International Journal of Purchasing and Materials Management

Supply-Based Strategies, Human Resource Initiatives, Procurement Leadtime, and Firm Performance Members Only Content

The role of procurement leadtime (PLT) in time-based competition (TBC) has received little attention in procurement and operations literature. This article examines the relationship of procurement leadtime to overall firm performance and identifies key antecedents of procurement leadtime performance. The research focuses on first-tier suppliers to the "Big 3" automobile manufacturers in North America. Linkages among supply-based strategies, human resource (HR) initiatives, procurement leadtime performance, and overall business performance are tested empirically. The study shows that procurement leadtime is significantly related to overall firm performance, especially market share and market share growth. The supply-based strategy of standardization and the HR strategy of employee empowerment are shown to be key drivers of procurement leadtime performance. Also, the combined use of these strategies is shown to have a synergistic effect on procurement leadtime.

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