Exploring the purchasing-logistics interface: Conceptualization, antecedents of integration, and performance implications

Rich streams of literature have explored the interactions between environment, strategy, structure and performance in general, and the drivers, nature and performance impacts of integration between specific functions, particularly R&D-Marketing and Logistics-Marketing. The extant supply chain literature frequently mentions the need for the integration of purchasing and inbound logistics for firms to remain competitive, yet no studies have specifically addressed the combination of environmental and strategic factors antecedent to more integration between these internal supply chain functions. This research merges the contingency perspective with work on inter-functional integration and supply chain management to develop a grounded conceptualization of the purchasing-inbound logistics interface along two dimensions: breadth (span of activities) and depth (functional integration). It develops a theoretical framework built around the integration dimension, exploring the environmental, strategic, and contextual factors affecting the level of purchasing-logistics integration and the performance implications thereof.; The research utilizes an empirical survey methodology, with a target sample frame of purchasing and logistics managers in paired dyads within the food and chemical manufacturing sectors. Structural equation modeling (SEM) and multiple regression analysis were performed on a sample of 106 completed dyads.; The study found statistically significant, negative associations between just-in-time sourcing and logistics outsourcing and all three integration constructs (information exchange, collaboration and organizational alignment). Research indicates statistically significant, positive associations between supply chain modularity and these same three constructs. It also found statistically significant, positive associations between organizational alignment and supply base performance. Statistically significant and negative association was found between centralization and organizational alignment, and firm size was found to negatively moderate (weaken) this association.