Impact of the status and maturity of the purchasing function on the performance of companies in terms of cost saving: a PLS approach

Abstract

The purpose of this article is to empirically examine the impact of the status and maturity of the purchasing function on the performance of companies in terms of cost savings. Accordingly, we have conducted a survey on 74 Moroccan companies. The data were analysed using the structural equation method (PLS approach). The results show that a high purchasing status does not have a significant direct effect on the performance in terms of cost savings. Nevertheless, after including strategic purchasing practices and/or the degree of maturity as mediating variables, the effect of status on company performance becomes significant. These findings have important practical and theoretical implications as they provide strong arguments for the importance of the status of the purchasing function in creating value. Business leaders should recognise the importance of status and support the efforts of buyers in developing more strategic purchasing practices.