Buyer-supplier relationship decline: A norms-based perspective

Abstract

Positive buyer-supplier relationships rely on a set of underlying behavioral expectations held by individuals. These ‘norms’ regulate partner behaviors through a set of implicit (dis)incentives. Despite the importance of norms, few studies consider their role in relationship decline. Drawing on an in-depth ethnography, this study focuses on norms at the inter-personal level and at the inter-firm level to uncover how these subtle social rules affect relationship decline. The study identifies three key phases of relationship decline: unawareness, divergence and degeneration. The study also considers the role of individuals' bounded reliability and its contribution to norms violations. We identify two new elements (perceptual inconsistencies and divergent schema) that appear active early in relationship decline and that contribute to other elements of bounded reliability. The findings yield a theoretically grounded, empirically informed framework of relationship decline, with direct relevance to complex buyer-supplier relationships, particularly in capital and technology intensive industries.