Title: An empirical investigation on the impact of benchmarking on purchasing performance and business performance

Authors: Mohammad Asif Salam; Sami Al Smadi

Addresses: Faculty of Economics and Business Administration, King Abdulaziz University, Jeddah, Saudi Arabia ' Faculty of Economics and Business Administration, King Abdulaziz University, Jeddah, Saudi Arabia

Abstract: The purpose of this study is to empirically examine the impact of benchmarking and standardisation in purchasing on purchasing and business performance. The resource-based view (RBV) has been adopted as the theoretical lens for this study to analyse the impact of benchmarking and standardisation on purchasing and business performance. To address the research problem, a survey was designed and a structural model was hypothesised and tested using structural equation modelling with 204 samples. Data were collected from the fast moving consumer goods (FMCG) industry in Thailand. The results of this research indicate that both benchmarking and standardisation have a significant positive impact on purchasing performance and an indirect positive effect through purchasing performance on business performance. Thus, benchmarking and standardising materials and purchasing procedures are important and may help firms to meet their materials expenditure targets and increase the quality of materials, on-time delivery from suppliers, inventory performance, as well as overall business performance.

Keywords: resource-based view; RBV; purchasing performance; business performance; structural equation modelling; SEM; Thailand; fast moving consumer goods; FMCG industry; materials expenditure; materials quality; on-time delivery; supplier delivery; inventory performance.

DOI: 10.1504/IJPM.2016.079981

International Journal of Procurement Management, 2016 Vol.9 No.6, pp.701 - 717

Received: 25 May 2015
Accepted: 13 Jul 2015

Published online: 24 Sep 2016 *

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