Figure 1.
Hypothesised conceptual framework
Source: own processing
Table 1.
Constructs and sources
| Construct | Number of items | Source |
|---|---|---|
| Process efficiency capability | 5 | Yeung (2008) |
| Process integration capability | 3 | Yeung (2008) |
| Organizational flexibility | 8 | Zhou & Wu (2010) |
| Procurement performance | 5 | Rorich (2015) |
Table 2.
Construct validity
| Process efficiency capability | Factor loadings |
|---|---|
| SB1 <- Process efficiency capability | 0.705 |
| SB2 <- Process efficiency capability | 0.759 |
| SB3 <- Process efficiency capability | 0.689 |
| SB4 <- Process efficiency capability | 0.840 |
| SB5 <- Process efficiency capability | 0.861 |
| Process integration capability | Factor loadings |
| SB8 <- Process Integration capability | 0.510 |
| SB9 <- Process Integration capability | 0.886 |
| SB10 <- Process Integration capability | 0.942 |
| Operational Flexibility | Factor loadings |
| SC1 <- Operational flexibility | 0.842 |
| SC2 <- Operational flexibility | 0.814 |
| SC3 <- Operational flexibility | 0.832 |
| SC4 <- Operational flexibility | 0.823 |
| SC5 <- Operational flexibility | 0.680 |
| SC6 <- Operational flexibility | 0.639 |
| SC7 <- Operational flexibility | 0.718 |
| SC8 <- Operational flexibility | 0.766 |
| Procurement Performance | Factor loadings |
| SD1 <- Procurement Performance | 0.664 |
| SD2 <- Procurement Performance | 0.889 |
| SD3 <- Procurement Performance | 0.685 |
| SD6 <- Procurement Performance | 0.507 |
| SD7 <- Procurement Performance | 0.853 |
Table 3.
Reliability statistics and convergent validity
| Construct | Cronbach's alpha | Composite reliability (rho_a) | Composite reliability (rho_c) | Average variance extracted (AVE) |
|---|---|---|---|---|
| Process Integration capability | 0.758 | 0.917 | 0.837 | 0.644 |
| Process efficiency capability | 0.832 | 0.858 | 0.881 | 0.599 |
| Procurement Performance | 0.777 | 0.833 | 0.848 | 0.537 |
| Operational flexibility | 0.899 | 0.904 | 0.919 | 0.589 |
Table 4.
Discriminant validity using Fornell-Lacker criterion
| Construct | Process integration capability | Process efficiency capability | Procurement performance | Strategic flexibility |
|---|---|---|---|---|
| Process Integration capability | 0.803 | |||
| Process efficiency capability | 0.376 | 0.774 | ||
| Procurement Performance | 0.393 | 0.746 | 0.733 | |
| Operational flexibility | 0.476 | 0.828 | 0.690 | 0.768 |
Table 5.
Multicollinearity statistics using Variance Inflation Factor (VIF)
| Construct | VIF | Construct | VIF | Construct | VIF |
|---|---|---|---|---|---|
| SB1 | 1.554 | SC1 | 6.318 | SD1 | 1.801 |
| SB10 | 2.082 | SC2 | 5.512 | SD2 | 4.055 |
| SB2 | 2.159 | SC3 | 5.042 | SD3 | 1.925 |
| SB3 | 2.223 | SC4 | 3.688 | SD6 | 1.722 |
| SB4 | 2.692 | SC5 | 2.643 | SD7 | 2.999 |
| SB5 | 2.567 | SC6 | 2.361 | ||
| SB8 | 1.295 | SC7 | 2.246 | ||
| SB9 | 1.887 | SC8 | 4.462 |
Figure 2.
Structural model
Source: own processing
Table 6.
Hypothesis testing
| Hypotheses | β-value | t-statistics | p-values |
|---|---|---|---|
| Process Integration capability -> Procurement Performance | 0.095 | 1.255 | 0.210 |
| Process efficiency capability -> Procurement Performance | 0.564 | 5.074 | 0.000 |
| Operational flexibility x Process Integration capability -> Procurement Performance | -0.083 | 1.439 | 0.150 |
| Operational flexibility x Process efficiency capability -> Procurement Performance | -0.088 | 2.368 | 0.018 |