Cinderella purchasing transformation: linking purchasing status to purchasing practices and business performance

Abstract : This paper contributes to the ongoing debate about the relevance of the purchasing function for the firm value creation. We empirically examine the role of the purchasing function in improving business performance through an international survey based on 653 responses. Results suggest that purchasing practices related to spend rationalization have a positive impact on the overall business performance, whereas supplier development & integration and sustainable purchasing have not. Moreover, the purchasing recognition by top managers and other organizational units emerge as a powerful antecedent of all purchasing practices. Instead, pure formal authority provided by the position in the organization chart (i.e. the report level) does not have any influence on purchasing practices adoption.