The strategic fit between strategic purchasing and purchasing involvement: the moderating role of leadership styles

Abstract

Purpose – The aim of this study is to investigate and examine the impact of strategic purchasing practices on strategic fit by analysing the influence of strategic purchasing practices on purchasing involvement in business strategy formulation with path-goal theory leadership styles as moderators. Design/methodology/approach – Using survey data from 320 respondents representing 64 manufacturing firms in the Middle East, we measure strategic purchasing practices, purchasing involvement, leadership styles, and strategic fit of the purchasing function with business strategy. Findings – Building on the path-goal approach to leadership, results suggest that participative, supportive, and achievement-oriented leadership styles are pure moderators, while directive leadership style is a quasi-moderator in boosting the relationship between strategic purchasing practices and strategic purchasing involvement. Research limitations/implications – Limitations of the sampling methodology and sample size restricts the scope for generalising the hypotheses. Further, data were collected only from manufacturing companies. The paper provides managerial implications on purchasing involvement in business strategy formulation and the different roles of leadership styles. Originality/value – This is the first scholarly work to examine the different leadership styles as a moderator that affects the strategic involvement and status of strategic purchasing.