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Purchasing-logistics integration and supplier performance: an information-processing view

Purchasing-logistics integration and supplier performance: an information-processing view PurposeThe purpose of this paper is to develop a purchasing-logistics integration (PLI) conceptualization along two dimensions: mutual responsibility and integrative efforts. This conceptualization is then tested as to whether it provides any insights for supplier performance.Design/methodology/approachInformation-Processing Theory is used to posit hypotheses linking the dimensions of PLI with various measures of supplier performance. Hypotheses are then tested with a dyadic data set of purchasing and logistics managers, using multiple regression methods.FindingsPurchasing managers found mutual responsibility to positively influence supplier delivery speed, whereas logistics managers found it to positively influence supplier price performance. Generally speaking, purchasing managers perceived a stronger linkage between formal integrative efforts (liaison roles and joint reward systems) and supplier performance, whereas logistics managers perceived this linkage to be stronger for informal integrative efforts such as information exchange and collaboration.Research limitations/implicationsStudy results are cross-sectional in nature and consist of three major industry groupings. The dyadic data were analyzed separately to avoid significant data loss.Practical implicationsSupply chain managers will find the areas where purchasing and logistics managers overlap in their perceptions (as well as where they differ) useful. In addition, an understanding of how PLI influences supplier performance should help improve organizational effectiveness.Originality/valuePLI is a highly important, yet understudied, internal connection. This study provides a useful framework in helping academics and practitioners better understand this crucial internal connection, and how it relates to the performance extracted from suppliers. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The International Journal of Logistics Management Emerald Publishing

Purchasing-logistics integration and supplier performance: an information-processing view

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References (68)

Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0957-4093
DOI
10.1108/IJLM-07-2014-0113
Publisher site
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Abstract

PurposeThe purpose of this paper is to develop a purchasing-logistics integration (PLI) conceptualization along two dimensions: mutual responsibility and integrative efforts. This conceptualization is then tested as to whether it provides any insights for supplier performance.Design/methodology/approachInformation-Processing Theory is used to posit hypotheses linking the dimensions of PLI with various measures of supplier performance. Hypotheses are then tested with a dyadic data set of purchasing and logistics managers, using multiple regression methods.FindingsPurchasing managers found mutual responsibility to positively influence supplier delivery speed, whereas logistics managers found it to positively influence supplier price performance. Generally speaking, purchasing managers perceived a stronger linkage between formal integrative efforts (liaison roles and joint reward systems) and supplier performance, whereas logistics managers perceived this linkage to be stronger for informal integrative efforts such as information exchange and collaboration.Research limitations/implicationsStudy results are cross-sectional in nature and consist of three major industry groupings. The dyadic data were analyzed separately to avoid significant data loss.Practical implicationsSupply chain managers will find the areas where purchasing and logistics managers overlap in their perceptions (as well as where they differ) useful. In addition, an understanding of how PLI influences supplier performance should help improve organizational effectiveness.Originality/valuePLI is a highly important, yet understudied, internal connection. This study provides a useful framework in helping academics and practitioners better understand this crucial internal connection, and how it relates to the performance extracted from suppliers.

Journal

The International Journal of Logistics Management – Emerald Publishing

Published: May 8, 2017

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