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Digital procurement in buyer-supplier relationships: the impact on operative excellence and supplier satisfaction

Liberale, Tommaso (2023) Digital procurement in buyer-supplier relationships: the impact on operative excellence and supplier satisfaction.

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Abstract:This study investigates the influence of digital procurement practices on supplier satisfaction and operational excellence amidst the digital transformation of purchasing. Employing PLS modelling, data from 119 suppliers in the chemical industry were analysed. Findings affirm that relational behaviour and growth opportunity positively impact supplier satisfaction, which is essential for attaining preferred customer status and preferential treatment. However, profitability and operational excellence demonstrate no significant relationship with supplier satisfaction. Whilst digital procurement practices enhance operational excellence, they do not influence supplier satisfaction. Notably, digital readiness is not a prerequisite for engaging in digital procurement, and digital capability asymmetry does not affect the relationship between digital procurement and supplier satisfaction. The applicability of the research is limited by its sector-specific focus and sample size, and it may not account for all relevant contextual factors. Nonetheless, it offers valuable insights by updating supplier satisfaction models and making a unique contribution to the study of digital procurement. The research advises prioritising relational behaviour and adopting digital practices, providing a decision-making tool for digital procurement practices. The originality of the study lies in its quantitative approach to analysing digital procurement practices, building upon previous satisfaction studies and integrating insights from the realm of digital transformation.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:https://purl.utwente.nl/essays/97362
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