Buyer–Supplier Relationships: The Impact of Supplier Selection and Buyer-Supplier Engagement on Relationship and Firm Performance

Document Type

Article

Publication Date

2006

Publication Title

International Journal of Physical Distribution & Logistics Management

Publisher

Emerald

Volume

36

Issue

10

First page number:

755

Last page number:

775

Abstract

Purpose – To analyze the impact of supplier selection and buyer-supplier engagement on the performance benefits attributable to buyer-supplier relationships, and the effect of these benefits on broader measures of buyer performance.

Design/methodology/approach – Analysis is conducted using a structural equation model using survey data.

Findings – Results demonstrate the positive influence of engagement and supplier selection on relationship performance. They also demonstrate that the success of the relationship directly and positively affects buyer performance.

Research limitations/implications – Additional analysis is required to examine whether the results hold for specific industry or purchase scenarios, and to identify other dimensions of the constructs of interest.

Practical implications – Buyers should pay attention to selecting the right suppliers and developing the infrastructure that will enable successful buyer-supplier relationships.

Originality/value – The paper provides empirical evidence of the impact of cultivating buyer-supplier relationships on relationship success, and how this directly impacts business performance.

Keywords

Business performance; Buyer-seller relationships; Contracting out; Industrial procurement; Suppliers; Value added

Disciplines

Business | International Business | Operations and Supply Chain Management

Language

English

Permissions

Use Find in Your Library, contact the author, or interlibrary loan to garner a copy of the item. Publisher policy does not allow archiving the final published version. If a post-print (author's peer-reviewed manuscript) is allowed and available, or publisher policy changes, the item will be deposited.

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