Buyer‐supplier relationships: The impact of supplier selection and buyer‐supplier engagement on relationship and firm performance
International Journal of Physical Distribution & Logistics Management
ISSN: 0960-0035
Article publication date: 1 December 2006
Abstract
Purpose
To analyze the impact of supplier selection and buyer‐supplier engagement on the performance benefits attributable to buyer‐supplier relationships, and the effect of these benefits on broader measures of buyer performance.
Design/methodology/approach
Analysis is conducted using a structural equation model using survey data.
Findings
Results demonstrate the positive influence of engagement and supplier selection on relationship performance. They also demonstrate that the success of the relationship directly and positively affects buyer performance.
Research limitations/implications
Additional analysis is required to examine whether the results hold for specific industry or purchase scenarios, and to identify other dimensions of the constructs of interest.
Practical implications
Buyers should pay attention to selecting the right suppliers and developing the infrastructure that will enable successful buyer‐supplier relationships.
Originality/value
The paper provides empirical evidence of the impact of cultivating buyer‐supplier relationships on relationship success, and how this directly impacts business performance.
Keywords
Citation
Kannan, V.R. and Choon Tan, K. (2006), "Buyer‐supplier relationships: The impact of supplier selection and buyer‐supplier engagement on relationship and firm performance", International Journal of Physical Distribution & Logistics Management, Vol. 36 No. 10, pp. 755-775. https://doi.org/10.1108/09600030610714580
Publisher
:Emerald Group Publishing Limited
Copyright © 2006, Emerald Group Publishing Limited