PurposeThis 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/approachThe 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.FindingsThe 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/implicationsThe 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/valueSince 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.
This paper studies how customer and their supplier's dependency and the relative dependency of both firms correlates with customer perceptions of environmental uncertainties, relational exchange and both customer and supplier exchange benefits. The study draws on resource dependency and transaction cost economics theories and is based on a survey of 372 paper mills. The results indicate that customers perceive dependency is related to exchange benefits and not environmental uncertainties or relational exchange and the exchange benefits differ depending on which exchange partner is dependent and the relative dependence between the exchange partners.
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