An empirical taxonomy of purchasing practices in manufacturing firms in developing countries

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Abstract

Purchasing has been viewed in recent literature as a strategic contributor to achieve competitiveness. However, purchasing models in extant literature lack a comprehensive approach to define the variety of purchasing practices implemented in each purchasing strategic category. This paper provides a rich description and an empirical assessment of different practices in the purchasing construct. The study proposes a framework to allocate a variety of purchasing practices according to their strategic priorities that need to be achieved. An abductive approach was used. Based on reviewed literature and in-depth interviews with ten academic consultants and purchasing managers, a Likert scale questionnaire administered to purchasing executives representing manufacturing companies registered in the Amman Stock Exchange from 62 companies in 11 industries. The questionnaire explored purchasing practices related to cost (13 items), quality (10 items), and availability (4 items). The results indicate that purchasing practices can be grouped into three categories including cost practices, quality practices, and availability practices. There is a significant relationship between different purchasing practices and related strategic priorities. Purchasing practices can be utilized to achieve multiple strategic priorities. This paper provides some insights for future research in the area purchasing practices.

Keywords: Purchasing Processes, Purchasing Categories, Purchasing Practices, Factor Analysis, Strategic Intent

Authors’ individual contribution: Conceptualization – A.A.-R. and R.A.-H.; Methodology – A.A.-R. and R.A.-H.; Writing – Original Draft – A.A.-R., R.A.-H., and G.A.S.; Writing – Review & Editing – M.M.; Formal Analysis – M.M.; Supervision – L.S.; Investigation – A.A.-R. and M.M.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: L10, L21, L29, L66, M10

Received: 23.11.2020
Accepted: 24.02.2021
Published online: 25.02.2021

How to cite this paper: Al-Rashid, A., Al-Hiyari, R., Samawi, G. A., Mdanat, M., & Salhieh, L. (2021). An empirical taxonomy of purchasing practices in manufacturing firms in developing countries. Journal of Governance & Regulation, 10(1), 112-124. https://doi.org/10.22495/jgrv10i1art11