Manufacturer–supplier relationships

Abstract

Relational buyer–seller exchanges have been the focus of significant research in the past few years. In extending this recent research, the authors draw upon transaction cost analysis and symbolic interactionism to propose and test a model focusing on outcomes of manufacturer–supplier relationships from the perspective of the manufacturer. Data from 157 purchasing executives offer empirical support for the relationships proposed in the model. In the context of acquiring critical items, relational orientation is found to be negatively related to measures of acquisition and possession costs and positively related to perceived product quality, and these variables, in turn, are significantly linked to the buyer's satisfaction with the supplier. Model results also indicate that a relational orientation has both a direct and an indirect link to satisfaction. Implications for both marketing managers and researchers interested in collaborative relationships between buyer and supplier organizations are offered.