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Article
Publication date: 7 June 2021

Melek Akın Ateş and Huriye Memiş

This paper aims to empirically examine the moderating role of strategic purchasing on the relationship between supply base complexity (SBC) and purchasing performance.

Abstract

Purpose

This paper aims to empirically examine the moderating role of strategic purchasing on the relationship between supply base complexity (SBC) and purchasing performance.

Design/methodology/approach

Survey data were collected from 209 firms listed in the Capital Top 500 Firms of Turkey. Measurement properties were assessed via confirmatory factor analysis, and the conceptual model was tested via hierarchical regression analysis. A supplementary analysis based on 14 semi-structured interviews was conducted to provide further insights on the survey findings.

Findings

Regarding structural SBC, the results suggest that horizontal complexity and supplier interaction improve purchasing performance, but only in firms with high strategic purchasing. By contrast, spatial complexity reduces purchasing performance in firms with high strategic purchasing, while supplier differentiation does not have any effect. Regarding dynamic SBC, the results show that both delivery complexity and supplier instability reduce purchasing performance when firms have low strategic purchasing. Interviews further suggest that firms with high strategic purchasing leverage the positive effects and mitigate the negative effects of SBC by having a long-term focus, considering multiple performance criteria and adopting advanced purchasing practices.

Practical implications

In contrast to what is widely posited in the existing literature, the nuanced findings of this study reveal that complexity is not always detrimental. The results suggest that practitioners should aim for high levels of strategic purchasing to suppress the negative effects of SBC while leveraging its benefits.

Originality/value

By investigating the contingency role of strategic purchasing, this study provides novel insights into the under-investigated issue of how to best “manage” SBC.

Details

International Journal of Operations & Production Management, vol. 41 no. 6
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 3 December 2018

Britta Søgaard, Heather Dawn Skipworth, Michael Bourlakis, Carlos Mena and Richard Wilding

This paper aims to explore how purchasing could respond to disruptive technologies by examining the assumptions underlying purchasing strategic alignment and purchasing

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Abstract

Purpose

This paper aims to explore how purchasing could respond to disruptive technologies by examining the assumptions underlying purchasing strategic alignment and purchasing maturity through a contingency lens.

Design/methodology/approach

This study uses a systematic review across purchasing maturity and purchasing strategic alignment literature. This is supplemented with exploratory case studies to include practitioners’ views.

Findings

This research demonstrates that neither purchasing maturity nor purchasing strategic alignment are suitable approaches to respond to disruptive technologies. Purchasing maturity does not allow purchasing managers to select relevant practices. It also shows no consideration of any contingencies, which practitioners highlight as important for the selection of practices. Purchasing strategic alignment includes the company strategy as a contingency but does not provide any practices to choose from. It does not include any other contextual contingencies considered important by practitioners. The findings indicate that linking the two research streams may provide a more suitable approach to responding to disruptive technologies.

Research limitations/implications

This research demonstrates the requirement to develop a new approach to responding to disruptive technologies, by linking purchasing maturity and purchasing strategic alignment to contextual contingencies. This is a currently unexplored approach in academic literature, which refutes the generally accepted premise that higher maturity unilaterally supports a better positioning towards technological disruption. This research also highlights a requirement for practitioners to shift their approach to “best practices”.

Originality/value

This is the first research to systematically review the relationships between purchasing maturity and purchasing strategic alignment. It adds to contingency theory by suggesting that purchasing maturity models can support the achievement of strategic alignment. Also, future research directions are suggested to explore these relationships.

Details

Supply Chain Management: An International Journal, vol. 24 no. 1
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 13 March 2009

Cristóbal Sánchez‐Rodríguez

This purpose of this paper is to introduce strategic purchasing (SP) and supplier development (SD) as constructs that could have the potential to contribute to the success…

4412

Abstract

Purpose

This purpose of this paper is to introduce strategic purchasing (SP) and supplier development (SD) as constructs that could have the potential to contribute to the success of relationship marketing efforts. Based on the relational view of the firm, the authors propose that SP is an antecedent of SD practices and can create value for the buying firm in terms of better purchasing performance.

Design/methodology/approach

Hypotheses derived from the key features of SP and SD practices are tested using structural equation modeling 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 SP exerts a direct influence on SD practices and purchasing performance, as well as an indirect impact on purchasing performance mediated through SD.

Research limitations/implications

Further research is necessary to increase our understanding of a buyer's strategic purchasing and supplier development practices and more specifically how suppliers could develop a supporting environment to facilitate the strategic alignment of these two concepts. The limitations of the survey are also discussed.

Practical implications

The findings from this study provide supplying firms with an understanding of how buying firms use SD to deploy their SP initiatives in order to achieve improvements in purchasing performance.

Originality/value

While there is some literature analyzing SP and the implications for buyer‐supplier relationships, the relationship between SP and SD practices and their effect on purchasing performance has not been yet analyzed.

Details

Journal of Business & Industrial Marketing, vol. 24 no. 3/4
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 7 April 2015

Lutz Kaufmann and Julia Gaeckler

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…

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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.

Details

International Journal of Physical Distribution & Logistics Management, vol. 45 no. 3
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 7 August 2007

Andrew Pressey, Nikolaos Tzokas and Heidi Winklhofer

Previous research has reported that the adoption of a strategic purchasing orientation (SPO) requires closer relationships with key suppliers and greater long‐term…

4077

Abstract

Purpose

Previous research has reported that the adoption of a strategic purchasing orientation (SPO) requires closer relationships with key suppliers and greater long‐term planning in supply management. This paper aims to develop a generic framework for the evaluation of key supply relationships incorporating seven key categories and to empirically test these assumptions by comparing firms reporting high levels of strategic purchasing to those with low levels.

Design/methodology/approach

The data collection employed a mail survey sent to the senior manager responsible for purchasing in their organisation (n = 50).

Findings

The article finds that high SPO firms more closely scrutinise their supply relationships across a broad range of attributes, and, as well as perennially important issues such as quality and delivery, they emphasise “fit” between buyer and supplier (e.g. fit with the competitive strategy and organisational culture of the buying firm) as an important criterion in identifying failing relationships.

Research limitations/implications

The positioning of the current study as one of the first to address the evaluation of suppliers under strategic purchasing adoption calls for further replication.

Practical implications

The results of this study afford suppliers an understanding of the criteria by which firms adopting strategic purchasing evaluate troubled or weak relationships. This would seem particularly timely given the shift towards strategic purchasing by many organisations.

Originality/value

This study presents one of the first attempts to assess “ineffective” supplier performance and to incorporate metrics on strategic supplier selection.

Details

Journal of Business & Industrial Marketing, vol. 22 no. 5
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 1 September 2002

Amelia S. Carr and John N. Pearson

The focus of this paper is on purchasing and supplier involvement in the firm. Using the resource‐base view of the firm, hypotheses are developed concerning purchasing

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Abstract

The focus of this paper is on purchasing and supplier involvement in the firm. Using the resource‐base view of the firm, hypotheses are developed concerning purchasing/supplier involvement, strategic purchasing and firm’s financial performance. A model of the hypothesized relationships is offered and empirically tested using structural equation modeling. The model is tested using data collected in 1999. Each factor in the model is measured by a number of scale items. Based on the results of confirmatory factor analysis, an overall fit of the model to the data is achieved. Both convergent and discriminate validity is demonstrated. The research findings reveal that the hypotheses tested in the model are supported. Purchasing/supplier involvement has a positive impact on strategic purchasing, and strategic purchasing has a positive impact on firm’s financial performance. The paper concludes with some research implications, limitations of the study and suggestions for future research.

Details

International Journal of Operations & Production Management, vol. 22 no. 9
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 14 May 2020

Peivand Bastani, Ali Tahernezhad and Seyyed Mostafa Hakimzadeh

According to the importance of strategic purchasing as an effective tool for resource allocation and service procurement, this study examines national laws, regulations…

Abstract

Purpose

According to the importance of strategic purchasing as an effective tool for resource allocation and service procurement, this study examines national laws, regulations and other related documents related to the strategic purchasing of health services related to the advanced medical equipment in Iran.

Design/methodolgy/approach

It was a national qualitative document analysis conducted in 2019 applying content analysis approach. The four-step Scott method was used to include the documents in terms of authenticity, credibility, representation and meaningfulness. After retrieving the related documents, they were coded with the implicit and explicit approach. MAXQDA10 was used for content analysis.

Findings

The findings show that according to the framework of effective factors on the strategic purchasing of health services, seven main factors are determined as the main essential factors in purchasing advanced medical equipment. These factors consist of health care providers, health service buyers, purchaser and service provider contracts, payment mechanisms, organization and management evaluation of health technology including expensive medical equipment and technology-related.

Research limitation/implication

The study had some limitations as follows: the proposed method should be tested and its feasibility has to be investigated through appropriate tools for Iranian insurance companies and those with the similar settings.

Practical implication

The results of this study can shed more light for policy makers affiliated in Ministry of Health as the main service provider, Ministry of Welfare and the insurance agencies as the main purchasers of health services on paying attention to these seven main themes extracted from the upstream documents and laws and regulations of the Islamic Republic of Iran.

Social implication

The strategic purchasing of expensive high technology-based medical equipment is a necessity for Iranian public health insurance organizations that is emphasized in national documents in the way of implementing this necessity.

Originality/value

This study examines all the laws and regulations and all related documents in the strategic purchasing of health services related to advanced medical equipment, giving an analysis of the most important challenges and requirements of implementing strategic purchasing in the health services provision sector with expensive medical equipment.

Details

International Journal of Health Governance, vol. 25 no. 2
Type: Research Article
ISSN: 2059-4631

Keywords

Article
Publication date: 1 July 2006

Paul D. Cousins, Benn Lawson and Brian Squire

The purpose of this paper is to investigate the different patterns of purchasing function configuration, and the relationship between such patterns and organisational performance.

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Abstract

Purpose

The purpose of this paper is to investigate the different patterns of purchasing function configuration, and the relationship between such patterns and organisational performance.

Design/methodology/approach

Despite considerable attention, there is little evidence showing the current situation toward the development of purchasing functions within organisations. Through quantitative data collected from 151 UK purchasing executives, cluster analysis is used to uncover and characterize four purchasing function configurations.

Findings

Four configurations, termed strategic, capable, celebrity, and undeveloped, were identified according to the characteristics they possess. Significant differences in supplier‐ and organisational‐related performance outcomes were found across these four purchasing function configurations. Purchasing skills were also shown to be a precondition for purchasing to exert influence within the organisation.

Research limitations/implications

A cross‐sectional survey provides limited longitudinal insight into the evolution of purchasing functions. Future research could examine how firms move between purchasing configurations. This study does, however, improve understanding of the different types of purchasing functions, their performance outcomes, and makes recommendations for potential strategies to be adopted for purchasing function improvement.

Practical implications

The findings are useful for practitioners seeking to improve the performance and standing of the purchasing function through identification of the characteristics and potential limitations faced at each phase.

Originality/value

This paper is one of few studies to provide an empirical test of purchasing function configuration, and the implications for organisational performance.

Details

International Journal of Operations & Production Management, vol. 26 no. 7
Type: Research Article
ISSN: 0144-3577

Keywords

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…

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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.

Article
Publication date: 1 December 1997

Terry Brookshaw and Mile Terziovski

Notes that despite a considerable amount of literature on the impact of strategic purchasing and TQM on organizational performance, empirical evidence of the dynamic link…

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Abstract

Notes that despite a considerable amount of literature on the impact of strategic purchasing and TQM on organizational performance, empirical evidence of the dynamic link is not easy to find. Examination of current literature identifies confusing definitions of strategic purchasing and TQM processes and the relationship to customer satisfaction. Analysis of a large random sample of manufacturing companies in Australia tests the strength of the relationship between strategic purchasing and customer satisfaction. Considering the literature, a conceptual, wider theoretical framework, together with a strategic purchasing construct and strategic purchasing framework are presented. Reports an empirical investigation on the effect of strategic purchasing variables on customer satisfaction. Presents initial results that suggest strategic purchasing may play a role in customer satisfaction and makes recommendations for future research.

Details

Benchmarking for Quality Management & Technology, vol. 4 no. 4
Type: Research Article
ISSN: 1351-3036

Keywords

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