Classification and effect of procurement on organizational performance in Lebanon

Abstract

The purpose of this research was to investigate the different purchasing clusters at the Lebanese organizational performance. In order to achieve this research objective, two research questions were addressed. (1) How are purchasing functions within Lebanese organizations classified? (2) How do purchasing functions at the Lebanese organizations affect performance outcomes? These research questions have been translated into the following two hypotheses (H1) Purchasing functions within Lebanese Organizations can be classified based on their level of involvement in strategic planning, status in the eyes of top management, degree of internal integration, and purchasing skills. (H2) Based on different configurations of purchasing characteristics, different purchasing functions will have higher levels of performance outcomes. To answer the research questions and to test the hypotheses, analyses were conducted based on collected data from Lebanese organizations. The researcher developed a research instrument with 19 indicators to measure performance outcomes (PO) as the dependent variable, and 18 indicators to measure purchasing clusters (PC) as the independent variable. Data were collected via a paper-based, telephone, and email survey questionnaire. Using SPSS, descriptive testing, principal component analysis, and linear regression techniques were used to investigate the relationships among variables and to illustrate the impact of PC on PO at the Lebanese organizations. The results presented that the hypothesized measurement models are valid and reliable to answer the research questions. Findings supported the two hypotheses and showed a statistically significant relation among the two studied variables. As a conclusion, this study verified the importance of purchasing clusters in positively influencing organizational performance at the Lebanese organizations.