ABSTRACT:- The purpose of this paper is to explore the different patterns of purchasing function configuration, and to show statistically the relationship between such patterns and organizational performance using Lebanese firms. This will ensure different competitive advantages affecting positively the performance outcome of the Lebanese organisations. To examine the purchasing functions and to assess their relationships with the performance outcomes. Two reesearch questions were used concerning the classification of the purchasing functions and their effect on performance outcomes followed by two hypotheses using primary data. The variables were derived from the literature review using the Performance Outcomes (PO) as the dependent variable and the Purchasing Clusters (PC) to be the independent variable. Data were collected via a paper-based, telephone, and email survey questionnaire. Using “SPSS”, different statistical techniques such as Principle Component Analysis and Factor Analysis were used to investigate the relationships among variables and to illustrate the impact of PC on PO in the Lebanese organizations As a result of the data presented and analyzed, we observe that the first research question and hypothesis were found to be significant. The positive correlation between PC and PO was also statistically significant; hence the Performance clusters in the studied Lebanese organizations positively and significantly affects performance outcome which answers the second research question and hypothesis. Moreover, it is noted that the majority of top managements in these companies did not realize the importance of the process design to gain a competitive advantage; as well as the management did not conduct any cultural or organizational changes in order to develop purchasing network, implement a quick ordering system, and encourage the supplier involvement in increasing the product sales. This research establishes the importance of the Lebanese trading and management in ensuring quality of services and provides the best of these in the area to help reduce inefficient procedures and achieve optimal use of resources helping the Management and the Industrial engineering decisions. It has argued that purchasing functions affect the performance outcome and should be well developed, monitored, and evaluated in order to increase organizational performance outcome. An analysis has been presented to allow managers and the Quality Control Department to understand the importance of the characteristics and their effect on the organizational performance in order to give more attention and develop these characteristics. This paper has a number of implications for managers at the different levels of the firm. Scholars and practitioners agree that it is vitally important for firms to develop their purchasing functions and follow a set of practices and procedures. This paper tested directly the relationships between the purchasing clusters and the performance outcomes in 95 Lebanese organizations/industries. It provided a clear understanding of the statistically significant items that characterize the purchasing clusters. It also quantified the positive correlations between the selected variables used. The findings are useful for practitioners seeking to improve the performance and standing of the purchasing function through identification of the characteristics and potential limitations faced at each phase.

Keywords:- Procurement, Purchasing Clusters, Performance Outcome, Internal Integration, Industrial Engineering, Strategic Planning, Classification and Factor Analysis.