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Strategic purchasing, supply management, and firm performance
Author(s) -
Chen Injazz J.,
Paulraj Antony,
Lado Augustine A.
Publication year - 2004
Publication title -
journal of operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.649
H-Index - 191
eISSN - 1873-1317
pISSN - 0272-6963
DOI - 10.1016/j.jom.2004.06.002
Subject(s) - purchasing , business , strategic sourcing , supply chain , supply chain management , industrial organization , purchasing management , marketing , scrutiny , supply management , empirical research , sample (material) , strategic management , extant taxon , competitive advantage , structural equation modeling , strategic planning , strategic financial management , philosophy , mathematics , law , chemistry , biology , power (physics) , epistemology , chromatography , quantum mechanics , evolutionary biology , political science , statistics , physics
Purchasing has increasingly assumed a pivotal strategic role in supply‐chain management. Yet, claims of the strategic role of purchasing have not been fully subjected to rigorous theoretical and empirical scrutiny. Extant research has remained largely anecdotal and theoretically under‐developed. In this paper, we examine the links among strategic purchasing, supply management, and firm performance. We argue that strategic purchasing can engender sustainable competitive advantage by enabling firms to: (a) foster close working relationships with a limited number of suppliers; (b) promote open communication among supply‐chain partners; and (c) develop long‐term strategic relationship orientation to achieve mutual gains. Using structural equation modeling, we empirically test a number of hypothesized relationships based on a sample of 221 United States manufacturing firms. Our results provide robust support for the links between strategic purchasing, supply management, customer responsiveness, and financial performance of the buying firm. Implications for future research and managerial practice in supply‐chain management are also offered.