Supplier performance improvements in relational exchanges
Journal of Business & Industrial Marketing
ISSN: 0885-8624
Article publication date: 6 February 2007
Abstract
Purpose
This study aims to test both customer and supplier performance benefits associated with closer relational exchanges in light of both resource and technological environmental contingencies.
Design/methodology/approach
The research involved a survey of 1,170 managers in the pulp and paper industry to understand their relationship with their primary supplier of process control equipment (PCE). Each respondent was asked to provide their views on the closeness of their supplier relationship, the performance gains realized from their supplier relationships, and the linkage between their performance gains and improvements in supplier performance.
Findings
The results indicate that although customers may be achieving better performance through closer relationships, suppliers may not always be reaping reciprocal benefits. Specifically, improvements in customer purchasing performance did not result in improved supplier performance, but customer improvements in production performance resulted in supplier performance gains.
Research limitations/implications
The study focused on the exchange of one product line, PCE, within one industry. Further research is necessary to investigate customer‐supplier relationships involving other products such as parts and material incorporated into the customer's end product and crossing multiple industries. In addition, further research is needed to develop and test other potential performance outcomes and environment contingencies.
Originality/value
Since mutual performance improvements may not always be achieved in relational exchanges, this study suggests some critical considerations for suppliers making decisions to pursue closer customer relationships. These important considerations include the competitive nature of the supplier's market, the customer's desired performance improvement, the customer's level of internal expertise or knowledge, and the supplier's ability to provide differentiated products, services and knowledge.
Keywords
Citation
Fink, R.C., Edelman, L.F. and Hatten, K.J. (2007), "Supplier performance improvements in relational exchanges", Journal of Business & Industrial Marketing, Vol. 22 No. 1, pp. 29-40. https://doi.org/10.1108/08858620710722806
Publisher
:Emerald Group Publishing Limited
Copyright © 2007, Emerald Group Publishing Limited