Industrial Procurement Management Efficiency Guidelines: Perform Excellence Through Organisational Change Strategies




Procurement Management, Procurement Efficiency, Organisational Change, Internal Control Process, Business Alliance Networks, Structural Equation Model


Purpose: The objective of this research was to use structural equation modelling to illustrate guidelines for enhancing procurement management efficiency in the industrial business sectors.


Theoretical framework:  The conceptual framework was developed based on relevant studies and incorporated elements from procurement excellence models established by renowned organisations, including McKinsey’s successful procurement operating model (2018), BCG’s five pillars of procurement excellence (2019), and PwC’s operating procurement model (2019).


Design/methodology/approach: This study utilised a mixed-methods approach, combining qualitative (in-depth interviews and focus group discussions) and quantitative (survey) research methods. The quantitative data was collected through a questionnaire consisting of four parts, which was administered to 500 executives from industrial businesses. The data was analysed using descriptive, inferential, and multivariate statistical techniques.


Findings:  The guidelines thoroughly examined four key elements: organisational change, technology management, internal control process, and business alliance networks - influencing procurement management efficiency in Thailand. This analysis used confirmatory factor analysis, second-order confirmatory factor analysis, and structural equation modelling. After modification, the final model included 23 observed variables under six hypotheses and was evaluated using congruence evaluation criteria to ensure its effectiveness.


Research, Practical & Social implications:  The researchers suggested that future studies focus on the specific characteristics of each industrial type, such as the automobile sector, food and beverage industry, or emerging S-curve and new S-curve segments. The future research results would allow for a more in-depth analysis of the unique factors that impact procurement management efficiency within each industry.


Originality/value:  The findings suggest that the developed models can serve as valuable guidelines for industrial businesses looking to improve their procurement management systems and implement effective strategies. By adopting these models, businesses may enhance their profitability and optimise their use of resources, thereby improving overall efficiency.


Download data is not yet available.


Ahmad, S. A., & Sulaiman, G. A. (2023). The role of attributes based costing technology in achieving sustainable development goals. International Journal of Professional Business Review, 8(2), e01105.

Alia, A., & Ahmed, S. (2022). Big data analytics and supply chain performance: The mediating role of supply chain capabilities and innovation. Management Science Letters, 12(4), 307–320.

Almeida, J. M. S. de, da Costa, P. R., Pires, A. de C., & Pigola, A. (2021). Relational capability: A Prospective study at Brazilian technological-base enterprises in biotech industry. International Journal of Professional Business Review, 7(1), e0233.

Alvesson, M., & Sveningsson, S. (2016). Changing organisational culture cultural: Change work in progress, 2nd ed., Routledge, Oxford.

Arbuckle, J.L. (2016). IBM SPSS AMOS 24 user’s guide. Retrieved 21 April 2020, from

Bag, S., Wood, L. C., Mangla, S. K., & Luthra, S. (2020). Procurement 4.0 and its implications on business process performance in a circular economy. Resources, Conservation and Recycling, 152, 104–502.

Bateman, T.S., Snell, S.A., & Konopaske, R. (2017). Management: Leading and collaborating in a competitive world, 12th ed., McGraw-Hill, New York.

Biazzin, C., & Carvalho, L.C. (2019). Big Data in procurement: The role of people behavior and organisation alignment. Dimensión Empresarial, 17(4).

Boston Consulting Group. (2019). Five pillars of procurement excellence. Retrieved 3 October 2019, from

Chakraborti, D. (2019). Enabling the procurement function to assume a strategic role through automation. Briefing Paper: Harvard Business School. Retrieved 10 December 2020, from

Chinda, T. (2020). Factors affecting construction costs in Thailand: A structural equation modelling approach. International Journal of Construction Supply Chain Management, 10(3), 115–140.

Committee of Sponsoring Organisations of the Treadway Commission. (2020). Blockchain and internal control, Retrieved 6 March 2021, from

Comrey, A.L., & Lee, H.B. (2013). A first course in factor analysis. 2nd ed., Psychology Press, Hove.

Dankaew, T., & Silpcharu, T. (2020). Guidelines for business advantage management for export of Thai industrial products. ABAC Journal, 40(2), 53–73. abacjournal/article/view/4757/2740

Deloitte. (2018). The Deloitte global chief procurement officer survey 2018. The Creative Studio at Deloitte, London.

Engel, R.J., & Schutt, R.K. (2017). The practice of research in social work, 4th ed., SAGE, California.

Fariz, F. (2022). The effect of supplier integration, manager transformational leadership on supply chain Performance. Uncertain Supply Chain Management, 10(3), 993–998. 2022.2.014

Flanagan, R., & Jewell, C. (2018). New code of estimating practice. John Wiley and Sons, New Jersey.

Geissbauer, R., Weissbarth, R., & Wetzstein, J. (2016). Procurement 4.0: Are you ready for the digital revolution? Retrieved 15 September 2019, from

Ghossein, T., Asif Mohammed, I.A., & Saliola, F. (2018). Public procurement and the private business sector: Evidence from firm-level data. The Policy Research Working Paper Series of World Bank Group.

Grant, D.B., Trautrims, A., & Wong, C.W. (2017). Sustainable logistics and supply chain management: Principles and practices for sustainable operations and management. 2nd ed., Kogan, New York.

Henshall, D. (2015). Procurement capability and operating model. Retrieved 23 October 2019, from

Hofbauer, G. (2019). Blockchain applications in business processes exemplified for procurement. Economics and Business, 3(2019), 134–147.

Hopkin, P. (2017). Fundamentals of risk management understanding, evaluating, and implementing effective risk management. 4th ed,. Kogan Page, London.

Johnson, P.F. (2020). Purchasing and supply management, 16th ed., McGraw-Hill, New York.

Johnson, P.F., & Flynn, A. (2015). Purchasing and supply management, 15th ed., McGraw-Hill, New York.

Lintukangas, K., Kähkönen, A.K., & Hallikas, J. (2019). The role of supply management innovativeness and supplier orientation in firms’ sustainability performance. Journal of Purchasing and Supply Management, 25(4), 100558.

Manucharyan, H. (2021). Multi-criteria decision making for supplier selection: A literature critique. Independent Journal of Management and Production, 12(1), 329–352. /ijmp.v12i1.1265

Masudin, I., Aprilia, G.D., Nugraha, A., & Restuputri, D.P. (2021). Impact of e-procurement adoption on company performance: Evidence from Indonesian manufacturing industry. Logistics, 5(1), 1–16.

McKinsey. (2015). Finding the right size for the purchasing organisation. Retrieved 25 October 2020, from ng-organization

McKinsey. (2018). A next-generation operating model for source-to-pay. Retrieved 25 October 2020, from

Miethlich, B., Belotserkovich, D., Abasova, S., Zatsarinnaya, E., & Veselitsky, O. (2022). Transformation of digital management in enterprises amidst the COVID-19 pandemic. Institutions and Economies, 14(1),


Mokhtar, S., Bahri, P. A., Moayer, S., & James, A. (2019). Supplier portfolio selection based on the monitoring of supply risk indicators. Simulation Modelling Practice and Theory, 97(2019): 101955.

Mulyaningsiha, Herminaa, T., Akbara, G.G., & Ulumudina, A. (2021). Analysis of the effect of supplier-company’s long-term commitment, communication, and strategy on supply chain performance in manufacturing sector. Uncertain Supply Chain Management, 9(3), 513–520. 10.5267/j.uscm.2021.6.011

Munyimi, T.F. (2019). The role of procurement quality controls in procurement performance in the energy sector in Zimbabwe. Cogent Engineering, 6(1), 1631563. 2019.1631563

Murphy, P.R., & Knemeyer, A.M. (2018). Contemporary logistics. 12th ed., Pearson Education, London.

Office of Industrial Economics. (2021). Industrial productivity report. Retrieved 11 January 2022, from

Office of the National Economic and Social Development Council. (2021). Input-output table of Thailand. Retrieved 9 May 2021, from

Office of SMEs Promotion. (2020). MSME White paper 2020, Utopia Media International, Bangkok.

Parniangtong, S. (2016). Supply Management Strategic Sourcing. Springer Science+Business Media, Singapore.

Pazirandeh, A. (2016). Chapter 5.1: Procurement in humanitarian supply chains. Supply chain management for humanitarians: Tools for Practice, Kogan Page, London.

Peterman, A., Kourula, A., & Levitt, R. (2020). Organisational roles in a sustainability alliance network. Business Strategy and the Environment. 29(8), 3314–3330.

Purchasing and Supply Chain Management Association of Thailand. (2017). Training materials for logistics management and organisation sustainability, PSCMT, Bangkok.

Quang, H.T., Sampaio, P., Carvalho, M.S., Fernandes, A.C., Binh An, D.T., & Vilhenac, E. (2016). An extensive structural model of supply chain quality management and firm performance. International Journal of Quality and Reliability Management, 33(4), 444–464.

Rezaei, J., & Lajimi, H.F. (2019). Segmenting supplies and suppliers: bringing together the purchasing portfolio matrix and the supplier potential matrix. International Journal of Logistics Research and Applications, 22(4), 419-436.

Saputra, H.T., & Putra, Y.H. (2020). Enterprise architecture information system planning for the procurement of goods and services. Advances in Economics, Business and Management Research, 112(2020), 104–109.

Silpcharu, T. (2020). Research and statistics analysis: SPSS and AMOS, 18th ed., Business R&D, Bangkok.

Srihabut, N., Jariyapoom, T., & Roopsing, T. (2021). Strategies for value-added creation in Thai rice industry. Academy of Strategic Management Journal, 20(5), 1–11. /articles/Strategies-for-value-added-creation-in-thai-rice-industry-1939-6104-20-5-863.pdf

Stek, K., & Schiele, H. (2021). How to train supply managers–necessary and sufficient purchasing skills

leading to success. Journal of Purchasing & Supply Management, 27(2021), 100700. 10.1016/j.pursup.2021.100700

Stockemer, D. (2019). Quantitative methods for the social sciences: A practical introduction with examples in SPSS and Stata, Springer International, Cham.

Sukhawatthanakun, K. (2022a). Thai consumer perspective on marketing ethics of consumer products. Humanities and Social Sciences Letters, 10(2), 213–222.

Sukhawatthanakun, K. (2022b). Marketing channels of chili in the upper northeastern region of Thailand. Kasetsart Journal of Social Sciences, 43(3), 637–644.

Sutrisno, Fachrunnisa.O., & Widodo. (2022) The effectiveness of directing optional activities as capitalfor small and medium enterprises based on digitalisation in the crisis. International Journal of Professional Business Review, 7(2), e0468.

Thomas, B.C. (2019). University-industry collaboration and regional innovation systems in east Asia: An overview. International Journal of Research in Business Studies and Management, 6(2), 1–19.

Tri, H.T., Tran, P.T.K., & Huu, T.N. (2020). Assessing factors affecting the effectiveness of internal control systems in construction enterprises in the Ba Ria-Vung Tau Province, Vietnam. Institutions and Economies, 12(4), 3–25.

Utit, C., Abdul, M.A., & Saari M.Y. (2022). Weak interlinkages between SMEs and non-SMEs in Malaysia and Thailand: What do we know so far? International Journal of Economics and Management, 16(1), 135–146. SMEs.pdf

Vlahakis, G., Kopanaki, E., & Apostolou, D. (2019). Proactive decision making in supply chain procurement. Journal of Organizational Computing and Electronic Commerce, 30(1), 28–50.

Wambua, C. M., & Kagiri, A. (2019). Effect of procurement practices on organisational performance of multinational corporations in Kenya: A case of Oracle Technology Kenya Limited. The Strategic Journal of Business and Change Management, 6(2), 1061–1078. article/view/1171/1140

Watts, G. (2020). Forgetting social value and other good practices in construction supply chains: Procurement in pandemics. International Journal of Construction Supply Chain Management, 10(4), 221–233.

Weele, A.V. (2018). Purchasing, and Supply Chain Management, 7th ed., Cengage, Hampshire.




How to Cite

Sukhawatthanakun, K., Roopsing, T., & Silpcharu, T. (2023). Industrial Procurement Management Efficiency Guidelines: Perform Excellence Through Organisational Change Strategies. International Journal of Professional Business Review, 8(4), e01770.