The emergence of dependence and lock-in effects in buyer–supplier relationships — A buyer perspective

The industrial marketing literature frequently points to dependence in buyer–supplier relationships (BSRs) as an essential construct in understanding the development of strong, long-lasting partnerships. Although the antecedents of dependence have been discussed, extant research lacks an understanding of the explanatory mechanisms of how dependence – or even lock-in situations – actually evolve. In this article, we examine the emergence of these aspects in BSRs by analyzing the example of a logistics outsourcing relationship. Using a grounded theory approach in a real-life case involving a German mechanical engineering company and its service provider, we identify four interrelated mechanisms (convincing, tying, complementing and lock-in) that explain dependence and lock-in from a buyer's perspective. Based on our empirical findings, we develop a conceptual model that points to the theoretical importance of the interconnected influences and sub-processes between transactional, mental, and operative bonding effects. Our results inform managerial practice on how to plan and manage BSRs. The model enhances existing research on dependence in BSRs and can serve as a starting point for further investigations into buyer–supplier dependence (BSD) and lock-in in dyadic business relationships.     

The impact of buyer–supplier relationships on supplier innovativeness: An empirical study in cross-border supply networks

Drawing on organizational learning and the relational view of the firm, this study seeks to understand the factors that drive supplier innovativeness in the context of cross-border supply relationships. To address this research objective, a survey included 189 parts and components manufacturers (suppliers) in Turkey; hierarchical regression analysis is used to test the hypotheses. The findings demonstrate that interfirm knowledge sharing routines, relation-specific investments, and governance mechanisms may promote supplier innovativeness by expanding the supplier's knowledge resources and encouraging it to invest in innovative activities. In addition, this research emphasizes differentiating effects of the supplier's tier position for the impacts of buyer assistance and cooperative tie. As such, this study contributes to the purchasing and supply management literature by empirically showing how buyer–supplier relationships, particularly in cross-border supply networks, affect supplier innovativeness.     

The origins of power in buyer–seller relationships

Who, or what, holds power in business-to-business buyer–seller relationships is a debate at the heart of power theory. Power in buyer–seller relationships is variously seen as the property of organizations, individuals or relationships yet to be theoretically valid and useful to management, integration of these schools of thought needs to be operationalized. This paper opens up future research avenues through identifying how buyers and sellers understand the origins of power and the nature of self perceived and countervailing power. The paper presents results from 10 focus groups of both buyers and sellers revealing the underlying origins of experienced power. The results support the proposition that power in buyer–seller relationships is a pluralistic concept and that extant theories focused on organizational, individual or relational elements of power are independently too narrow in their reflections of the power construct; rather, they are all part of the same broad construct.     

The effect of social capital on local suppliers’ exploitative and exploratory learning in global buyer–supplier relationships: the moderating role of contract specificity

Drawing on the theories of social capital (SC) and organizational learning, a contingency theoretical framework that examines the impact of structural, relational, and cognitive SC on local suppliers’ exploitative and exploratory learning in the context of global buyer–supplier (GBS) relationships in China was developed. The extent to which the impact is moderated by the contract specificity between the buyer and supplier is also examined. The empirical results show significant positive impacts of structural and relational SC on local suppliers’ exploitative learning but significant negative impacts on local suppliers’ exploratory learning. More specifically, contract specificity strengthens the positive effects of all three dimensions of SC on exploitative and the negative effects of structural SC and relational SC on exploratory learning. They put forward several potential implications for practicing managers and policymakers.     

Interpersonal attraction in buyer–supplier relationships: A cyclical model rooted in social psychology

The concept of attraction is not reserved for the study of interpersonal relationships between husband and wife, family members, or lifelong friends. On the contrary, it contains much potential as a variable describing interpersonal business exchange relationships. This potential has been noted by well-known industrial marketing scholars in the past, and recent theoretical advances have incorporated attraction to describe buyer–supplier exchange, although primarily at the interorganizational level of analysis. The in-depth understanding of interpersonal attraction between boundary spanners representing buying and supply companies has yet to be developed. By drawing on social psychology and social exchange literature, this paper attempts to fill some of this gap. It contributes by uncovering the elements and process of interpersonal attraction. Furthermore, propositions are formulated to guide future research efforts on interpersonal attraction in the buyer–supplier context. Finally, the managerial value and challenges of applying attraction to buyer–supplier exchange relationships are discussed.     

Governance mechanisms in domestic and international buyer–supplier relationships: An empirical study

Governance mechanisms are a key element of business relationships. However, little is known about the possible differences between their uses in domestic versus international business relationships. Drawing on empirical data, we investigate three issues. First, we compare the use of five governance mechanisms (contracts, value-creating norms, value-claiming norms, specific investments, and trust) in purely domestic relationships as opposed to relationships with an international component. We also investigate whether customer satisfaction and commitment differ in these two settings. Second, we extend the model of Palmatier, Dant, and Grewal (2007) by adding two distinct types of governance norms—value-claiming norms and value-creating norms—and analyze the interrelationship between the five governance mechanisms as well as their impacts on business customer satisfaction and commitment. Finally, we analyze the moderating role of internationality on relationships between governance mechanisms and customer commitment. Data from a survey of 296 companies support most of the hypothesized relationships.     

Maximizing buyer–supplier relationships in the Digital Era: Concept and research agenda

As technology continues to advance and new products emerge, the interactions between buyers and suppliers have changed. The management of buyer–supplier relationships has increasingly become more dependent on new technologies, such as Partner Relationship Management (PRM) systems and computer-mediated communications (CMC). Furthermore, when new technologies emerge, suppliers are expected to educate their buyers about the benefits of the technology, train them on how to use it, and aid with the integration of the technology into pre-existing work processes. Given these issues, this special issue of Industrial Marketing Management explores the changing nature of buyer–supplier relationships in the Digital Era. This article presents a snapshot of the changes in buyer–supplier relationships brought on by new technology, provides an overview of the selected articles in this special issue, and offers a few directions for future research.     

Toward a typological view of buyer–supplier relationships: Challenging the unidimensional relationship continuum

Building on the configurational approach to buyer–supplier relationships (BSRs), we attempt to define a parsimonious framework for relationship integration to create a holistic understanding of relational configurations. Following the principles of typological theory building, this study aims to understand the mechanisms underlying relationship integration and type-specific performance. To that end, we use the relational governance theory to build a three-dimensional (economic, structural, and social) framework that distinguishes BSRs. Using the dimensions from previous BSR-typologies, we propose eight relational configurations, which we test against empirical data from 246 dyadic industrial BSRs. Our results show eight distinct BSR-configurations with varying levels of operational performance. Our work contributes to the BSR literature by providing a unified framework of relational configurations and by demonstrating the link between relational configurations and performance.     

The bonding effects of relationship value and switching costs in industrial buyer–seller relationships: An investigation into role differences

Despite the established importance of buyer–seller relationships in B-to-B markets, research to determine the differential effects that keep suppliers and customers in a relationship has been scarce. Referring to transaction cost analysis, this study investigates how switching costs and relationship value as perceived by each side unfold their bonding forces in such a relationship. Based on a large scale survey administered in Germany, Korea, New Zealand, and Argentina among marketing/sales and purchasing managers the study shows that relationship value has a stronger impact on intentions for relationship enhancement, search for alternatives and switch intention than switching costs for both buyers and sellers. Only with regard to relational tolerance and only for buyers do switching costs play a greater role than relationship value. Furthermore, buyers base their future relationship intentions more on the current state of the relationship than suppliers. Our results suggest that role differences must be taken into account when studying institutional arrangements in B-to-B markets.     

The performance implications of power–trust relationship: The moderating role of commitment in the supplier–retailer relationship

The current research examines how coercive power and non-coercive power affect trust and how these relationships are affected by affective and calculative commitment. It also expands the understanding of the role of an under-researched dimension of performance, i.e., strategic performance, and studies it as a mediating variable in the relationship between trust and financial performance. The proposed model is empirically tested using Partial Least Squares (PLS) in supplier–retailer channel in Taiwan. The findings reveal that affective commitment has a positive moderating effect on the negative relationship between coercive power and trust, while calculative commitment has a negative moderating effect on the positive relationship between non-coercive power and trust. The results also indicate that strategic performance partially mediates the effect of trust on financial performance. The research advances theoretical understanding on the complex power–trust relationship and provides insights into the role of commitment in both enabling and undermining channel relationships. The findings highlight the importance of building affective commitment in channel relationships and the critical role of strategic performance in the trust–financial performance relationship.     

Intermediaries in power-laden retail supply chains: An opportunity to improve buyer–supplier relationships and collaboration

Despite the benefits of buyer and seller collaboration and hence relationships extolled in extensive studies, issues of relationship power inhibit implementation of collaborative and relational approaches, particularly in some parts of the retail sector. Further, most research regards buyer–supplier collaboration and relations as dyadic or focal relationships, or perhaps in a network context, and typically investigates buyer–supplier collaboration and relations from a power-dependency perspective; and within vertical supply integration. Little attention has been given to the potential role of supply chain intermediaries, such as logistics service providers, in objectively and independently determining and managing the course of buyer–supplier collaboration and relations in a business-to-business context. This article appraises the potential role of buyer–supplier collaboration and relations and their relevant opportunities in the power-laden, contentious environment of the retail grocery sector. With an interdisciplinary approach, drawn from supply management, relationship management, and logistics and supply chain management, this article emphasises the importance of horizontal collaboration using fourth-party logistics structures as horizontal intermediary conduits, who act independently between retailers and suppliers to facilitate collaborative and relational activity.     

Does information and communication technology improve job satisfaction? The moderating role of sales technology orientation

Empirical research concerning the role of information and communication technology (ICT) in shaping business-to-business salesforce job satisfaction remains relatively scarce. The authors propose and empirically test a causal model that theoretically represents structural relationships among factors comprising ICT and eventual salesperson job satisfaction. Study results indicate that ICT indirectly influences job satisfaction through salesforce administrative performance. While ICT infrastructure, training, and support positively relate to administrative performance, none of them influence outcome performance significantly. In addition, salesperson technology orientation moderates the effect of both ICT infrastructure and support on job satisfaction. Managerial insights and implications from the research are discussed.     

Designer–buyer–supplier interface: Theory versus practice

The paper focuses on facilitating an interface and collaboration among designer, buyer, and supplier at three planning horizons: strategic, tactical, and operational with respect to supplier relations. To accomplish this interface, nine propositions for all areas of interface at three levels of planning are presented. These included: (1) long-term strategic alliances, (2) supplier R&D investment and financial strength, (3) confidential relationships, (4) reduction in the number of suppliers, (5) information sharing, (6) supplier plant visitation, (7) supplier selection, evaluation, and certification, (8) supplier training/meetings, and (9) the inspection and receiving policy. Then, each proposition is evaluated in practice for a company and the extent of difference from theory to practice is identified. The results indicate that the company performed well for three propositions (4), (7), and (9), while it performed very poorly for six propositions of (1), (2), (3), (5), (6), and (8). These results indicate that the company performed poorly in the strategic aspects of supplier relationships. The company performed marginally well in the tactical aspects of supplier relationships. The company performed well in the operational aspect of supplier relationships. Finally, the conclusions, assessment, and future research directions are presented.     

Do supplier perceptions of buyer fairness lead to supplier sales growth?

Despite the growing number of studies focusing on fairness perceptions in buyer–supplier relationships, the pertinent literature mostly focuses on understanding the buyers' perceptions of fairness. In this study, we argue that sellers' perceptions of the fairness of the buyer are equally important but often overlooked. Moreover, existing research fails to provide empirical evidence for examining the long-term effects of fairness on sales growth. We address these gaps by reporting the results of a longitudinal study based on both primary data collected from automotive suppliers in 2009, and objective sales data for these suppliers from an automotive manufacturer over a three-year period after 2009. We employ a latent growth curve model, which reveals that only interactional and distributive fairness have a positive and significant effect on both trust and commitment. Our analysis further reveals that the positive effect of trust and commitment on sales growth is smaller as the supplier's level of dependency on the car manufacturer increases. When the buyer's perception of dependence is considered, these effects are reversed. Several managerial implications of these findings are provided.     

The development of post-project buyer–seller interaction in service-intensive projects

The purpose of this research is to enhance the understanding of post-project buyer–seller interaction, a topic previously studied mainly from the perspective of social exchange or sleeping relationships. With the advent of service-intensive projects, however, the dynamics of post-project interaction has changed, demanding a broader theorization. This research extends the scope of project marketing, by proposing a research framework illustrating interaction development in a longitudinal setting. We utilize the framework to analyze three projects, two of which continued for more than a decade, through a qualitative case study. The research provides empirical insight into the interaction orientations and development patterns arising in the post-project stage. It suggests that post-project interaction develops through three main orientations (cooperative development, buyer-led development, and seller-led maintenance) that vary over time, thus creating unique development patterns. The study concludes with five practical recommendations for managers to deal with evolving post-project interaction.     

Power priorities in buyer–seller relationships: A comparative analysis

Power, as a significant dimension of relationships, continues to be of critical interest in the inter-organizational literature. This article assesses how different relationship types and strategic foci are related to buyers' and sellers' power priorities. Contributing to the discussion of buyer–seller power priority areas as commercial detail, operational issues, strategic issues and attitudes, the research focuses on the influence of relationship types (new, approved, preferred, partnership) on these power priorities in B2B contexts. This is important as partnerships do not simply emerge, but evolve over time suggesting that for both parties there is a period that is transitory. Through a survey of buyers and sellers (n = 355), the research highlights that as partnerships evolve, relational issues complement, but do not supersede, the focus on commercial and operational concerns. Furthermore, within partnerships, whilst sellers' focus on strategic issues increases, it is the total power that grows and the influence agenda is extended, rather than re-distributed. Additionally, it provides detail on how power priorities vary and are differentially distributed between buyers and sellers in different relationship types. This paper contributes to B2B partnership and power theories, challenging assumptions about relationships and adding weight to the increasing suggestion that relationship success is overplayed.     

Buyer attractiveness as a catalyst for buyer–supplier relationshipdevelopment

The concept of buyer attractiveness has received increasing scholarly attention in the recent business marketing literature, yet empirical studies of the dynamics between buyer and supplier attractiveness and their implications for relationship development are scarce. The research framework presented in this study suggests that buyer attractiveness is connected, first, to supplier's experienced and expected business outcomes within the focal relationship, and second, to the leverage impact of the focal relationship on supplier's other relationships. A qualitative case study of two buyers and their key suppliers scrutinizes the dimensions of attractiveness associated with relationship development. The findings indicate that attractiveness and adaptations performed by the buyer and the supplier are interlinked in a mutually reinforcing or deteriorating manner, forming a mechanism that catalyzes relationship development. These findings and the resultant empirically grounded framework provide a conceptualization and enhanced understanding of the dynamics between attractiveness, adaptations and relationship development.     

Creating value in retail buyer–vendor relationships: A service-centered model

We present a “service-centered” model of retail buyer–vendor relationships, in which retail buyers' perceptions of a vendor's economic and social resources affect their assessments of relationship value and relationship outcomes. Economic resources offered at the organizational level of the vendor include brand equity and customer support activities (e.g., merchandising support and margin maintenance). Social resources offered at the individual level of the salesperson include special treatment and customer advocacy. Relationship outcomes include the buyer's intention to grow the business, and in the event of business termination, maintain the interpersonal relationship with the sales representative. Survey data from 532 retail buyers were collected and analyzed using structural equation modeling. The results show that relationship value mediates the effects of economic and social resources on relationship outcomes. However, the process by which this occurs varies.     

The moderating effect of brand strength in manufacturer–reseller relationships

This study investigates the moderating effect of brand strength in manufacturer–reseller relationships. The business marketing literature has not previously addressed brand strength differences. This research tests these brand strength differences on a conceptual framework consisting of pathways from manufacturer brand benefits (manufacturer support, brand equity and customer expectations) to reseller relationship outcomes. A multi-group structural equation analysis shows that there are no differences in the manufacturer brand support and brand equity effects on reseller satisfaction between major and minor brands. However customer expectations are important when resellers evaluate minor brands, but not for major brands. Furthermore, the findings show that resellers of minor brands are more committed to and more likely to trust manufacturers of minor brands.     

Reexamining the direct and interactive effects of governance mechanisms upon buyer–supplier cooperative performance

This study aims to explore the effect of governance mechanisms (including both formal and social controls) upon the buyer–supplier cooperative performance in supply chains. Empirical evidence obtained via a mail survey from 106 firms participating in the Taiwanese “Center Satellite Production System” indicates that (1) there is an inverted U-shaped relationship between formal control and cooperative performance; (2) social control has a consistent positive effect on cooperative performance; and (3) the joint use of formal control and social control could enhance cooperative performance in supply chains but only in cases with moderate usage of formal control. Otherwise, social control becomes a supportive factor that repairs cooperative performance damage from overwhelmingly applied formal control.