Strategic procurement, supplier integration, and speed‐to‐market : The mediating role of procurement lead‐time performance and manufacturing performance

Abstract

This study aims to examine how strategic procurement and supplier integration influence directly to firms' manufacturing performance and speed to market of their products, and indirectly through procurement lead‐time performance. Explanatory and cross‐sectional research design has been used for this study and the primary data were collected through a structured questionnaire from 279 middle‐higher procurement management officials of different large‐scale manufacturing firms. The structural equation model is applied to derive the research results. The study results confirm the significance of strategic procurement and supplier integration in superior manufacturing and speed‐to‐market performances. Furthermore, results reveal that firm's procurement strategy and supplier integration are key determinants of lead‐time and significantly affect the manufacturing performance. Furthermore, the results demonstrate that procurement lead‐time performance mediates the relationship between strategic procurement and speed‐to‐market. The study recommends well planned procumbent and excellent supplier integration will lead to an efficient manufacturing process and speed‐to‐market.

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