Enhancing Competitive Edge through Strategic Procurement: Exploring the Influence of Corporate Governance

Abstract

Strategic procurement, a vital component for organizational competitiveness, has been a subject of continuous exploration, yet it presents mixed findings in research literature. The ambiguity mainly revolves around the moderating role of corporate governance in the relationship between strategic procurement and competitive advantage. This study is dedicated to unraveling this relationship, applying the resource-based view as its theoretical underpinning. Utilizing a quantitative approach and conducting a survey on a sample of 136 employees from manufacturing firms in Ghana, the research offers substantial insights. The findings reveal that strategic procurement has a definite positive impact on competitive advantage, reinforcing the importance of deliberate procurement strategies in business performance. Furthermore, corporate governance, a vital aspect of organizational structure, not only enhances competitive advantage directly but also acts as a strengthening force on the effect of strategic procurement on competitive advantage. It highlights the synergistic relationship between governance practices and procurement strategies. These results emphasize the recommendation for organizations to embrace and implement strategic procurement practices aligned with strong and transparent governance policies. The intertwining of these two aspects may foster organizational success and sustainability. The importance of this study is accentuated by its contribution to filling existing gaps in the procurement literature, particularly regarding the moderating role of governance. By addressing this significant aspect, the research adds valuable insights that may guide both academic discourse and practical applications in the industrial sector, enhancing the understanding of strategic procurement in modern organizational dynamics.