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Can Firm Size Moderate Navigating Economic Performance Through Strategic Purchasing?
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Author(s): Uday Inala (University of Hyderabad, India), John Yesudas Valluri (Jain University, India), Gunupuru Koteswara Rao (University of Hyderabad, India), Shyamaladevi Balakrishnan (SRM Institute of Science and Technology, Kattankulathur, India), A. S. Kannan (GRT Institute of Engineering and Technology, India)and Easwaramoorthy Rangaswamy (Amity Global Institute, Singapore)
Copyright: 2024
Pages: 13
Source title:
Data-Driven Decision Making for Long-Term Business Success
Source Author(s)/Editor(s): Sonia Singh (Toss Global Management, UAE), S. Suman Rajest (Dhaanish Ahmed College of Engineering, India), Slim Hadoussa (Brest Business School, France), Ahmed J. Obaid (University of Kufa, Iraq)and R. Regin (SRM Institute of Science and Technology, India)
DOI: 10.4018/979-8-3693-2193-5.ch016
Purchase
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Abstract
This study empirically investigates the relationship between strategic purchasing, environmental purchasing, and economic performance in the manufacturing industry in India. Employing partial least squares (PLS) analysis guided by the dynamic capability view theory, this study examined the direct and moderating linkages between organizational purchasing practices and economic outcomes. The findings reveal a significant positive association between strategic purchasing and economic performance, with firm size acting as a moderator. Conversely, no moderating effect of firm size is found between environmental purchasing and economic performance. This research underscores the pivotal role of strategic purchasing in maximizing a supplier base, enhancing supplier relations, and influencing expenditures and operations across the supply network. This provides insights into the strategic role of purchasing in maintaining quality standards and enabling international growth.
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