University of Twente Student Theses


How purchasing structures can contribute to firm performance

Dieteren, S.H.P. (2023) How purchasing structures can contribute to firm performance.

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Abstract:Purchasing & supply management practices may have broad impact in some organisations, where purchasing practices support the overall corporate strategy. Therefore, the purchasing strategy must be in line with the overall corporate strategy and aim for the goals that are set in the corporate strategy. Purchasing structures may have a significant impact on the purchasing strategy and performance, however the literature does not describe the influence of purchasing structures on purchasing performance extensively. Therefore, this research aims to investigate how purchasing structures can contribute to purchasing performance, and subsequently to firm performance. This research draws on case research at a first-tier supplier to OEMs in the high-tech industry, in which two locations of the case company use different types of purchasing structures. One location employs a purchasing project management structure, the other location employs a purchasing hybrid management structure. These two purchasing structures are compared to each other by looking at the differences in the use of sourcing levers and relating sourcing levers to different performance dimensions. The case research draws on interviews conducted with purchasing professionals at the case company and observations of KPI performance. The findings in this research indicate that the purchasing project management structure is a customer focussed purchasing structure, whereas purchasing hybrid management is a supplier-focussed structure. A model on the influence of the purchasing structures on sourcing levers and performance dimensions is introduced, in which the purchasing hybrid management structure allows for more (efficient) use of sourcing levers. Next to that contextual factors that influence this model were identified. Additionally, this research suggests a hybrid purchasing structure to be used at the case company, to achieve supplier focus without losing (internal) customer alignment.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
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