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Cinderella purchasing transformation: linking purchasing status to purchasing practices and business performance

Author

Listed:
  • Davide Luzzini

    (Audencia Business School)

  • Stefano Ronchi

    (POLIMI - Politecnico di Milano [Milan])

Abstract

This paper contributes to the ongoing debate about the relevance of the purchasing function for the firm value creation. We empirically examine the role of the purchasing function in improving business performance through an international survey based on 653 responses. Results suggest that purchasing practices related to spend rationalization have a positive impact on the overall business performance, whereas supplier development & integration and sustainable purchasing have not. Moreover, the purchasing recognition by top managers and other organizational units emerge as a powerful antecedent of all purchasing practices. Instead, pure formal authority provided by the position in the organization chart (i.e. the report level) does not have any influence on purchasing practices adoption.

Suggested Citation

  • Davide Luzzini & Stefano Ronchi, 2016. "Cinderella purchasing transformation: linking purchasing status to purchasing practices and business performance," Post-Print hal-01289902, HAL.
    • Handle: RePEc:hal:journl:hal-01289902
    DOI: 10.1080/09537287.2015.1137986
    Note: View the original document on HAL open archive server: https://audencia.hal.science/hal-01289902
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    References listed on IDEAS

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    1. Davide Luzzini & Markus Amann & Federico Caniato & Michael Essig & Stefano Ronchi, 2015. "The path of innovation: purchasing and supplier involvement into new product development," Post-Print hal-01289738, HAL.
    2. Wagner, Stephan M., 2006. "A firm's responses to deficient suppliers and competitive advantage," Journal of Business Research, Elsevier, vol. 59(6), pages 686-695, June.
    3. De Toni, Alberto & Nassimbeni, Guido, 2000. "Just-in-time purchasing: an empirical study of operational practices, supplier development and performance," Omega, Elsevier, vol. 28(6), pages 631-651, December.
    4. Joe Miemczyk & Désirée Knoppen, 2010. "Analysis of equivalence among sub-samples: Preliminary results of the International Purchasing Survey," Post-Print hal-00761966, HAL.
    5. Helen Walker & Wendy Phillips, 2009. "Sustainable procurement: emerging issues," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 2(1), pages 41-61.
    6. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    7. Friso Zimmermann & Kai Foerstl, 2014. "A Meta-Analysis of the “Purchasing and Supply Management Practice–Performance Link”," Journal of Supply Chain Management, Institute for Supply Management, vol. 50(3), pages 37-54, July.
    8. Yu, Haisheng & Zeng, Amy Z. & Zhao, Lindu, 2009. "Single or dual sourcing: decision-making in the presence of supply chain disruption risks," Omega, Elsevier, vol. 37(4), pages 788-800, August.
    9. Vining, Aidan & Globerman, steven, 1999. "A conceptual framework for understanding the outsourcing decision," European Management Journal, Elsevier, vol. 17(6), pages 645-654, December.
    10. Berger, Paul D. & Gerstenfeld, Arthur & Zeng, Amy Z., 2004. "How many suppliers are best? A decision-analysis approach," Omega, Elsevier, vol. 32(1), pages 9-15, February.
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    Cited by:

    1. Andrea S. Patrucco & Davide Luzzini & Stefano Ronchi & Michael Essig & Markus Amann & Andreas H. Glas, 2017. "Designing a public procurement strategy: lessons from local governments," Public Money & Management, Taylor & Francis Journals, vol. 37(4), pages 269-276, June.
    2. Minelle E. Silva & Breno Nunes, 2022. "Institutional logic for sustainable purchasing and supply management: Concepts, illustrations, and implications for business strategy," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1138-1151, March.
    3. André Tchokogué & Jean Nollet & Gilles Paché & Raluca-Mihaela Chiurciu, 2017. "The internal legitimacy of the procurement department: From its importance to its determination [La légitimation interne du département d’approvisionnement : De son importance à sa détermination]," Post-Print hal-01832329, HAL.
    4. Maestrini, Vieri & Luzzini, Davide & Maccarrone, Paolo & Caniato, Federico, 2017. "Supply chain performance measurement systems: A systematic review and research agenda," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 299-315.
    5. Vicky Ching Gu & Bin Zhou & Qing Cao & Jeffery Adams, 2021. "Exploring the relationship between supplier development, big data analytics capability, and firm performance," Annals of Operations Research, Springer, vol. 302(1), pages 151-172, July.

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    Keywords

    Business Performance; Purchasing Status; Purchasing Practices;
    All these keywords.

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