Buyer perceptions on the buyer-supplier collaborative relationship and performance: a service example

Abstract

Increasing need to improve efficiency and/or productivity and achieve competitive advantage causes organisations to look into collaborative relationships with their supply chain partners. This study examines how buyer-supplier collaboration contributes to relationship outcomes as measured by supplier delivery performance, buyer perceived business performance and revenue. Surveys collected from 57 managers of a US service organisation reveal the significance of knowledge transfer in improving buyer performance and supplier delivery performance. Also, knowledge transfer is a key mediator explaining the association between supplier relationship management and performance constructs when buyer-supplier relationship length is added to the model. If buyer and suppliers are in a trustworthy and sustainable relationship, they will be more likely learn from each other, respond to each other’s concerns and problems that in turn improve business performance. Buyer and suppliers can use these results to better understand the implications of knowledge management in the supply chain.