Buyer-supplier Relationships Research Articles

Can international buyer-supplier relational attributes influence the intention to source from local suppliers? A case study of International Oil Companies in Tanzania

This study explores whether International Oil Companies (IOC) intending to source their non-consultancy services from local providers are affected by their respective strategic relationships with international service providers. International Oil Companies (IOC) exploring oil and gas in Tanzania were used as a case study to represent the group of buyers. This study adopted Industrial Marketing and Purchasing perspectives (IMP) on buyer-supplier relationships, where the structural and functional attributes of buyer-supplier relationships were examined. Structural Attributes include continuity, complexity, interdependence, and trust, while Process Attributes include adaptation, conflict, cooperation, socialisation, and formalisation. Buyers’ intention to source from local suppliers was measured by four dimensions: presence of sourcing policy from local suppliers, presence of activities for creating awareness among local suppliers about supply opportunities, presence of relaxed evaluation criteria, and payment scheme that favours local suppliers and establishes a central unit for coordinating all activities intended to facilitate sourcing from local suppliers. A survey design was used, whereby primary data were collected from 189 employees working at middle- and top-level positions in oil and gas companies. Data analysis involved examining descriptive statistics for respondents’ attributes and inferential statistical analysis, where relationships between the study variables were examined. The findings show that, given the new market constraints and without any forceful inducement, OICs will consider sourcing from local suppliers despite the ongoing strategic relationship with international suppliers. Therefore, host countries should focus on developing the competence of local suppliers to meet IOCs’ expectations.

Relationship ambidexterity in buyer–supplier relations

Relationship ambidexterity in buyer–supplier relations

Trust violations in buyer-supplier relationships: Spillovers and the contingent role of governance structures

Trust violations in buyer-supplier relationships: Spillovers and the contingent role of governance structures

The role of power in market control in supplier-buyer relations

This study investigates the role of power dynamics in market control within supplier-buyer relationships, with a specific focus on blockchain technology adoption in supply chain networks. Using five focus group discussions, comprising of diverse participants categorized by sector, location, gender, and company size, the research explores how power influences decision-making processes. Findings reveal that larger companies often prioritize stability over innovation, limiting their willingness to adopt disruptive technologies like blockchain. In contrast, smaller firms demonstrate greater flexibility and openness to change. Beyond company size, factors such as product uniqueness, strategic network positions, and the personalities of decision-makers play critical roles in shaping blockchain adoption. Participants also reported persistent pressure from both suppliers and buyers to accept unfavorable terms, underscoring power imbalances that constrain smaller players. The analysis is framed within the conceptual structure of a model with a focus on the nuanced interplay of power and decision-making in the context of supply networks. Qualitative analysis of the discussions, conducted with Atlas.ti software, highlights the influence of sectoral differences, geographical variations, and gender dynamics in supply chain negotiations. This study provides valuable insights into the barriers and enablers of blockchain adoption within complex supply chain networks, emphasizing the critical interplay of power and communication in shaping market control.

Supply chain 4.0: a multi-sector grey systems-based analysis of buyer-supplier relationship development in Brazil

Supply chain 4.0: a multi-sector grey systems-based analysis of buyer-supplier relationship development in Brazil

Empowering value co-creation: Product and technology development in power asymmetric buyer-supplier relationships from the perspective of a weaker supplier

This research explores value co-creation practices for product and technology development within power asymmetric buyer-supplier relationships in their early stages. In terms of value co-creation practices, we focus on how buyers and suppliers contribute to benefits and impact costs, whereas for power, we focus on their influence on distribution of costs and benefits within the relationship. Through a qualitative study, we analyse 18 buyer-supplier dyads, each featuring a collaborative product and technology development process between a less powerful supplier and an influential buyer. The findings reveal that these co-creation practices served as a platform for mutual learning and knowledge creation, which provided the suppliers with a reinforced capacity to generate benefits for the buyers and mitigate the power asymmetry. To conclude, we put forward a framework along with a set of propositions designed to inspire further research on assessing supplier opportunities when navigating power asymmetric product and technology development relationships.

Viable Intertwined Supply Network: Modelling and Dynamic Analysis Using Artificial Neural Networks

The viability of intertwined supply networks (ISNs) has recently been studied as a critical topic in operations management. Modelling the viability of ISNs is considered a promising tool to meet the demands of extraordinary events, such as the Russo-Ukrainian War and the COVID-19 pandemic. To enhance the viability of ISNs, the structures of ISN must be modelled, and the behavioral dynamics of interactions between firms in a changing environment should be analyzed. In this study, a trophic chain-based dynamic formulation of ISN viability is presented, and a solution methodology for dynamic analysis of the ISN viability model is designed. The concept of artificial neural networks (ANNs) in ISN analysis is introduced to predict and analyze future behavioral strategies in buyer-supplier relations. The dynamic model of ISN is represented by a system of nonlinear differential equations and described in terms of three dynamic values: suppliers Xτ, focal firms Yτ, and market demand Zτ. The stochastic numerical simulations are performed for the dynamics of ISN model by employing ANNs with a scaled conjugate gradient neural network (SCGNN) in a more advanced and efficient manner. Two numerical cases are investigated to evaluate the performance of the proposed approach. The validation, correctness, and reliability of the proposed stochastic SCGNN technique are analyzed by selecting 78% of the data for training, 12% for validation, and 10% for testing. The correctness of the scheme is authenticated through the overlapping of the proposed and state-of-the-art results. Moreover, the statistical analysis is presented graphically in terms of mean square error, state transitions, function fitness, error histograms. The regression coefficient values are calculated as 1 for each scenario presents the perfect model. Finally, a comparison of numerical results, which shows the overlapping is examined and the absolute error is performed between 10-05 to 10-07. The small mean square error performances enhance the correctness of the scheme. These results indicate that the dynamical model can effectively analyze the ISN structures and help researchers and practitioners ensure the survival of supply chains during extraordinary events.

An integrative approach to assessing buyer-supplier relationships: scale development and validation

PurposeThe research investigated relations between factors used to evaluate the quality of buyer-supplier relationships (BSRs): perceived performance of the supplier, satisfaction with supplier, and trust in the supplier; and to develop an instrument to evaluate BSRs (a BSRs evaluation scale).Design/methodology/approachWe applied the psychometric testing of the BSRs measurement using exploratory factor analysis and confirmatory factor analysis. We applied structural equation modeling (SEM) to understand the interrelations of factors underlying BSRs.FindingsThe BSRs evaluation scale consists of three factors: perceived performance of the supplier, satisfaction with the supplier, and trust in the supplier. The results provide empirical evidence of the validity, reliability, and generalizability of the presented measurement.Originality/valueThe study developed a novel measurement instrument that integrates BSRs’ multidimensional constructs. It explains and confirms the significant roles of satisfaction with the supplier, trust in the supplier, and perceived performance of the supplier in shaping the BSRs’ quality. Furthermore, we provide evidence that in BSRs goodwill- and competence-based trust integrate into a single factor.

Dyadic Reputations, Images, and Credibility: The Shared Nature of Intangible Resources in Buyer–Supplier Relationships

Dyadic Reputations, Images, and Credibility: The Shared Nature of Intangible Resources in Buyer–Supplier Relationships

The effect of shared ecological value on buyer–supplier relationship within mountaineering tourism

Shared values play an important role in attracting new tourists, retaining existing ones and gaining an important competitive advantage. Building upon the Commitment-Trust model, this study tested the role of shared ecological values in the creation of tourist trust and relationship commitment, and finally tourist behavioral intention. To test the hypotheses, a sample consisting of 480 mountaineering tourists of two representative travel agencies were surveyed, and a mixed-method approach based on a quantitative survey (n = 436) and qualitative interviews (n = 60) was also adopted to examine their relationships. Results revealed that shared ecological values between tourists and travel agencies were significantly negative predictors of credibility, while credibility and benevolence emerged as significantly positive predictors of relationship commitment. Moreover, credibility and relationship commitment were partially positively predictors of tourist’s behavioral intentions. The findings enrich the extant knowledge on mountaineering tourist relationship marketing and human-nature relationships and provide implications for destination management and wildlife protection.

Supply chain adjustments to tariff shocks: Evidence from firm trade linkages in the 2018-2019 U.S. trade war

We use the 2018-2019 U.S. trade war to examine how supply chains adjustments to a tariff cost shock affect imports. Using confidential trade data, we show that the decline in U.S. imports of tariffed goods during the trade war was driven primarily by the exit of firms from import markets, discontinued buyer–supplier relationships, and reduced entry into importing. However, tariffed products where imports were concentrated in fewer suppliers exhibited smaller declines in import growth.

Resilience strategies in an intertwined supply network: Mitigating the vulnerability under disruption ripple effects

Intertwined supply network (ISN) is a complex system consisting of multiple interconnected supply chains orchestrated by different focal firms. The inherent interconnectedness of an ISN makes it vulnerable to localized disruptions, which can propagate through intricate supplier-buyer relationships, causing unpredictable disruption ripple effects that exacerbate vulnerabilities. While existing literature provides valuable insights into the vulnerability of supply networks with a single focal firm, less attention has been given to ISN comprising multiple competing focal firms. This study proposes an agent-based model to simulate the diffusion of disruption ripple effects in a realistic ISN. The model is used to assess the relative effects of firms' structural and operational attributes on vulnerability and to compare the effectiveness of three mainstream resilience strategies—resistance, adaptation, and recovery—in mitigating the overall vulnerability of ISN. Furthermore, the interaction of resilience strategies initiated by different focal firms in the ISN is explored. The results suggest that focal firms should prioritize their own structural attributes and those of their neighboring firms to address vulnerabilities effectively. Moreover, focal firms can identify partners with higher reciprocity and engage in cooperation for resilience investment. This study contributes to the understanding of ISN vulnerability and provides practical insights for developing effective resilience strategies in complex supply networks.

Harnessing the innovative potential of start‐ups for corporate entrepreneurship in incumbent firms: a study of asymmetric buyer–supplier relationships

Corporate entrepreneurship is critical for incumbent firms to ensure continuous organizational renewal. Asymmetric buyer–supplier relationships with start‐ups, known as “venture clienting,” serve as an entrepreneurial process wherein incumbent firms integrate innovative technologies acquired from start‐ups into their processes and products to drive organizational renewal. Prior research, however, lacks insights into how incumbent firms manage these asymmetric buyer–supplier relationships and overcome the challenges that differences in culture, governance structure, and negotiating power pose. We address this gap by drawing on data from 52 semi‐structured interviews with key decision makers in a multi‐case study of six incumbent firms engaging in venture clienting. Based on the results of our cross‐case analysis, we inductively distill three maturity stages of venture clienting within incumbent firms (i.e., initiation, complexification, and pruning) and the triggers for each stage. We also shed light on the dynamic capabilities that firms develop in each maturity stage and outline the enablers that foster their development. Furthermore, we reveal how these dynamic capabilities affect corporate entrepreneurship in the incumbent firm, in terms of opportunity recognition and technology integration success.

Impact of relational norms on performance: interaction between solidarity, power and flexibility in buyer-supplier relationships

Buyer-supplier relationships are characterised by relational norms. These norms are bilateral expectations that can reduce opportunistic behaviour, improve value creation and develop cooperation among exchange parties. Drawing on relational exchange theory, this study explores how three relational norms, solidarity, power and flexibility are interrelated in supply chain relationships. We test a mediated model where solidarity and power directly impact relational performance and flexibility mediates these relationships. The mediated model was tested with matched pairs of data on 93 supply chain arrangements between buyer and supplier organisations. Results show that solidarity improves relational performance both directly and in the presence of flexibility. Power, on the other hand, does not impact relational performance, both directly and through flexibility. The results obtained, especially the importance of flexibility and solidarity for both buyers’ and suppliers’ managers in maintaining long-term benefits in supply chain exchanges, are discussed for theory, practice and research.

Digital integration capability asymmetry and buyer product innovation: the contingent roles of environmental dynamism and innovative climate

PurposeFirms are increasingly digitalizing their business processes and expanding them into digital platforms, which are believed to generate digital and relational resources that can facilitate and deliver innovations for firms. Instead of focusing on the extent of digital integration capability (DI), this paper seeks to empirically evaluate whether the DI asymmetry between the buyer and supplier firms influences bilateral information sharing and the buyer’s product innovation. We also examine the moderating effects of firms’ external (environmental dynamism) and internal (innovative climate) environments on these relationships.Design/methodology/approachPrimary and secondary archival data on 180 buyer-supplier Chinese dyadic relationships were collected and analyzed using multiple linear regression models. Additionally, the Process macro was used to shed a nuanced light on the moderation effects of environmental dynamism and innovative climate.FindingsThe results show that DI asymmetry negatively impacts buyer firms’ product innovation through decreased information sharing. Environmental dynamism weakens the negative relationship between DI asymmetry and information sharing. Meanwhile, the innovative climate negatively moderates the relationship between information sharing and product innovation.Originality/valueThis study adds knowledge to the literature regarding the dark side of “one-sided digitalization.” By exploring the influences of unbalanced DI in buyer-supplier relationships, this study yields essential theoretical and managerial implications for product innovation success in a digital era.

Size matters: the influence of supplier size on buyer's usage of mediated power in positive and negative supplier-induced disruptions

PurposeWhile size asymmetry in buyer–supplier relationships has been studied in non-disruption contexts, this research explores how supplier size influences positive and negative supply chain disruptions. Anchoring on the commitment-trust theory (CTT), we explore buyer commitment as a mediating variable and examine how buying firms' mediated power usage depends on different supplier sizes and types of supplier-induced disruptions.Design/methodology/approachThrough two scenario-based behavioral experiments, we discover different patterns in buyers' use of mediated power, contingent on the types of supplier-induced disruptions.FindingsIn negative disruptions, buyers prefer more mediated power with large suppliers to control uncertainties, using reward or coercive power strategies. In positive disruptions, we find opposite results, indicating different buyers' perceptions and actions are contingent on both the supplier size and the types of disruptions. These findings underscore the complex interplay between supplier size, buyer commitment and mediated power strategies, revealing that disruption type significantly shapes buyer responses.Research limitations/implicationsThis paper extends the CTT framework by considering new antecedents and outcomes. We also provide a more comprehensive understanding of buyer behavior when facing positive and negative supplier-induced disruptions. Our study has limitations. Through vignette-based behavioral experiments, there is a risk that scenarios may not accurately represent real-life situations and that decision-making dynamics could be oversimplified. Future research should incorporate nuanced measurements and conduct additional qualitative research for a comprehensive understanding.Originality/valueThis study enriches the understanding of the buyer-supplier relationship by expanding the CTT framework for a more comprehensive picture. We also offer nuanced insights into size dynamics and disruption types, emphasizing tailored strategies in supply chain management. The findings underscore the importance of understanding these nuances to employ tailored strategy in a business-to-business (B2B) context, as mediated power is contingent on multiple factors.

Great Expectations: The Moderating Effects of Supplier Service Model and Market Dynamics on Relational Contract Performance

Under a relational contract, the value placed on expected future business must outweigh the short-term temptations to deviate for the buyer–supplier relationship to persist. Operational and relational factors that influence this trade-off have been explored, however, there is a considerable lack of research on the moderating effects of supplier and market characteristics. We offer insights into how supplier service models and market dynamics impact suppliers’ decisions to renege on the relational contract. Limited access to transactional and contractual data has restricted previous exploration. We overcome this limitation with a detailed dataset in the for-hire truckload transportation sector. We find that a third-party brokerage service model is better able to overcome operational demand challenges and maintain service due to lower capacity constraints and pooling effects as compared to asset-based providers. Furthermore, when the overall market is capacity-constrained, long-term relationships become less of a deterrent for suppliers to reject business. In addition, during tightly constrained markets, suppliers respond with higher rejection rates to short-term demand surges but not to historical demand variability.

Exploring the role of heuristics in buyer–supplier relationship dynamics

PurposeThis paper aims to explore the role of heuristics in the reassessment of relationship events and how it influences perceptions of commitment, fairness and relationship value. It answers the question of how heuristics interrelate with decision-makers’ evolving interpretations of commitment, fairness and relationship value in a specific buyer-supplier relationship.Design/methodology/approachThis paper presents data from a longitudinal study of an evolving buyer–supplier relationship involving a multinational supplier of fast-moving consumer goods and a medium-sized and highly specialized supplier. It analyzes qualitative data about the use of heuristics in buyer–supplier relationships, and it is based on evidence collected from interviews, presentations, meetings and secondary data.FindingsThis paper shows that a buyer’s unexpected behavior can lead to a reassessment of commitment, fairness and relationship value. Heuristics can delay relationship reassessments, however. The case shows that heuristics have a preserving quality and that the effect of transformative events only slowly changes the perception of the value of the relationship. In this change process, the link between commitment, perceived fairness and heuristics is crucial.Originality/valueThis paper contributes to research on the relationship between buyer–supplier relationships and heuristics. In particular, the paper contributes to the understanding of how relational events in a buyer-supplier relationship change the commitment and perception of fairness, and how heuristics change accordingly. On a more overarching level, the study contributes to our understanding of business relationship dynamics.

The effect of social responsibility on supplier continuity after disruptions: An experiment with purchasing professionals

Although emotions can affect the decision-making process of purchasing professionals, limited attention has been dedicated to how they shape the decision to maintain the relationship with suppliers when the latter behave in a socially irresponsible way. Considering this gap, we build on Appraisal Theory to analyze how guilt and trust affect the decision to continue working with a socially irresponsible supplier when a disruption occurs. We conducted a scenario-based experiment with 148 buyers, in which we simulated an extraordinary situation, and then analyzed the data using multiple regression analysis. The results showed that when a supplier is not socially responsible, buyers experience a feeling of guilt and trust them less, which has a negative impact on their decision to continue working with that supplier. The study also found that the effect of the guilt experienced by the purchasing professional is heightened when the purchased item is strategic. This study highlights the importance of paying attention to purchasers' emotional experiences with suppliers' practices during challenging times, as these can shape buyer-supplier relationships in socially responsible supply chains, select sustainable suppliers, and engage in socially responsible purchasing.

Legitimacy and transparency in dyadic supply chains: Does competition intensity matter?

Working only with suppliers that meet certain social and environmental standards has become a new norm in the selection of business partners for many firms, which encourages suppliers to become more transparent to gain a competitive advantage. This study investigates whether buyer legitimacy is associated with supply chain transparency from an environmental, social, and governance (ESG) perspective. Using a dataset of 605 dyadic relationships from Chinese listed firms for the period 2011–2019, we empirically examine our conceptual framework using hierarchical linear regression models. We demonstrate that buyer legitimacy is positively associated with supplier ESG transparency in dyadic supply chains. We further find that the supplier's competition intensity negatively moderates the positive relationship between buyer legitimacy and supplier ESG transparency. Overall, our findings contribute to a better understanding of organizational legitimacy and the buyer–supplier relationship and offer practical guidelines for enhancing supply chain transparency.