Impact of purchasing practices, supplier relationships and use of information technology on firm performance

Abstract

Purpose The study aims to establish an impact of supplier relationship and information and communication technology through purchasing practices on firm performance. Design/methodology/approach Review of relevant literature resulted in constructs, namely, supplier relationships, information and communication technology, purchasing practices and firm performance. A survey of 179 manufacturing companies through structured questionnaire was conducted. The responses were analysed through structural equation modelling using the partial least squares method. Findings It is observed that the firm performance is directly influenced by purchasing practices and indirectly by supplier relationships and information technology. The use of information technology in materials management affects supplier relationships and purchasing practices both. Practical implications The study provides a model for purchasing practitioners by highlighting the importance of supplier relationship management. Though the firms are running after improving technology, it can only affect firm performance through proper purchasing practices. Originality/value The study provides empirical evidence to the practical notions that exist in purchasing practitioners.

Procurement process risk and performance: empirical evidence from manufacturing firms

“…Although some businesses have associated this concept to only purchasing, others have related it with the entire processes or activities that lead to the purchasing, consumption and disposal of the commodity. Procurement represents a large portion of manufacturing firms' input and it plays a key role in the buyer's success stories (Ambekar et al, 2020). As such, the processes involved in conducting procurement activities are a major component of procurement.…”

“…The concept "procurement" has widely been used by businesses across the globe (Ambekar et al, 2020;Lysons, 2020). Procurement represents one of the most valuable assets of modern-day businesses including manufacturing firms (Lysons, 2020).…”

“…Procurement represents one of the most valuable assets of modern-day businesses including manufacturing firms (Lysons, 2020). It is the act of obtaining or sourcing for goods and services (Ambekar et al, 2020). Although some businesses have associated this concept to only purchasing, others have related it with the entire processes or activities that lead to the purchasing, consumption and disposal of the commodity.…”

“…The process serves as a guide to all procurement; thus, the success or failure of an organisation is largely dependent on it (S€ onnichsen and Clement, 2020;Raj et al, 2020). Related studies have revealed that every business has a unique procurement process which generally starts from procurement planning and preparation, product/service identification, requisition review, supplier selection and contract management (Adeniyi et al, 2020;Ambekar et al, 2020;Raj et al, 2020). These stages of procurement could be exposed to various risks; thereby, affecting the quality the entire procurement process if not properly managed.…”

Management of inventory for firms’ efficiency – a study on steel manufacturing industry

“…The performance of a firm is also impacted by procurement and purchasing practices. As a result, the use of information systems in handling materials affects both supply chains and supplier management (Ambekar et al, 2020). Operating performance (OP) is a sign…”