Equation Modelling through field research on a sample of 306 manufacturing companies in Spain.

Findings

Findings from this study indicate that there is significant evidence to support the hypothesized model in which QMPP has a direct impact on related IS practices and purchasing performance, as well as an indirect impact on purchasing performance mediated through IS.

Research limitations/implications

Use of a single key informant is a possible limitation as opposed to information directly obtained from actual suppliers and internal customers. Also a more stringent test of the relationship between QMPP, IS and purchasing performance requires a more protracted time‐span rather than a singlular point in time. Finally, future research could include SRM, ERP, MRP, etc. in the purchasing department

Practical implications

A survey of QMPP and IS practices in manufacturing suggests how firms and other organisations should focus their investments to improve purchasing performance.

Originality/value

While many researchers have studied information systems and total quality management operations strategies individually, the relationship between the adoption of quality management practices in purchasing and purchasing‐related information systems and QMPP's effect on purchasing performance has not yet been analyzed.

Details

Journal of Enterprise Information Management, vol. 18 no. 2
Type: Research Article
ISSN: 1741-0398

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