The overall objective of this research was to explore the association between implementation of cooperative purchasing/supplier relationships, internal service quality, and an organization's ability to provide quality products and services to its customers. Specifically, purchasing-related factors influencing internal and external product and service quality were identified from the literature and an internal service quality model was developed and then tested using empirical data. Survey data were collected from 118 US purchasing executives in a wide range of industries. The findings from this study indicate the existence of strong positive relationships between implementation of cooperative purchasing/supplier relationships, internal service quality, and the service and product quality provided to external customers. Additionally, the key role of purchasing in the integration and communication of quality expectations and quality performance throughout the firm is demonstrated.

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SUMMARY This article presents findings from a comprehensive survey concerning internal service quality in a wide variety of U.S. companies. The objectives of this article were to further develop the internal service quality model and to study the internal customer‐supplier relationships of companies with high levels of purchasing service quality. Purchasing managers were asked to assess and describe both incoming and outgoing internal service quality and associated activities for their purchasing departments and the organization as a whole. The respondents were also asked to assess the service quality provided to their firm's external customers. This information was used to summarize performance in each area for respondents with high levels of internal service quality, from both an internal supplier and internal customer perspective. Comparative information is provided for firms having low‐to‐moderate levels of internal service quality.

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