Testing the EFQM model as a framework to measure a company’s procurement performance

This paper aims at checking whether the European Foundation for Quality\r\nManagement (EFQM) Business Excellence Model (BEM) can be used as a reference\r\nframework for designing a multi-objective performance measurement system (PMS)\r\nfor the procurement function. The procurement function is becoming increasingly\r\nrelevant in the achievement of strategic and economic objectives. Thus, understanding\r\nthe level of maturity of the practices implemented and identifying improvement\r\nopportunities are crucial. In this regard, it is necessary for companies to design a\r\nmulti-objective PMS suitable for understanding whether and to what extent the\r\nprocurement process contributes to the achievement of corporate objectives. This paper\r\ntests the validity of the EFQM BEM for the design of such functional PMS, building\r\non the assumption that the overall rationale of this model is consistent with the need to\r\njointly monitor the drivers and the outcomes of the procurement department, through a\r\nmulti-objective approach. Using a data set that reports data from 118 companies and\r\nthat is based on an international survey, our empirical analysis shows that the\r\nrelationships among the constructs of the EFQM BEM hold also in the procurement\r\nfunction and that this model can be used as a reference framework suitable for\r\nmeasuring and managing the performance of this organisational unit