A Conceptual Model for Understanding the Outcomes of Buyer-supplier Relationships in Supply Chains

Abstract

Inter firm relationships are receiving considerable attention in marketing literature.Many firms are focusing only on the activities that have been performed traditionally while making use of the relationships that have been developed with other firms to make an offer valued by the customer. In this context buyer-supplier relationships are also becoming increasingly important. The supply chain is a mechanism through which these relationships are materialized. This paper aims to introduce a conceptual model that facilitates empirical testing of the outcomes of buyer-supplier relationships in supply chains. This exercise is based on a literature review.

Exploring Relationship Power in Supply Chain Sustainability Practices: A Case Study of a South African Hospital Group

“…It is a sustainability theory that is based upon the premise that firms gain a competitive advantage once they possess or have access to a bundle of unique resources that are not easily imitated, substituted, or purchased [33,68]. This theory also explains how firms manage their dependence and maintain their relationships with external stakeholders in order to acquire unique resources [5,9,30].…”

“…Previous studies have explored buyer-supplier relationships for sustainability on the basis of social exchange and transaction cost theories. However, little research on buyer-supplier relationships for sustainability has been done from the resource dependence theory perspective [29][30]. The role of power in supply chain relationships needs further exploration, especially in emerging economies [9,11,15].…”

“…The resource dependence theory is an appropriate theoretical underpinning for this research, since it has been identified as an effective but underused theory, and it offers an explanation of how relationship power will be executed. It provides a holistic view of a firm's relationship power, and explains how buyers and suppliers are dependent on each other for the supply of products and services [5,14,30,33]. Unique and scarce resources may not be available within a firm; and so this theory explains how the source of power resides in the firm [13,30,34].…”

“…It provides a holistic view of a firm's relationship power, and explains how buyers and suppliers are dependent on each other for the supply of products and services [5,14,30,33]. Unique and scarce resources may not be available within a firm; and so this theory explains how the source of power resides in the firm [13,30,34].…”