The Mediation Effects of Purchasing Strategy and Supplier Integration on the Relations Between Purchasing Skills and Corporate Performance

Abstract

The objectives of this study are to: 1) test the influence of purchasing skills on corporate performance; 2) test mediation effect of strategic purchasing on the relationship between purchasing skills and corporate performance; and 3) test the mediation effect of supplier integration on the relationship between purchasing strategy and corporate performance. This research carried out in 105 restaurants as micro and small enterprises (MSEs) in Dili, and questionnaires were used to collect data. SMART-PLS 3.0 was used to test hypothesis. The findings revealed that purchasing skills had no significant impacts on corporate performance, while supplier integration fully mediated the relationship between purchasing strategy and corporate performance. By contrast, strategic purchasing has no significant impact on the relationship between purchasing skills and corporate performance. This research extends the empirical works of Carr and Smeltzser (2000), Carr and Pearson (2002) and Cho et al. (2019) by using a combined strategic purchasing and supplier integration as mediation variables to enhance the relations between purchasing skills and corporate performance. This study also contributes to the debate on firm’s resources and capabilities and their impacts on competitive advantages and firm performance in emerging countries. The study practically contributes to the restaurant regulators and managers which aim to enhance corporate performance by using supplier integration and strategic purchasing.

The behavioural uncertainty and environmental sustainability of restaurant businesses: the moderating role of purchasing technical knowledge

“…A body of literature emphasises the purchasing role in the restaurant industry (de Belo, Amaral, & Belo, 2020; Cho, Bonn, Giunipero, & Divers, 2019). These studies discuss the importance of purchasing skills in restaurant operations.…”