Organizational Structure Characteristics' Influences on International Purchasing Performance in Different Purchasing Locations

Nicole Franziska Richter*, Christpher Schlägel, David F. Midgley, Tabea Tressin

*Corresponding author for this work

    Research output: Contribution to journalArticleAcademicpeer-review

    5 Citations (Scopus)

    Abstract

    This study contributes to the understanding of how firms should structure their purchasing organization to improve their performance. While the research into structural characteristics’ impacts on purchasing performance is evolving, it is still incomplete, especially concerning the contingencies on different purchasing environments. Drawing on ideas from the organizational information processing and contingency approaches as well as the international business literature, the present study proposes a model in which three key organizational structure characteristics – centralization, standardization, and specialization – are associated with purchasing performance. This study posits that the relationships are contingent on a purchasing location’s formal and informal institutional context. Based on a sample of 195 German manufacturers, the model is empirically tested using structural equation modeling. The findings support the relevance of organizational structure characteristics for international purchasing and firm performance and they also support the notion that the effects are contingent on the purchasing location’s institutional context.

    Original languageEnglish
    Article number100523
    JournalJournal of Purchasing and Supply Management
    Volume25
    Issue number4
    Early online date17-Dec-2018
    DOIs
    Publication statusPublished - Oct-2019

    Keywords

    • Strategic international purchasing
    • International purchasing performance
    • Organizational structure
    • Institutional context
    • Firm performance
    • RESOURCE-BASED VIEW
    • SUPPLY MANAGEMENT
    • CONCEPTUAL-FRAMEWORK
    • RELATIVE IMPORTANCE
    • EMPIRICAL-EVIDENCE
    • PSYCHIC DISTANCE
    • CHAIN MANAGEMENT
    • MEDIATING ROLE
    • BUYING CENTER
    • STRATEGY

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