On the relationship between purchasing integration and purchasing decision-making speed

Purpose – First, this study expands knowledge on the strategic decision process dimension decision-making speed by analyzing decision-making speed and two possible antecedents in a purchasing context. Second, it takes an additional step toward clarifying the relationship between strategic and lateral integration. Specifically, the purpose of this paper is to analyze the potential mediating effect of lateral purchasing integration on the relationship between strategic purchasing integration and purchasing decision-making speed. Design/methodology/approach – This research analyzes survey data of 152 firms from Austria, Germany, and Switzerland using covariance-based structural equation modeling. Findings – The results of the structural equation model provide strong support for the hypothesized relationships. Strategic purchasing integration drives lateral purchasing integration, which in turn positively influences purchasing decision-making speed. Research limitations/implications – This study focusses solely on internal types of integration. A logical next step would be to further enrich the model by including external dimensions, such as supplier or customer integration. Practical implications – This study should help managers gain a better understanding of the relationship between strategic and lateral purchasing integration, highlighting their positive impact on decision-making speed. Decision-making speed is particularly important for companies operating in volatile markets and time-constrained business environments. Originality/value – This study offers new insights into the theoretical and empirical connection between intra-organizational purchasing integration, unpacked as strategic purchasing integration and lateral purchasing integration, and purchasing decision-making speed. Furthermore, it offers insights into decision-making speed in a purchasing context.