Critical factors affecting purchasing and supply chain management performance: An empirical study of manufacturing enterprises in mainland China

Abstract

Nowadays, traditional production and business models are becoming un-adaptable to the new realities. Chinese manufacturing enterprises are under pressure from all areas of supply chain. Purchasing in Chinese manufacturing is facing higher development demands and an unprecedented challenge. This study aims to examine the critical factors affecting purchasing and SCM in Chinese manufacturing such as purchasing personnel, purchasing policies and quality management practices in purchasing. Their contributions on improvement of purchasing and SCM were analysed through the collected data from 124 purchasing staff in Chinese manufacturing enterprises. According to the findings, there is sufficient evidence to suggest that all the three critical factors have positive, significant contributions to purchasing and SCM performance. "Quality management practices in purchasing" makes greatest contribution to purchasing and SCM performance followed by "Purchasing policies" and "Purchasing personnel". We have suggested few recommendations for future research and Chinese manufacturing enterprises at the end of this study.