Strategic sourcing: An empirical study among Indian construction retailers

Abstract

The Indian retail industry is an emerging sector particularly in the construction segment. Retailers play a major role in sourcing of construction materials. This paper aims to identify the factors responsible for strategic sourcing and to find the influence between them for effective business transactions among construction material retailers in India. Primary data was collected using a structured questionnaire and an adequate sample of 330 responses were obtained from the targeted respondents using convenient sampling method. Following statistical tests for validity and reliability, Structural Equation Model was used to analyse the data. Based on previous studies, five variables were identified: unstructured buying, retailer evaluation, retailer disengagement, retailer relationship management and strategic sourcing and 21 key items were considered for the survey. With the factors, a conceptual model was formulated, and hypotheses were framed and tested. Among the five hypotheses, four hypotheses were supported in the study. All variables except unstructured buying have a strong positive influence on strategic sourcing. The study's implications include creating a long-term relationship with retailers and enhancing strategic sourcing practices in the Indian construction sector. This study serves as a literature resource in strategic sourcing and adds value to construction supply chains.