Does purchasing recognition help or hinder purchasing quality performance in developing market SMEs? Effects of resource conditions

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Authors

Essuman, Dominic
Anin, Emmanuel Kwabena
Muntaka, Abdul Samed

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Publisher

Elsevier

Abstract

Prior studies contend that top managers’ ability to harness purchasing recognition to enhance purchasing quality performance is crucial for boosting competitive advantage. However, there are doubts about the universal benefits of purchasing recognition, particularly in developing market small and medium enterprises (SMEs). This research uses upper echelons theory (UET) to move the literature forward by suggesting that the purchasing recognition-purchasing quality performance link depends on varying conditions of financial resource and environmental munificence. Consistent with the study hypotheses, survey data from one hundred and thirty-eight SMEs in Ghana indicates that financial resource and environmental munificence positively moderate the relationship between purchasing recognition and purchasing quality performance. In particular, the study results show that, under low and high conditions of financial resource and environmental munificence, the link between purchasing recognition and purchasing quality performance is significantly negative and positive, respectively. Theoretical and practical implications alongside the limitations of the results are discussed.

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Keywords

Small and medium-sized enterprises (SMEs), Upper echelons theory (UET), Purchasing recognition, Quality performance, Financial resource, Environmental munificence, Developing market SMEs

Sustainable Development Goals

Citation

Essuman, D., Anin, E.K. & Muntaka, A.S. 2021, 'Does purchasing recognition help or hinder purchasing quality performance in developing market SMEs? Effects of resource conditions', Journal of Purchasing and Supply Management, vol. 27, no. 5, art. 100717, pp. 1-11.