Purchasing Competence and Its Relationship with Manufacturing Performance

SUMMARY This article develops purchasing competence as a valid construct and explores its relationship with different manufacturing priorities. An empirical study is conducted among purchasing professionals in manufacturing firms. The results of the research indicate that purchasing competence can be operationalized, developed, and estimated in a firm. Further, purchasing competence is found to have a positive impact on manufacturing cost, quality, and delivery, as well as new product introduction and customization performance. Purchasing integration, a component of purchasing competence, is found to relate to all dimensions of manufacturing performance.

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