The strategic fit between strategic purchasing and purchasing involvement: the moderating role of leadership styles

Abstract

PurposeThe aim of this study is to investigate and examine the impact of strategic purchasing practices (SPP) on strategic-fit (SF) by analyzing the influence of SPP on purchasing involvement in business strategy formulation with path-goal theory leadership styles as moderators.Design/methodology/approachUsing survey data from 320 respondents representing 64 manufacturing firms in the Middle East, the authors measure SPP, purchasing involvement, leadership styles and SF of the purchasing function with business strategy.FindingsBuilding on the path-goal approach to leadership, results suggest that participative, supportive and achievement-oriented leadership (AOL) styles are pure moderators, while directive leadership style (DLS) is a quasi-moderator in boosting the relationship between SPP and strategic purchasing involvement (SPI).Research limitations/implicationsLimitations of the sampling methodology and sample size restricts the scope for generalizing the hypotheses. Further, data were collected only from manufacturing companies. The paper provides managerial implications on purchasing involvement in business strategy formulation and the different roles of leadership styles.Originality/valueThis is the first scholarly work to examine the different leadership styles as a moderator that affects the strategic involvement and status of strategic purchasing.