Buyer‐supplier relationships: The impact of supplier selection and buyer‐supplier engagement on relationship and firm performance

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.

Citation

Kannan, V.R. and Choon Tan, K. (2006), "Buyer‐supplier relationships: The impact of supplier selection and buyer‐supplier engagement on relationship and firm performance", International Journal of Physical Distribution & Logistics Management, Vol. 36 No. 10, pp. 755-775. https://doi.org/10.1108/09600030610714580