Buyer–supplier relationships involve dyadic interactions, but there is a dearth of empirical dyadic analysis of these relationships. While relationships with a power balance between partners do exist, relationships typically occur in the context of power asymmetry. This study examines how perceptions of power use and prevailing relationship quality in dyadic relationships characterized by substantial power asymmetry affect behavioral and operational outcomes. Hierarchical regression is used to analyze data from a dyadic survey of relationships of a brand‐name buying organization and its suppliers. Results indicate that power use affects partner behavior and operational performance, but the nature of the relationship dictates which power sources are most appropriate. In addition, the mediation effect of power imbalance shows that both relational and transactional factors can play an important role in supply chain exchanges.
Eamonn is on the academic staff of the National Institute of Technology Management (NITM) in University College Dublin (UCD), and is active in teaching, research and the business development activities of the Institute. Prior to joining UCD, he was Engineering Director for Bristol Myers Squibb, and was responsible for the design, installation and maintenance of process plants for developing and manufacturing anti-cancer drugs. He also worked as a consultant advising major multinationals and government agencies in asset management and procurement process improvement.Eamonn researches in the area of supply chain relationship management and has published in the International Journal of Operations & Production Management. He is on the leadership team of the IBM Integrated Supply Chain Research Consortium, a group of supply chain experts drawn from universities in the US, Europe and Asia, and is currently working with IBM on a global study of supply relationship management. In addition to teaching on a range of operations and supply chain programmes, Eamonn has a particular interest in the development and delivery of Service Supply Chain programmes, both academic for-credit modules and executive education seminars.2 Abstract Purpose -The paper employs transaction cost theory and social exchange theory to compare how buyers and suppliers perceive relationship mechanisms. The paper also explains the antecedents and dynamics of relationship performance by comparing buyer and supplier perceptions of the same relationships. Within the study we specifically focus on the issue of relationship success and test the hypothesis that the antecedents of perceived relationship success for buyers differ from those of suppliers within supply chain relationships.Design/methodology/approach -The paper is based on a study of the supply chain relationships of a major ICT company where matched pairs of buyers and suppliers were surveyed on the nature of their relationships. The survey instrument drew from previously published constructs on key relationship dimensions such as trust, commitment, power, communication, uncertainty and performance. A series of nested models were then developed and tested for the two groupsbuyers and suppliers.Findings -The study found that buyers and suppliers have significantly different perceptions of their relationships across a range of dimensions. In addition, the antecedents of relationship success for both groups bear little similarity, thus supporting our hypotheses.Implications -This research has implications both for academics and practitioners. For academics, the contribution of the paper is in establishing how both transaction cost theory and social exchange theory factors are perceived in dyadic relationships. Specifically, the paper has implications for the study of supply chain relationships as it highlights the perceptual gaps between buyers and suppliers and differences in the drivers of relationship performance. For practitioners, there are implications for managing supply chain relationship...
PurposeIn successful purchasing relationships, effective communication is a key factor. The purpose of this paper is to explore whether the choice of communication media is affected by different stages in the relationship development process and by different purchasing contexts: product and service purchasing.Design/methodology/approachThe study initially reviews the literature on inter‐organizational communication and purchasing relationships. In order to explore the research question, data were gathered through semi‐structured in‐depth interviews with purchasing managers, buyers and their suppliers in three product and three service purchasing relationships.FindingsThe study identifies a relationship development framework that influences the communication media selection in two purchasing contexts. It confirms that communication media selection is affected by the communication needs of the participants, the stage of relationship development, and the purchasing context.Research limitations/implicationsThis research was limited to six buyer/supplier relationships involving a single multinational buyer organization, so although a range of purchasing contexts was considered, the findings have limited application. The relationship development process and the incidence of media selection should be further examined in varied contexts and a survey of buyers and suppliers should test the framework.Originality/valueThis study is a refinement of the existing predominantly single‐respondent, survey‐based studies in the literature in that both parties in a series of purchasing dyads were interviewed. The paper makes a contribution as it illustrates the application of the media richness theory, explores the contextual factors surrounding media selection and provides a buyer‐supplier relationship development framework based on behavioural and functional aspects of the relationship.
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