Importance of company size in long‐term orientation of supply function: an empirical research

Abstract

Purpose

The study of the relationships established between firms and their suppliers is of great interest at the present time, not only among academics but also among practitioners in business. But, although many works analyze this temporal orientation, fewer analyze the effect of company size on it. This paper sets out to discuss this issue.

Design/methodology/approach

An important proportion of firms is made up of small and medium‐sized enterprises (SMEs), and their economic importance is vital. Therefore, this current work, taking the Spanish agro‐food industry as a reference, analyzes the possible influence of the size of the customer firm on the temporal orientation of its supply relationships, specifically differentiating between SMEs and micro‐SMEs. The moderating effect analysis, included in the EQS software, has been used.

Findings

The company size influences the temporal orientation of firm‐supplier relationships. Important conclusions related to trust, commitment and satisfaction emerge. Discussions related to main results and to the main implications of the study are also included.

Research limitations/implications

The specificity of the sector considered in the empirical analysis may limit the scope for generalization of the conclusions.

Originality/value

No previous research analysing the effect of size on the temporary orientation of firm‐supplier relationships has been identified.

Citation

Polo Redondo, Y. and Cambra Fierro, J.J. (2007), "Importance of company size in long‐term orientation of supply function: an empirical research", Journal of Business & Industrial Marketing, Vol. 22 No. 4, pp. 236-248. https://doi.org/10.1108/08858620710754504