The Influence of Organizational Structure Characteristics on International Purchasing Performance in Different Sourcing Locations

Posted: 7 Mar 2016 Last revised: 20 Oct 2016

Tabea Tressin

Hamburg University of Technology TUHH

Nicole Franziska Richter

Hamburg University of Technology

Christopher Schlaegel

Otto-von-Guericke-University Magdeburg

David Midgley

INSEAD - Marketing

Date Written: March 3, 2016

Abstract

This study provides a detailed understanding of how firms structure their organization to foster international purchasing (IPP) and firm performance (FP) in different purchasing locations.

It proposes a moderated mediation model in which organizational structure characteristics are associated with IPP and FP building on transaction cost economics and the resource-based view. We posit that the relationships are contingent on the national context of the purchasing location.

Taking a sample of German firms, we test the model using structural equation modeling. We find that centralization, specialization and configuration are positively associated with IPP which is positively related to FP. The specialization and PP relationship is stronger for purchasing locations in developing countries, while the configuration and IPP relationship is stronger for those in industrialized economies.

Keywords: International purchasing performance, global purchasing, national context, organizational structure, firm performance

Suggested Citation

Tressin, Tabea and Richter, Nicole Franziska and Schlaegel, Christopher and Midgley, David, The Influence of Organizational Structure Characteristics on International Purchasing Performance in Different Sourcing Locations (March 3, 2016). INSEAD Working Paper No. 2016/13/MKT. Available at SSRN: https://ssrn.com/abstract=2741558 or http://dx.doi.org/10.2139/ssrn.2741558

Tabea Tressin

Hamburg University of Technology TUHH ( email )

Schwarzenbergstrasse 95
Hamburg, DE Hamburg 21073
Germany

Nicole Franziska Richter

Hamburg University of Technology ( email )

Schwarzenbergstrasse 95
Hamburg, DE Hamburg 21073
Germany

Christopher Schl├Ągel

Otto-von-Guericke-University Magdeburg ( email )

Universitaetsplatz 2
Magdeburg, 39016
Germany

David Midgley (Contact Author)

INSEAD - Marketing ( email )

Boulevard de Constance
Fontainebleau, 77305
France
+33 1 60 71 26 38 (Phone)
+33 1 60 74 55 00 (Fax)

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