Buyers' perspectives of buyer–seller relationship development

Abstract

Long-term buyer–seller relationships have been a focus of research for several years. The present study draws on interaction/network theory to test a model examining the interaction mechanisms and relationship characteristics of buyer–seller relationships during four progressive phases of relationship development. Data from 174 members of the Institute for Supply Management offer empirical support for the associations proposed in the model, as well as some surprising results. One of the most useful findings of the research is that the patterns of these associations vary as buyer–seller relationships progress through the four phases of relationship development. Specifically: in the awareness phase, joint problem solving increases buyer uncertainty; in the exploration phase, communication quality and joint problem solving increase relationship-specific investments; and in the expansion phase, joint problem solving increases relationship-specific investments and severe conflict resolution increases buyer uncertainty. Seller reputation moderates many of these relationships. The major conclusion of the research is that buyers and sellers should recognize that while information exchange and conflict resolution are important aspects of buyer–seller relationships, their use may not always lead to the desired relationship characteristics. Managerial implications of these findings and further research ideas are presented.