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1、PURCHASINGSTRATEGYANDPERFORMANCERELATIONSHIPINMALAYSIANSMESABSTRACTThegrowingconcernforpurchasingeffectivenessandeffectivepurchasingstrategyhaveattractedmuchattentionintheliterature.Inparticular,however,thereviewofthesmallbusinessliteraturesuggestsveryfewempiricalstudieshav
2、eattemptedtoestablishthelinkagebetweenpurchasingstrategyandperformanceofsmallandmedium-sizedenterprises(SMEs),especiallyintheMalaysiancontext.Thisstudyinitiatesanattempttoaddressthisissue.Thedataforthestudywascollectedfrom92SMEsoperatinginthemanufacturingsector.Theresultsof
3、thecorrelationanalysesindicatesignificantpositiverelationshipsbetweensingleandmultiplesourcingstrategiesandtheperformanceoftheSMEssurveyed.INTRODUCTIONPurchasinginamanufacturingfirminvolvesnegotiatingaswellasbuyingfromcurrentandpotentialsuppliers.Purchasingprovidesthemanufa
4、cturingfirmwithqualityrawmaterials,parts,factoryandofficesupplies,andservicesforuseintheproductioncyclerequiredforthedaytodayoperationsofitsbusiness.Througheffectiveandefficientpurchasingfunction,themanufacturingfirmisabletomakeitssales,keepsitsproductioninoperations,preser
5、vesitsplantandequipment,reducesitsoperatingcosts,enhancesitsproductivity,andimprovesitsprofitability.Moreimportantly,maintainingpurchasingeffectivenessisessentialforbusinessorganizationsoperatingincompetitiveenvironment.However,inthecontextofincreasinglycompetitivebusinesse
6、nvironment,sustaininganeffectiveandefficientpurchasingfunctionrequiresthattheorganizationformulatesandimplementsaneffectivepurchasingstrategy.Forinstance,tosustaininthedynamicglobalbusinesssystem,amanufacturingfirmneedsaneffectivepurchasingstrategythatemphasizesonidentifyin
7、ganddevelopingglobalsourcesforprocurementofqualityaswellascheaprawmaterialsandpartscomponents(PalaniswarniandLingaraj,1994;andNarasimhanandCarter(1998).Overtheyears,increasingnumbersofsmall,mediumandlargefirmsareacknowledgingtheneedfortheirfirmstoadopteffectivepurchasingstr
8、ategies.Thisisbecausemoreandmorebusinessorganizationsarerealizingthateffectivepurc
