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

Year 2019, , 123 - 135, 01.10.2019

Oğuz Aksoy Melek Akın

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.

Keywords

Hospitality Sector, Supplier Development, Supplier Relationship, Supplier Selection, Survey

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