Abstract

Purpose This study aims to evaluate the influence of factors attributed to relationship attractiveness between supplier and customer, from the supplier’s perspective. Design/methodology/approach The empirical exercise was based on the use of multivariate data analysis with confirmatory factor analysis and a partial least squares approach to structural equation modeling. Findings The study resulted in a robust model, with a high explanatory factor for the latent variable relational attractiveness and commitment was the most influential factor, followed by expected value and interorganizational trust. Research limitations/implications Some limitations of the study can be highlighted: conducting research in a single cooperative and with a single audience; choosing a short-cycle supply chain, which may make it difficult to generalize to other industries; the cross-section nature of data also hinders the analysis to understand how the association between variables of interest may vary over time. Practical implications The negative influence of interpersonal trust reinforces the importance of developing collaborative attitudes between parties, whereas the non-significant value for dependence (financial and volume dependence) shows this is not a risk factor for relational attractiveness in a supply chain. Such results provide evidence on how to develop relationship management between suppliers and customers that are part of the same supply chain. Social implications It offers a new perspective for research in cooperatives, which still have no consensus on the motivating factors for members’ participation, including as evidence the results of the largest flower producing center in Latin America. The more a cooperative succeeds in increasing relational attractiveness, the greater the cooperative power and the ability to adapt to shocks and changes, which are fundamental factors for the success and longevity of the cooperative. Originality/value The research presents a model that is comprehensive enough to fit in different contexts and consider its specific characteristics. Additionally, this paper has added in-depth information on the relational attractiveness relationships in the context of a developing country.

Highlights

  • The ability of managers to handle individual short and long-term network relationships between suppliers and customers determines a company’s ability to compete (Palmer, Lindgreen & Vanhamme, 2005)

  • This study evaluated the influence of factors attributed to the attractiveness of the relationship between supplier and customer, through a study with suppliers belonging to a cooperative located in the largest flower producing center in Latin America

  • We obtained a robust model with a high explanatory value for the latent variable of relational attractiveness

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Summary

Introduction

The ability of managers to handle individual short and long-term network relationships between suppliers and customers determines a company’s ability to compete (Palmer, Lindgreen & Vanhamme, 2005). Companies can achieve competitive advantages and superior financial results through trust-based relationship building and management, enabling investment and information exchange (Ashnai, Henneberg, Naudé, & Francescucci, 2016; Kharouf & Lund, 2018), incorporating interfirm resources and routines into a critical resource (Dyer & Singh, 1998). Relationship marketing is a tool used within the supply chain that is designed to increase stakeholder satisfaction and can be used to create better synergy by gathering information that helps in building demand predictability, understanding consumer behavior, as well as other benefits in the chain that can turn into strategic differentials (Abeza, Finch, O’Reilly, MacIntosh, & Nadeau, 2019; Kozlenkova, Hult, Lund, Mena, & Kekec, 2015). Relationship marketing is based on the principle of establishing, maintaining and improving mutually successful relationships, where value is created for all parties (Gummesson, 2017; O’Malley, 2014; Sheth, 2017)

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