Toward an Enhanced Definition and Measurement of Purchasing's Strategic Role in Buyer–Supplier Relationships

ABSTRACT

Purpose. The objectives of the paper are: (1) to extend the definition of the concept of supplier oriented purchasing behavior (SOPB), which are relationship-oriented purchasing practices emphasizing interpersonal skills, (2) to create a valid measure of SOPB, and (3) to discuss the implications of the SOPB construct and measure for future research and managerial application.

Methodology/Approach. The SOPB construct was operationalized as a second-order construct. Data collection involved judgment sampling and survey methodology in a field setting using organizational buyers as subjects. Construct measures were based on existing measures and previous research. Measurement reliability and validity were established using exploratory and confirmatory factor analysis and an overall measurement model was assessed with structural equation modeling using LISREL 8.8 (Jöreskong and Sörbom 2004).

Findings. Analysis resulted in a 17-item, five-factor measure of SOPB. Hypotheses related to nomological validity were supported concerning the association of SOPB with the purchasing context (importance of the purchasing situation) and to relationship satisfaction.

Research Limitations/Implications. Sampling used a judgment sample of organizational buyers that was regional in scope. Key directions for future research include using broader samples, incorporating the SOPB measure in studies of purchasing's impact on interfirm relationships and relationship outcomes, and using the SOPB measure to analyze both buyer and supplier evaluations of purchasing effectiveness.

Practical Implications. Supplier-oriented purchasing behavior focuses on and expands understanding about “soft” interpersonal behaviors practiced by purchasing personnel to foster long-term, interdependent relationships with key suppliers. Thus, SOPB provides specific tactics across multiple dimensions of purchasing that buyers can use toward fostering effective relationships with key partners such as suppliers.

Originality/Value. The study contributes to current research on the role of purchasing in developing and managing relationships by extending construct development and measurement of SOPB, an expanded set of behaviors that purchasing personnel can use to enhance the relationship effectiveness of purchasing practices.

KEYWORDS:

• Relationship marketing
• relational exchange
• supplier-oriented purchasing behavior

The authors wish to acknowledge and thank three anonymous reviewers for their constructive and helpful comments.