Embracing supply base complexity: the role of strategic purchasing

This paper investigates the link between supply base complexity (SBC) and purchasing performance using data from 209 firms in Turkey. Regarding detail SBC, the results suggest that supplier differentiation and spatial complexity reduce purchasing performance in firms with low and high strategic purchasing, respectively. In contrast, horizontal complexity and supplier interaction improve purchasing performance in firms with high strategic purchasing. Regarding dynamic SBC, the results illustrate that both delivery complexity and supplier instability reduce performance, but only in firms with low strategic purchasing. The findings highlight that SBC is not always detrimental and the outcomes are contingent on strategic purchasing.