A conceptual model of the alignment-performance link in PSM
The previous chapter outlined that PSM’s ability to contribute to competitive advantage critically depends on the alignment of purchasing strategy and practices with the firm’s business strategy. Given the lack of research on this topic, this chapter will now develop a model for empirically investigating the alignment-performance link in PSM. First, the conceptual model including detailed hypotheses regarding interrelationships between different strategy levels and their performance implications will be derived in section 3.1. Next, the key constructs used in this model will be defined in section 3.2. Last, an analytical approach for testing the model will be presented in section 3.3.
KeywordsBusiness Strategy Business Unit Supply Management Functional Strategy Strategic Group
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