The effect of purchasing strategy on supply management performance through supplier integration and supplier relationship management

The purchasing strategy is based on building mutual relationships with suppliers. This study examines the effect of purchasing strategy on supply management performance through supplier integration and supplier relationship management. The respondents are employees involved with the suppliers of the company daily. The findings demonstrate that purchasing strategy affects supplier relationship management and improves supplier integration and supply management performance. Consequently, supplier relationship management affects two aspects, namely supplier integration and supply management performance. The latter is also significantly affected by the former. Lastly, the finding shows that supplier relationship management and supplier integration mediate the influence of purchasing strategy on supply management performance. In conclusion, purchasing strategy improves the supply management performance both directly and indirectly.