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An empirical investigation of the impact of strategic sourcing and e-procurement practices on supply chain performance

Posted on:2003-08-21Degree:Ph.DType:Dissertation
University:State University of New York at BuffaloCandidate:Kocabasoglu, CananFull Text:PDF
GTID:1469390011988959Subject:Business Administration
Abstract/Summary:
This dissertation investigates the impact of strategic sourcing and e-procurement practices, in conjunction with advanced manufacturing technologies, on manufacturing flexibility and supply chain performance. A theoretical model is developed and resulting hypotheses are tested empirically.; The attention on Purchasing today contrasts with the interest in manufacturing-related initiatives during last two decades such as adoption of advanced manufacturing technologies (AMT), which has been the primary means to enhance flexibility of the firm.; This study first investigates the key elements of strategic sourcing, which include: strategic elevation of the Purchasing function, stronger cross-functional integration, and establishment of long-term relationships with suppliers through information sharing with and assistance to suppliers (Cavinato 1991, Carr & Smeltzer 1997, Anderson & Katz 1998). The study also assesses the extent to which Purchasing exploits new opportunities provided by Internet through electronic procurement to augment supply chain performance. The direct relationships are evaluated, as well as the indirect effects of purchasing initiatives and AMT via various types of manufacturing flexibility.; The survey instrument was subjected to customary statistical procedures for development and validation. Respondents were chosen among senior Purchasing executives of manufacturing firms under SIC codes 34 to 38. They were selected from the membership database provided by Institute of Supply Management (ISM).; This study provides several theoretical contributions to Purchasing and Supply Chain Management research. The results indicate that strategic sourcing is a second-order factor, which can be measured through its sub-dimensions. The study also assesses the utilization of e-procurement according to purchased material types and specific purchasing tasks. This study is one of the first studies in operations management to utilize PLS-based structural equation modeling.; Several useful managerial implications have also emerged, indicating that strategic sourcing and e-procurement have a strong, direct influence on supply chain performance. As for e-procurement, despite the fact that the level of adoption is currently in early stages, it is perceived to have a significant impact on responsiveness and customer satisfaction. From the standpoint of enhancing supply chain performance, the study indicates that the connections between Purchasing initiatives and various types of manufacturing flexibility are not too clear at this juncture.
Keywords/Search Tags:Strategic sourcing, Supply chain performance, Manufacturing flexibility, Impact, Purchasing
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