THE EFFECTS OF STRATEGIC PURCHASING ON ORGANIZATION PERFORMANCE THROUGH NEGOTIATION STRATEGY AND BUYER-SUPPLIER RELATIONSHIP

The present work examined the empirical relationship between strategic purchasing on organization performance
through negotiation strategy and buyer-supplier relationship. Data were obtained using questionnaires distributed
to 80 food and beverage companies domiciled in East Java of Indonesia. The manager of purchasing represented
each company. Statistical analysis was performed using partial least square (PLS) technique. The result reveals
that negotiation strategy and buyer-supplier relationship mediate the effect of strategic purchasing on
organization performance. Strategic purchasing also influences organization performance directly. Furtherly,
Negotiation strategy and buyer-supplier relationship influence organization performance and negotiation strategy
have a more significant impact on organization performance than has the buyer-supplier relationship.