The Influence of Purchasing Strategies on Company Performance: Oil and Gas Engineering and Construction Company Case Study

This research tries to determine the impact of various supply chain strategies and the impact of the company s interactions with suppliers on the firm s performance. The effect of these factors on the company s performance is analyzed using the structural equation modeling approach by partial least squares method (PLS). One of the main goals of a supply chain is to use a method that can bring the most and the best performance to the company. This paper reports on an applied research using survey method. 49 questions are designed to evaluate the variables. 7-point Likert scale is used to measure the questionnaire items. 300 completed questionnaires are collected and confirmed. In order to select the appropriate statistical method for testing the hypotheses, first the normality of the distribution of data has been tested using the Kolmogorov Smirnov method. Then, according to the results of this test, the nonparametric Spearman correlation coefficient and the structural equation modeling are used to analyze the data. The result of the hypothesis test shows a significant relationship between the variables. This study shows that the presence of a competitive business leads the company to invest in different situations in the supply chain, which improve company’s services and performance. In order to improve the company’s performance, managers also need to feel the need for long-term strategies for the supply chain that fits the overall business strategy rather than mid-term strategies. Researches show that it is very difficult to develop a single strategy in the purchasing process that can act as an all-inclusive strategy. Limitation to access company’s financial information is the main limitation of this research. Two types of purchase strategies were found in this research which could be the guide for Oil & Gas companies to impellent as their future purchasing strategies. The research has allowed testing and