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An empirical study of the relationships among strategic purchasing, supply chain capabilities and performance: SEM approach

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  • Kamel A. Fantazy

    (University of Winnipeg, Canada)

  • Bhasker Mukerji

    (St. Francis Xavier University, Canada)

Abstract

The purpose of the study is to examine the sequential relationships among the six factors: the strategic purchasing (SP) to supply chain capabilities in terms of (bilateral communications and information sharing, supplier relationships and involvement, and the number of partners and level of trust and organization financial performance (FP) and non-financial performance (NFP). Using data from UAE and employing Structured Equation Modeling, findings show that SP has a significant positive effect on supply chain capabilities, and the supply chain capabilities have a strong positive effect on FP. However, SP and supply chain capabilities have moderate effects on NFP and strong effect on FP. This points out that the organizations in UAE are likely to emphasize SP and supply chain capabilities to achieve FP. Conversely, the moderate relationship with NFP highlights that the organizations show less concern for NFP in emerging markets such as UAE.

Suggested Citation

  • Kamel A. Fantazy & Bhasker Mukerji, 2021. "An empirical study of the relationships among strategic purchasing, supply chain capabilities and performance: SEM approach," Journal of the Academy of Business and Emerging Markets, Academy of Business and Emerging Markets, vol. 1(1), pages 3-18.
    • Handle: RePEc:ris:jabema:021883
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