Effect of strategic purchasing practices and buyer-supplier integration on supply chain performance: A study of fan manufacturing SMEs of Pakistan
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Date
2015
Authors
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Publisher
UNIVERSITY OF MANAGEMENT AND TECHNOLOGY
Abstract
Strategic considerations towards the purchasing function are significant not only for large organizations but also for small and medium sized business establishments. Small and medium sized companies are significant part of any economy and are basically responsible for growth and development in the economy. They are the backbone of economy because they generate income and employment opportunities. For all SMEs it has become significant to improve their purchasing practices because through this they can achieve competitive advantage. This study focuses on the fan manufacturing SMEs of Pakistan. Purchasing performance of SMEs and the supplier relationships are closely interrelated and therefore are the main theme of this study. Previous research mainly focuses on achieving competitive advantage through strategic purchasing as firms can achieve competitive advantages by combining their own core competencies with the capabilities of their suppliers and maintaining long term relationships. This study is backed by the relational aspect of the Resource Based View focusing on the collaborative advantage along with the competitive advantage and examine the combined impact of strategic purchasing practices and buyer supplier integration on supply chain performance of fan manufacturing SMEs. Cross sectional field survey research design was used to conduct this research. Structural Equation Modeling was used to test the hypothesis. SmartPLS version 2.0 was utilized for data analysis. Process MACRO designed by Prof. Heys was applied to test the mediation. The results of the study indicate the positive impact of strategic purchasing initiatives on buyer-supplier integration at operational, informational and relational levels and a significant indirect
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impact on supply chain performance. The findings of the study are useful for SME managers and owners for developing effective purchasing strategies.
Description
Supervisor: Dr. Tashfeen Mehmood Azhar
Keywords
MS Thesis, Strategic purchasing, Buyer-supplier integration, Relational integration, Operational integration, Informational integration, Supply chain performance, SMEs