Long-term buyer-supplier relationships in IT services

Abstract

Purpose

The purpose of this study is to explore an integrative model of supplier success, using a case study of the Thai high-technology firms. The study focuses on buyer-supplier relationships of information systems (IS), including bundles of hardware, software and services because these relationships are dependent on both immediate performance quality of the IS and long-term maintenance of a strong buyer-supplier relationship.

Design/methodology/approach

The research used an integrative model that incorporated the DeLone and McLean (2003) IS success model, representing system quality and Clauss and Tangpong’s (2018) impregnable exchange relationship model, representing relationship quality. Exploratory mixed methods study incorporated interviews with supplier relationship managers at five Thai high-technology firms (n = 15) and a quantitative survey of buyer firms (n = 393).

Findings

Results supported the integrative system-supplier success model. The most significant limitation is that the study was only conducted in a single industry (high tech) when the IS buyer-supplier relationships modeled here are ubiquitous in modern business.

Research limitations/implications

Despite this limitation, the research contributes to the literature by developing and testing a long-term buyer-supplier relationship success model that incorporates both the characteristics of an IS and the supplier characteristics that lead to positive outcomes.

Originality/value

This study makes intuitive sense and being demonstrated statistically – the fact that the overall quality of an IS, coupled with a well-liked, non-substitutable supplier with a history of good performance, would be considered to be a successful supplier relationship is not especially controversial. The value of the study lies in the integration of the two models to represent different aspects of supplier performance, which could have a different effect on the buyer-supplier relationship in the long-term.

Citation

Sombultawee, K. and Pasunon, P. (2022), "Long-term buyer-supplier relationships in IT services", Journal of Business & Industrial Marketing, Vol. 37 No. 3, pp. 629-642. https://doi.org/10.1108/JBIM-06-2020-0292