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The Influence Of Product Life Cycle On The Efficacy Of Purchasing Practices

A. Doha, Ajay Das, Mark Pagell
Published 2013 · Business

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Purpose – The purpose of this study is twofold. First, to examine the contingent role of the product life cycle on the efficacy of purchasing practices. Second, to use the results of the first investigation to explore the adequacy of the profit‐maximization framework for explaining purchasing decision making. This second investigation is motivated by growing evidence on the role of institutional factors in explaining supply chain management practices.Design/methodology/approach – Survey data from a sample of North American manufacturing firms, across four standard industry sectors, are analysed using ANOVA and linear regression, to examine the hypotheses.Findings – The results indicate that product life cycle has a contingent effect on the efficacy of some purchasing practices but not on others. Interestingly, the results suggest that the profit‐maximization framework is capable of explaining only some purchasing decisions but not others; firms adopt certain purchasing practices in certain product life cy...
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