Relationship between purchasing strategies, purchasing integration and purchasing performance in the Sri Lankan manufacturing sector

Abstract

The goal of this research is to look into how purchasing strategies affect purchasing performance in Sri Lanka's manufacturing sector, with purchasing integration serving as a mediating factor. An overall response rate of 83% was obtained from 121 questionnaires that were distributed via email and telephone interviews, and 100 of those questionnaires contained all the data necessary for statistical analysis. These questionnaires were gathered from critical purchasing units of Sri Lankan manufacturing firms. The link between purchasing strategies, purchasing integration, and purchasing performance was investigated through quantitative analysis. The results of the research demonstrate a notable positive impact of purchasing strategies on purchasing performance. Additionally, both strategic purchasing alignment and cross-functional purchasing integration partially mediate the link between purchasing strategies and purchasing performance. Therefore, purchasing managers in production organizations should prioritize both strategic and lateral purchasing integration to effectively leverage the benefits of purchasing strategies and enhance purchasing performance. Moreover, top management in manufacturing organizations should recognize the importance of involving the purchasing function in the strategic planning process of the firm.