Abstract

Summary In this paper, we examine the relationship between buyer–supplier partnership quality, and supply chain performance, in the presence of supply and demand side risks and environmental uncertainty. Based on the theoretical underpinnings of resource-based view, relational capital theory, and transaction cost economics, we propose a positive relationship between partnership quality and supply chain performance, which is strengthened in the presence of high demand and supply-side risks, but weakened in the presence of high environmental uncertainty. Empirical evidence, based on the survey data of 127 US firms supports a majority of our arguments. We discuss theoretical and practical ramifications of these findings and offer future avenues of research.

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