Inter-functional coordination of purchasing and logistics: impact on supply chain performance

Abstract

ABSTRACTThe aspects of interfunctional coordination, supply management and strategic purchasing are seen as indispensable elements of SCM-concepts. In contrast, the linkage of interfunctional coordination and strategic sourcing is mostly unexplored. In general, the area of interfunctional coordination at the purchasing-logistics interface is given less consideration. Therefore, this study investigates this particular interface referred to strategic sourcing decisions using extensive empirical evidence based on a web-based survey with 132 purchasing managers. Based on empirical data and the PLS-approach, this study analyses the performance impact based on interfunctional coordination of strategic sourcing decisions. In sum, the study gives valuable insights into the relationship of interfunctional coordination, conflicts and performance at the logistics-purchasing-interface. Following a social exchange perspective, the results demonstrate the relevance of interfunctional aspects to achieve supply performance. Therefore, the study illustrates that a distinct establishment of communication and cooperation processes does not necessarily lead to higher supply performance when the interaction in that relationship remains social unattractive. On the contrary, if the social interaction is based on a positive or social attractive relationship between the interfunctional areas, then the interaction at the purchasing-logistics interface could lead to increased supply chain performance.