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THE EFFECTS OF STRATEGIC PURCHASING PRACTICES ON PERFORMANCE: AN ANALYSIS IN THE TURKISH HOSPITALITY SECTOR

Year 2019, BEYKOZ AKADEMİ 2019 ÖZEL SAYI, 123 - 135, 01.10.2019
https://doi.org/10.14514/byk.m.26515393.2019.sp/123-135

Abstract

In this study, we examine the impact of strategic purchasing practices on hotel performance. In
order to test our hypotheses, we use survey data from 71 hotels in Turkey. First, we perform a
cluster analysis and identify two types of purchasing strategies based on supplier selection
criteria: traditional vs. strategic. Then, via partial least squares (PLS) method, we test the effect
of long-term relationships, supplier development and environmental supplier development on
hotel performance. Our results show that long-term relationships have a negative effect on both
market and financial performance. Additionally, we find that supplier development has a
positive effect on performance, but only for hotels with a traditional purchasing strategy.
Interestingly, we find that environmental supplier development has a positive effect on financial
performance in hotels with a traditional purchasing strategy, but a positive effect on market
performance in hotels with a strategic purchasing strategy.

References

  • Aboelmaged, M. (2018). The drivers of sustainable manufacturing practices in Egyptian SMEs and their impact on competitive capabilities: A PLS-SEM model. Journal of Cleaner Production, 175, 207-221.
  • Ağan, Y., Kuzey, C., Acar, M.F., & Açıkgöz, A. (2016). The relationship between corporate social responsibility, environmental supplier development, and firm performance. Journal of Cleaner Production, 112(3), 1872-1881.
  • Ali, F., Rasoolimanesh, S. M., Sarstedt, M., Ringle, C. M., & Ryu, K. (2018). An assessment of the use of partial least squares structural equation modeling (PLS-SEM) in hospitality research. International Journal of Contemporary Hospitality Management, 30(1), 514- 538.
  • Apostolova, B.Z., Kroon, M.J., Richter, M., & Zimmer, I.M., (2015). Strategic purchasing: A global perspective. University of Groningen.
  • Bai, C., & Sarkis, J. (2010). Green supplier development: analytical evaluation using rough set theory. Journal of Cleaner Production, 18(12), 1200-1210.
  • Carr, A.S., & Pearson, J.N. (2002). The impact of purchasing and supplier involvement on strategic purchasing and its impact on firm’s performance. International Journal of Operations & Production Management, 22(9), 1032-1053.
  • Cheraghi, S.H., Dadashzadeh, M., & Subramanian, M. (2004). Critical success factors for supplier selection: An update. Journal of Applied Business Research, 20(2), 91-108.
  • Chin, W.W. (1998). The Partial Least Squares Approach for Structural Equation Modeling, in: Modern Methods for Business Research, G.A. Marcoulides (ed.), Lawrence Erlbaum Associates, Mahwah, NJ, pp. 295-336.
  • Das, A., Narasimhan, R., & Talluri, S. (2006). Supplier integration—finding an optimal configuration. Journal of Operations Management, 24(5), 563-582.
  • Davras, G.M., & Karaatlı, M. (2014). Otel işletmelerinde tedarikçi seçimi sürecinde AHP ve BAHP yöntemlerinin uygulanması. Hacettepe Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 32(1), 87-112.
  • De Toni, A. & Nassimbeni, G. (2000). Just-in-time purchasing: An empirical study of Operational Practices, Supplier Development and Performance. Omega, 28, 631-651. Dickson, G. W. (1966). An analysis of vendor selection systems and decisions. Journal of Purchasing, 2(1), 5–17.
  • Ehrgott, M., Reimann, F., Kaufmann, L., & Carter, C.R (2013). Environmental development of emerging economy suppliers: Antecedents and outcomes. Journal of Business Logistics, 34, 131-147.
  • Fantazy, K.A., Kumar, V., & Kumar, U. (2010). Supply management practices and performance in the Canadian hospitality industry. International Journal of Hospitality Management, 29(4), 685-693.
  • Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.
  • Gadde, L.E., & Håkansson, H. (1994). The changing role of purchasing: reconsidering three strategic issues. European Journal of Purchasing & Supply Management, 1(1), 27–35.
  • Ghoshal, S., & Moran, P. (1996). Bad for practice: A critique of the transaction cost theory. Academy of Management Review, 21(1), 13-47.
  • Göçen, S., Albeni, M., Yirik, Ş., Yildiz, H., & Akdere, M. (2017). Competition, market structure and market power within the hotel-supplier sector in Antalya, Turkey: The case for technology integration. Tourism Economics, 23(3), 647-668.
  • Hoyt, J., & Huq, F. (2000). From arms-length to collaborative relationships in the supply chain: An evolutionary process. International Journal of Physical Distribution & Logistics Management, 30(9), 750-764.
  • Huang, S.H., & Keskar, H. (2007). Comprehensive and configurable metrics for supplier selection. International Journal of Production Economics, 105(2), 510-523. Humphreys, P.K., Li, W.L., & Chan, L.Y. (2004). The impact of supplier development on buyer–supplier performance. Omega, 32(2), 131–143.
  • Kähkönen, A.K., Lintukangas, K., Ritala, P., & Hallikas, J. (2017). Supplier collaboration practices: Implications for focal firm innovation performance. European Business Review, 29(4), 402–418.
  • Kim, B.Y. (2006). The impact of supplier development on financial performance in the restaurant industry. International Journal of Hospitality & Tourism Administration, 7(4), 81-103.
  • Krause, D.R., Handfield, R B., & Scannell, T.V. (1998). An empirical investigation of supplier development: reactive and strategic processes. Journal of Operations Management, 17(1), 39-58.
  • Krause, D.R., & Scannell, T.V. (2002). Supplier development practices: product- and servicebased industry comparisons. The Journal of Supply Chain Management, 38(2), 13-21.
  • Krause, D.R., Pagell, M., & Curkovic, S. (2001). Toward a measure of competitive priorities for purchasing. Journal of Operations Management, 19(4), 497-512. Kusi-Sarpong, S., Gupta, H., & Sarkis, J. (2018). A supply chain sustainability innovation framework and evaluation methodology. International Journal of Production Research, 57 (7), 1-19.
  • Landeros, R., & Monczka, R. M. (1989). Cooperative buyer/seller relationships and a firm's competitive posture. Journal of Purchasing and Materials Management, 25(3), 9-18.
  • Lawson, B., Krause, D., & Potter, A. (2014). Improving supplier new product development performance: The role of supplier development. Journal of Product Innovation Management, 32(5), 777–792.
  • Lee, J. S., Hsu, L. T., Han, H., & Kim, Y. (2010). Understanding how consumers view green hotels: How a hotel’s green image can influence behavioural intentions. Journal of Sustainable Tourism, 18(7), 901-914.
  • Luthra, S., Govindan, K., Kannan, D., Mangla, S. K., & Garg, C. P. (2017). An integrated framework for sustainable supplier selection and evaluation in supply chains. Journal of Cleaner Production, 140, 1686-1698.
  • Modi, S. B., & Mabert, V. A. (2007). Supplier development: Improving supplier performance through knowledge transfer. Journal of Operations Management, 25(1), 42–64.
  • Menezes, V., & da Cunha, S. (2016). Eco-Innovation in global hotel chains: designs, barriers, incentives and motivations. Brazilian Business Review, 13, 108-128.
  • Önder, E., & Kabadayi, N. (2015). Supplier selection in hospitality industry using ANP. International Journal of Academic Research in Business and Social Sciences, 5(1).
  • Öztüren, A., & Sevil, G. (2009). Supply chain management as a sustainable performance booster for the accommodation enterprises: evidence from North Cyprus tourism sector. International Journal of Business and Management, 4(2), 97-111.
  • Tenenhaus, M., Amato, S., & Esposito Vinzi, V. (2004). A global goodness-of-fit index for PLS structural equation modelling. In Proceedings of the XLII SIS scientific meeting (1), 739-742.
  • Villena, V. H., Revilla, E., & Choi, T. Y. (2011). The dark side of buyer–supplier relationships: A social capital perspective. Journal of Operations Management, 29(6), 561-576.
  • Vonderembse, M.A., & Tracey, M. (1999). The impact of supplier selection criteria and supplier involvement on manufacturing performance. Journal of Supply Chain Management, 35(2), 33-39.
  • Wilkinson, L., Engelman, L., Corter, J., & Coward, M. (2000). Cluster analysis. In L. Wilkinson (Ed.), Systat 10 – Statistics I (pp. 65-124). Chicago, IL: SPSS Inc.
  • Zeller, M., & Drescher, F. (2017). Procurement management in the German restaurant industry: A comparison between top 100 restaurants and smaller restaurants. Journal of Culinary Science & Technology, 15(4), 360-379.
Year 2019, BEYKOZ AKADEMİ 2019 ÖZEL SAYI, 123 - 135, 01.10.2019
https://doi.org/10.14514/byk.m.26515393.2019.sp/123-135

Abstract

References

  • Aboelmaged, M. (2018). The drivers of sustainable manufacturing practices in Egyptian SMEs and their impact on competitive capabilities: A PLS-SEM model. Journal of Cleaner Production, 175, 207-221.
  • Ağan, Y., Kuzey, C., Acar, M.F., & Açıkgöz, A. (2016). The relationship between corporate social responsibility, environmental supplier development, and firm performance. Journal of Cleaner Production, 112(3), 1872-1881.
  • Ali, F., Rasoolimanesh, S. M., Sarstedt, M., Ringle, C. M., & Ryu, K. (2018). An assessment of the use of partial least squares structural equation modeling (PLS-SEM) in hospitality research. International Journal of Contemporary Hospitality Management, 30(1), 514- 538.
  • Apostolova, B.Z., Kroon, M.J., Richter, M., & Zimmer, I.M., (2015). Strategic purchasing: A global perspective. University of Groningen.
  • Bai, C., & Sarkis, J. (2010). Green supplier development: analytical evaluation using rough set theory. Journal of Cleaner Production, 18(12), 1200-1210.
  • Carr, A.S., & Pearson, J.N. (2002). The impact of purchasing and supplier involvement on strategic purchasing and its impact on firm’s performance. International Journal of Operations & Production Management, 22(9), 1032-1053.
  • Cheraghi, S.H., Dadashzadeh, M., & Subramanian, M. (2004). Critical success factors for supplier selection: An update. Journal of Applied Business Research, 20(2), 91-108.
  • Chin, W.W. (1998). The Partial Least Squares Approach for Structural Equation Modeling, in: Modern Methods for Business Research, G.A. Marcoulides (ed.), Lawrence Erlbaum Associates, Mahwah, NJ, pp. 295-336.
  • Das, A., Narasimhan, R., & Talluri, S. (2006). Supplier integration—finding an optimal configuration. Journal of Operations Management, 24(5), 563-582.
  • Davras, G.M., & Karaatlı, M. (2014). Otel işletmelerinde tedarikçi seçimi sürecinde AHP ve BAHP yöntemlerinin uygulanması. Hacettepe Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 32(1), 87-112.
  • De Toni, A. & Nassimbeni, G. (2000). Just-in-time purchasing: An empirical study of Operational Practices, Supplier Development and Performance. Omega, 28, 631-651. Dickson, G. W. (1966). An analysis of vendor selection systems and decisions. Journal of Purchasing, 2(1), 5–17.
  • Ehrgott, M., Reimann, F., Kaufmann, L., & Carter, C.R (2013). Environmental development of emerging economy suppliers: Antecedents and outcomes. Journal of Business Logistics, 34, 131-147.
  • Fantazy, K.A., Kumar, V., & Kumar, U. (2010). Supply management practices and performance in the Canadian hospitality industry. International Journal of Hospitality Management, 29(4), 685-693.
  • Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.
  • Gadde, L.E., & Håkansson, H. (1994). The changing role of purchasing: reconsidering three strategic issues. European Journal of Purchasing & Supply Management, 1(1), 27–35.
  • Ghoshal, S., & Moran, P. (1996). Bad for practice: A critique of the transaction cost theory. Academy of Management Review, 21(1), 13-47.
  • Göçen, S., Albeni, M., Yirik, Ş., Yildiz, H., & Akdere, M. (2017). Competition, market structure and market power within the hotel-supplier sector in Antalya, Turkey: The case for technology integration. Tourism Economics, 23(3), 647-668.
  • Hoyt, J., & Huq, F. (2000). From arms-length to collaborative relationships in the supply chain: An evolutionary process. International Journal of Physical Distribution & Logistics Management, 30(9), 750-764.
  • Huang, S.H., & Keskar, H. (2007). Comprehensive and configurable metrics for supplier selection. International Journal of Production Economics, 105(2), 510-523. Humphreys, P.K., Li, W.L., & Chan, L.Y. (2004). The impact of supplier development on buyer–supplier performance. Omega, 32(2), 131–143.
  • Kähkönen, A.K., Lintukangas, K., Ritala, P., & Hallikas, J. (2017). Supplier collaboration practices: Implications for focal firm innovation performance. European Business Review, 29(4), 402–418.
  • Kim, B.Y. (2006). The impact of supplier development on financial performance in the restaurant industry. International Journal of Hospitality & Tourism Administration, 7(4), 81-103.
  • Krause, D.R., Handfield, R B., & Scannell, T.V. (1998). An empirical investigation of supplier development: reactive and strategic processes. Journal of Operations Management, 17(1), 39-58.
  • Krause, D.R., & Scannell, T.V. (2002). Supplier development practices: product- and servicebased industry comparisons. The Journal of Supply Chain Management, 38(2), 13-21.
  • Krause, D.R., Pagell, M., & Curkovic, S. (2001). Toward a measure of competitive priorities for purchasing. Journal of Operations Management, 19(4), 497-512. Kusi-Sarpong, S., Gupta, H., & Sarkis, J. (2018). A supply chain sustainability innovation framework and evaluation methodology. International Journal of Production Research, 57 (7), 1-19.
  • Landeros, R., & Monczka, R. M. (1989). Cooperative buyer/seller relationships and a firm's competitive posture. Journal of Purchasing and Materials Management, 25(3), 9-18.
  • Lawson, B., Krause, D., & Potter, A. (2014). Improving supplier new product development performance: The role of supplier development. Journal of Product Innovation Management, 32(5), 777–792.
  • Lee, J. S., Hsu, L. T., Han, H., & Kim, Y. (2010). Understanding how consumers view green hotels: How a hotel’s green image can influence behavioural intentions. Journal of Sustainable Tourism, 18(7), 901-914.
  • Luthra, S., Govindan, K., Kannan, D., Mangla, S. K., & Garg, C. P. (2017). An integrated framework for sustainable supplier selection and evaluation in supply chains. Journal of Cleaner Production, 140, 1686-1698.
  • Modi, S. B., & Mabert, V. A. (2007). Supplier development: Improving supplier performance through knowledge transfer. Journal of Operations Management, 25(1), 42–64.
  • Menezes, V., & da Cunha, S. (2016). Eco-Innovation in global hotel chains: designs, barriers, incentives and motivations. Brazilian Business Review, 13, 108-128.
  • Önder, E., & Kabadayi, N. (2015). Supplier selection in hospitality industry using ANP. International Journal of Academic Research in Business and Social Sciences, 5(1).
  • Öztüren, A., & Sevil, G. (2009). Supply chain management as a sustainable performance booster for the accommodation enterprises: evidence from North Cyprus tourism sector. International Journal of Business and Management, 4(2), 97-111.
  • Tenenhaus, M., Amato, S., & Esposito Vinzi, V. (2004). A global goodness-of-fit index for PLS structural equation modelling. In Proceedings of the XLII SIS scientific meeting (1), 739-742.
  • Villena, V. H., Revilla, E., & Choi, T. Y. (2011). The dark side of buyer–supplier relationships: A social capital perspective. Journal of Operations Management, 29(6), 561-576.
  • Vonderembse, M.A., & Tracey, M. (1999). The impact of supplier selection criteria and supplier involvement on manufacturing performance. Journal of Supply Chain Management, 35(2), 33-39.
  • Wilkinson, L., Engelman, L., Corter, J., & Coward, M. (2000). Cluster analysis. In L. Wilkinson (Ed.), Systat 10 – Statistics I (pp. 65-124). Chicago, IL: SPSS Inc.
  • Zeller, M., & Drescher, F. (2017). Procurement management in the German restaurant industry: A comparison between top 100 restaurants and smaller restaurants. Journal of Culinary Science & Technology, 15(4), 360-379.
There are 37 citations in total.

Details

Primary Language English
Journal Section Articles
Authors

Oğuz Aksoy This is me 0000-0002-6680-0831

Melek Akın This is me 0000-0002-2996-5100

Publication Date October 1, 2019
Submission Date August 9, 2019
Acceptance Date August 31, 2019
Published in Issue Year 2019 BEYKOZ AKADEMİ 2019 ÖZEL SAYI

Cite

APA Aksoy, O., & Akın, M. (2019). THE EFFECTS OF STRATEGIC PURCHASING PRACTICES ON PERFORMANCE: AN ANALYSIS IN THE TURKISH HOSPITALITY SECTOR. Beykoz Akademi Dergisi123-135. https://doi.org/10.14514/byk.m.26515393.2019.sp/123-135
AMA Aksoy O, Akın M. THE EFFECTS OF STRATEGIC PURCHASING PRACTICES ON PERFORMANCE: AN ANALYSIS IN THE TURKISH HOSPITALITY SECTOR. Beykoz Akademi Dergisi. Published online October 1, 2019:123-135. doi:10.14514/byk.m.26515393.2019.sp/123-135
Chicago Aksoy, Oğuz, and Melek Akın. “THE EFFECTS OF STRATEGIC PURCHASING PRACTICES ON PERFORMANCE: AN ANALYSIS IN THE TURKISH HOSPITALITY SECTOR”. Beykoz Akademi Dergisi, October (October 2019), 123-35. https://doi.org/10.14514/byk.m.26515393.2019.sp/123-135.
EndNote Aksoy O, Akın M (October 1, 2019) THE EFFECTS OF STRATEGIC PURCHASING PRACTICES ON PERFORMANCE: AN ANALYSIS IN THE TURKISH HOSPITALITY SECTOR. Beykoz Akademi Dergisi 123–135.
IEEE O. Aksoy and M. Akın, “THE EFFECTS OF STRATEGIC PURCHASING PRACTICES ON PERFORMANCE: AN ANALYSIS IN THE TURKISH HOSPITALITY SECTOR”, Beykoz Akademi Dergisi, pp. 123–135, October 2019, doi: 10.14514/byk.m.26515393.2019.sp/123-135.
ISNAD Aksoy, Oğuz - Akın, Melek. “THE EFFECTS OF STRATEGIC PURCHASING PRACTICES ON PERFORMANCE: AN ANALYSIS IN THE TURKISH HOSPITALITY SECTOR”. Beykoz Akademi Dergisi. October 2019. 123-135. https://doi.org/10.14514/byk.m.26515393.2019.sp/123-135.
JAMA Aksoy O, Akın M. THE EFFECTS OF STRATEGIC PURCHASING PRACTICES ON PERFORMANCE: AN ANALYSIS IN THE TURKISH HOSPITALITY SECTOR. Beykoz Akademi Dergisi. 2019;:123–135.
MLA Aksoy, Oğuz and Melek Akın. “THE EFFECTS OF STRATEGIC PURCHASING PRACTICES ON PERFORMANCE: AN ANALYSIS IN THE TURKISH HOSPITALITY SECTOR”. Beykoz Akademi Dergisi, 2019, pp. 123-35, doi:10.14514/byk.m.26515393.2019.sp/123-135.
Vancouver Aksoy O, Akın M. THE EFFECTS OF STRATEGIC PURCHASING PRACTICES ON PERFORMANCE: AN ANALYSIS IN THE TURKISH HOSPITALITY SECTOR. Beykoz Akademi Dergisi. 2019:123-35.