The effects of strategic purchasing practices on performance: an analysis in the Turkish hospitality sector

Official URL: http://dx.doi.org/10.14514/byk.m.26515393.2019.sp/123-135

In this study, we examine the impact of strategic purchasing practices on hotel performance. In order to test our hypotheses, we use survey data from 71 hotels in Turkey. First, we perform a cluster analysis and identify two types of purchasing strategies based on supplier selection criteria: traditional vs. strategic. Then, via partial least squares (PLS) method, we test the effect of long-term relationships, supplier development and environmental supplier development on hotel performance. Our results show that long-term relationships have a negative effect on both market and financial performance. Additionally, we find that supplier development has a positive effect on performance, but only for hotels with a traditional purchasing strategy. Interestingly, we find that environmental supplier development has a positive effect on financial performance in hotels with a traditional purchasing strategy, but a positive effect on market performance in hotels with a strategic purchasing strategy.