Strategic purchasing, supply management practices and buyer performance improvement: an empirical study of UK manufacturing organisations

Abstract

Abstract\n Purchasing is increasingly seen as an important strategic activity of the firm. However, there is little evidence examining the effects of strategic purchasing on a firm?s inter-organizational supply management practices and performance. The purpose of this paper is to examine the effect of strategic purchasing on the supply management practices of socialization, supplier integration and supplier flexibility, together with relationship performance. Using empirical data collected from 111 United Kingdom purchasing executives, a structural equation model is used to test the theoretical framework. The results provide support for four of the six hypotheses developed. Strategic purchasing was found to have an indirect, significant effect on improving supplier relationship performance, acting through supplier process integration. Strategic purchasing also had a significant effect on the use of socialization mechanisms, but not on supplier flexibility. Our research indicates that close, long-term supplier relationships can lead to the creation of relational rents. Implications for future research and suggestions for improving the rigour of strategic purchasing research are made.