From Supplier Excellence to Procurement Success: The Mediating Role of Competitive Advantage in Driving Procurement Performance
DOI:
https://doi.org/10.58344/locus.v5i1.5441Keywords:
supplier quality, supplier services, procurement competitive advantages, procurement performance, strategic procurementAbstract
In an increasingly competitive and globalized business environment, procurement has evolved from a transactional function to a strategic driver of organizational efficiency and competitive advantage. The quality and service performance of suppliers are critical, yet their pathway to influencing overall procurement success requires further empirical exploration. This research aims to analyze the influence of supplier quality and supplier services on procurement competitive advantages and their impact on procurement performance. In an increasingly competitive business environment, procurement functions play a strategic role in supporting operational efficiency and a company’s competitive edge. This research employs a quantitative approach, collecting data through surveys of procurement managers across various industry sectors. Structural Equation Modeling (SEM) is used for data analysis. The results indicate that both supplier quality and supplier services have a positive and significant impact on procurement competitive advantages. Furthermore, procurement competitive advantages significantly enhance procurement performance, particularly in terms of cost efficiency, responsiveness, and internal stakeholder satisfaction. These findings highlight the importance of building strategic relationships with high-quality and responsive suppliers to achieve superior procurement performance.
References
Balkyte, A., & Tvaronavi?iene, M. (2010). Perception of competitiveness in the context of sustainable development: facets of “sustainable competitiveness.” Journal of Business Economics and Management, 11(2), 341–365.
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Beamon, B. M., & Chen, V. (2021). Performance Measurement in Procurement. International Journal of Supply Chain Management. PDF
Beamon, B. M., & Chen, V. C. P. (2021). Performance measurement in supply chain management. International Journal of Operations & Production Management, 41(2), 123–144. https://doi.org/10.1108/IJOPM-10-2019-0667
Chin, W. W. (1998). The partial least squares approach to structural equation modeling. In G.A. Marcoulides (Ed.), Modern Methods for Business Research. Lawrence Erlbaum Associates. PDF
Chin, W. W. (1998). The partial least squares approach to structural equation modeling. In G. A. Marcoulides (Ed.), Modern methods for business research (pp. 295–336). Lawrence Erlbaum Associates.
Chung, Y., et al. (2023). Resilient Supplier Relationships during Crisis. Journal of Business Research. PDF
Cohen, J. (1988). Statistical Power Analysis for the Behavioral Sciences (2nd ed.). Lawrence Erlbaum. PDF
Etikan, I., et al. (2016). Comparison of Convenience Sampling and Purposive Sampling. American Journal of Theoretical and Applied Statistics. PDF
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. PDF
Fornell, C., & Larcker, D. F. (1981). Structural Equation Models with Unobservable Variables. Journal of Marketing Research. PDF
Gefen, D., & Straub, D. W. (2005). A practical guide to factorial validity using PLS-Graph. Communications of the Association for Information Systems, 16(1), 5. PDF
Gunasekaran, A., et al. (2020). Supply Chain Resilience and Procurement Competitiveness. International Journal of Production Economics. PDF
Gunasekaran, A., Subramanian, N., & Papadopoulos, T. (2020). Information technology for competitive advantage within logistics and supply chains: A review. Transportation Research Part E: Logistics and Transportation Review, 138, 101967. https://doi.org/10.1016/j.tre.2020.101967
Hair, J. F., et al. (2021). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Sage. PDF
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2021). A primer on partial least squares structural equation modeling (PLS-SEM) (3rd ed.). SAGE Publications.
Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2021). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (3rd ed.). Sage. PDF
Henseler, J., et al. (2020). Guidelines for PLS Path Modeling. Industrial Management & Data Systems. PDF
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. PDF
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135.
Kline, R. B. (2015). Principles and Practice of Structural Equation Modeling. Guilford Press. PDF
Li, H., & Zhang, R. (2024). Health Expenditures in Asia-Pacific: A Comparative Study. Asian Health Policy Journal. PDF
Li, Y., et al. (2021). Supplier Integration and Procurement Performance. Journal of Supply Chain Management. PDF
Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2016). Purchasing and Supply Chain Management. Cengage Learning. PDF
OECD. (2023). Government at a Glance. Organisation for Economic Co-operation and Development. PDF
Podsakoff, P. M., et al. (2019). Method Bias in Behavioral Research. Annual Review of Psychology. PDF
Qazi, A. (2024). Exploring the impact of global competitiveness pillars on sustainable development. Environmental Impact Assessment Review, 105, 107404.
Qazi, A., & Al-Mhdawi, M. K. S. (2024). Exploring the relative importance of sustainable competitiveness pillars. Journal of Cleaner Production, 443, 140986.
Sarstedt, M., et al. (2020). Unobserved Heterogeneity in PLS-SEM. Long Range Planning. PDF
Sarstedt, M., Ringle, C. M., & Hair, J. F. (2020). Treating unobserved heterogeneity in PLS-SEM: A multi-method approach. In Partial Least Squares Structural Equation Modeling (PLS-SEM) (pp. 197–215). Springer.
Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill-building approach (7th ed.). John Wiley & Sons.
WHO. (2025). World Health Statistics Report. World Health Organization. PDF
Yoo, S., & Bai, C. (2019). A decision support model to evaluate supplier performance for sustainable procurement. Journal of Cleaner Production, 224, 806–818. https://doi.org/10.1016/j.jclepro.2019.03.219
Yoo, S., & Bai, C. (2019). The Role of Procurement Flexibility in Performance. Journal of Business Logistics. PDF
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Fadhillah Syarief Hidayat, Angilbert Enggar Pragiwaksana, Nie Xuan, Darjat Sudrajat, Anita Maharani
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International (CC-BY-SA). that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
