The role of personal relationships in supply chains

Abstract

Purpose – The purpose of this paper is to understand how personal relationships influence behavior within a supply-chain context. Design/methodology/approach – This research employs a qualitative methodology that allows for a rich assessment of how buyers and suppliers of logistics services interact within the context of personal relationships (e.g. friendships), that are themselves embedded within interfirm relationships. Based on a grounded theory approach, a model is developed describing how and why personal relationships are important for supply-chain managers to consider when cultivating interfirm connections. Findings – The findings reveal how managers act/interact within the context of personal relationships, as well as the outcomes/benefits associated with the development of personal relationships. Research limitations/implications – This study uses qualitative interviews to generate theory. The generalizability of the findings will have to be empirically examined in future research. Practical implications – Managers can use the findings to understand explicitly what types of benefits personal relationships can yield. Further, this study presents to managers the specific actions that buyers and suppliers of logistics services engage in, when developing a personal relationship, in order to facilitate the generation of positive business outcomes. Originality/value – A notable weakness in the supply-chain relationship literature is the unfulfilled need for research examining interfirm relationships at a micro/individual level, rather than the traditionally adopted firm-to-firm view, in order to account for the social/relational elements of firm-level relationships. This paper addresses that gap by exploring personal relationships within supply chains.