Levels of strategic purchasing: Impact on supply integration and performance

Antony Paulraj, Injazz J. Chen, James Flynn

Research output: Journal PublicationArticlepeer-review

162 Citations (Scopus)

Abstract

The growing importance of supply chain management has led to an increasing recognition of the strategic role of purchasing, which has recently evolved and expanded from "buying" to "procurement" and "supply management". In this study, we chart our sample firms' advance in strategic purchasing, characterized by the strategic focus, strategic involvement of the purchasing function and the status and visibility of the purchasing professionals, into three stages. This study provides strong empirical support for the importance of strategic purchasing by showing that, by moving towards the more advanced stages, firms at the nascent stage of strategic purchasing can achieve better supply integration, a second-order construct composed of four facets of relational, process, information, and cross-organizational team integration. Our analyses further reveal that strategic purchasing can have a profound impact on supply chain performance for both buyer and supplier firms.

Original languageEnglish
Pages (from-to)107-122
Number of pages16
JournalJournal of Purchasing and Supply Management
Volume12
Issue number3
DOIs
Publication statusPublished - May 2006
Externally publishedYes

Keywords

  • Strategic purchasing
  • Supply chain performance
  • Supply integration

ASJC Scopus subject areas

  • Strategy and Management
  • Marketing

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