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An empirical investigation on the impact of benchmarking on purchasing performance and business performance

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  • Mohammad Asif Salam
  • Sami Al Smadi

Abstract

The purpose of this study is to empirically examine the impact of benchmarking and standardisation in purchasing on purchasing and business performance. The resource-based view (RBV) has been adopted as the theoretical lens for this study to analyse the impact of benchmarking and standardisation on purchasing and business performance. To address the research problem, a survey was designed and a structural model was hypothesised and tested using structural equation modelling with 204 samples. Data were collected from the fast moving consumer goods (FMCG) industry in Thailand. The results of this research indicate that both benchmarking and standardisation have a significant positive impact on purchasing performance and an indirect positive effect through purchasing performance on business performance. Thus, benchmarking and standardising materials and purchasing procedures are important and may help firms to meet their materials expenditure targets and increase the quality of materials, on-time delivery from suppliers, inventory performance, as well as overall business performance.

Suggested Citation

  • Mohammad Asif Salam & Sami Al Smadi, 2016. "An empirical investigation on the impact of benchmarking on purchasing performance and business performance," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 9(6), pages 701-717.
    • Handle: RePEc:ids:ijpman:v:9:y:2016:i:6:p:701-717
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    Cited by:

    1. Imre Dobos & Gyöngyi Vörösmarty, 2021. "Green supplier selection using a common weights analysis of DEA and EOQ types of order allocation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(3), pages 612-621, April.

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