The effect of strategic alignment on purchasing management

Javier Alfonso Rodríguez-Escobar · Javier González Benito

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Quality and Supply Management Accounting and Organizational Management Outsourcing and Supply Chain Management

Abstract

Purpose This research aims to establish the role of the purchasing function’s strategic alignment in the relationship between well-established practices and performance in that function. It is argued that the strategic alignment of purchasing may have effects (direct, mediating and moderating effects) on the purchasing function’s operating performance. Design/methodology/approach The hypotheses derived from key studies about strategic and advanced purchasing practices are tested with data from 156 industrial companies using structural equation modelling methodology. Findings The results suggest that the effect of strategic alignment on the role of purchasing consists of mediated effects on purchasing performance through implementation of certain advanced practices. It was also concluded that strategic alignment – as well as the implementation of these advanced purchasing practices – fosters the implementation of differentiation strategies based on quality, dependability and flexibility rather than on the implementation of cost leadership strategies. Research limitations/implications Although it is a common practice in operations management research, the use of perceptual measures obtained from a single informant constitutes a noteworthy limitation. Future research should make an effort to combine different sources of information and to identify and use more objective indicators. Practical implications Top managers should take into account the need to involve the purchasing function in the firm’s strategic planning process. Originality/value The results not only confirm findings from previous literature as to the purchasing function’s strategic relevance but also help clarify the mechanisms that make this integration important.

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References

1991Firm Resources and Sustained Competitive Advantage 2004Firm resources and sustained competitive advantage 1998The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage 2000A Resource-Based Theory of Strategic Alliances 2001Arcs of integration: an international study of supply chain strategies 2004Towards a theory of supply chain management: the constructs and measurements 1989The Concept of Fit in Strategy Research: Toward Verbal and Statistical Correspondence 2004The impact of supply chain management practices on competitive advantage and organizational performance

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