Does a purchasing manager’s need for cognitive closure (NFCC) affect decision-making uncertainty and supply chain performance?

Abstract

Purchasing managers have increasingly assumed a pivotal role in supply chain management. They are extensively involved in the decision-making processes for purchasing and supply decisions. Yet, the extent to which their personal traits may affect decision-making environments and supply chain performance (SCP) has not been subjected to rigorous empirical scrutiny. Extant research has remained largely anecdotal and disjointed. This paper seeks to extend the stream of research in supply chain management by systematically investigating the antecedents and performance outcomes of decision-making uncertainty (DMU). It enhances current SCP literature by incorporating two understudied constructs, namely DMU and purchasing managers’ need for cognitive closure (NFCC), to explore behavioural impacts on SCP. Using structural equation modelling, this study empirically tests a number of hypothesised relationships based on a sample of 201 purchasing firms. Analysis results provide robust support for the links between close buyer–supplier relationships, DMU, the NFCC and the SCP of the buying firm. Implications for future research and supply chain practice are also offered.

Keywords:

• buyer–supplier relationships
• decision-making uncertainty
• need for cognitive closure
• supply chain performance
• survey

Notes

1. These firms were from multiple industries and had an average sales volume in the range of $101–500 million per year and an average number of employees in the range of 251–500. The most frequently represented industries were electrical/electronic equipment and military logistics/acquisition. The majority of individuals in Group A were presidents and CEOs, while the majority of Group B members were middle management or lower.