The influence of purchasing strategies on manufacturing performance

Abstract

Purpose The purpose of this paper is to analyze the importance of purchasing strategies contribution on manufacturing performance, realizing purchasing function as a key component in organizations. Design/methodology/approach A total of 750 questionnaires were distributed via e‐mail and resulted in 158 questionnaires or 21 percent being returned with complete information and used for statistical analysis, to study the significant level of the constructed model among manufacturing firms located in major industrial states in Malaysia. Findings The results obtained reveal that purchasing strategies create significant positive impact on manufacturing performance which comprises the competitive priorities of the firms in terms of quality, cost, cycle time, new product introduction time line, delivery speed and dependability and finally, customization responsiveness performance. Research limitations/implications Manufacturing firms should focus on purchasing strategies, effective negotiation, supplier collaborative relationship and interaction; effective cost management and supply base management as navigators for their excellence performance in the current volatile market conditions. Originality/value The paper shows that purchasing strategies are vital for manufacturing firms in order to remain competitive and relevant in the challenging and competitive business environment.

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