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.

[1]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[2]  John R. Nevin,et al.  Performance Outcomes of Purchasing Arrangements in Industrial Buyer-Vendor Relationships , 1990 .

[3]  R. M. Monczka,et al.  Cooperative Buyer/Seller Relationships and a Firm's Competitive Posture , 1989 .

[4]  S. Stryker.  Role-Taking Accuracy and Adjustment , 1957 .

[5]  D. W. Barclay,et al.  The Effects of Organizational Differences and Trust on the Effectiveness of Selling Partner Relationships , 1997 .

[6]  Patrick E. Murphy,et al.  Ethical and Legal Foundations of Relational Marketing Exchanges , 1993 .

[7]  J. Steenkamp,et al.  Generalizations about trust in marketing channel relationships using meta-analysis , 1998 .

[8]  Jan B. Heide,et al.  Transaction Cost Analysis: Past, Present, and Future Applications , 1997 .

[9]  Jan B. Heide,et al.  Do Norms Matter in Marketing Relationships? , 1992 .

[10]  F. Roodhooft,et al.  Effectively selecting suppliers using total cost of ownership , 1999 .

[11]  B. Borys,et al.  Hybrid Arrangements as Strategic Alliances: Theoretical Issues in Organizational Combinations , 1989 .

[12]  Jan B. Heide,et al.  ALLIANCES IN INDUSTRIAL PURCHASING - THE DETERMINANTS OF JOINT ACTION IN BUYER-SUPPLIER RELATIONSHIPS , 1990 .

[13]  O. Williamson.  Comparative Economic Organization: The Analysis of Discrete Structural Alternatives , 1994 .

[14]  James A. Narus,et al.  A Model of the Distributor's Perspective of Distributor-Manufacturer Working Relationships , 1984 .

[15]  Lawrence A. Crosby,et al.  Relational bonds in industrial exchange: An experimental test of the transaction cost economic framework , 1994 .

[16]  Renee Fontenot,et al.  Relational exchange: A review of selected models for a prediction matrix of relationship activities , 1997 .

[17]  Robert E. Spekman,et al.  Just-In-Time Exchange Relationships in Industrial Markets , 1988 .

[18]  Gilbert A. Churchill.  A Paradigm for Developing Better Measures of Marketing Constructs , 1979 .

[19]  Gregory T. Gundlach,et al.  The Structure of Commitment in Exchange , 1995 .

[20]  Joseph P. Cannon,et al.  An Examination of the Nature of Trust in Buyer–Seller Relationships: , 1997 .

[21]  D. Garvin.  Competing on the Eight Dimensions of Quality , 1987 .

[22]  Robert W. Ruekert,et al.  Reliability and Validity of Alternative Measures of Channel Member Satisfaction , 1984 .

[23]  F. Dwyer,et al.  Developing Buyer-Seller Relationships: , 1987 .

[24]  David W. Gerbing,et al.  An Updated Paradigm for Scale Development Incorporating Unidimensionality and Its Assessment , 1988 .

[25]  J. Nunnally.  Psychometric Theory (2nd ed), New York: McGraw-Hill. , 1978 .

[26]  R. O'Callaghan,et al.  Adoption Correlates and Share Effects of Electronic Data Interchange Systems in Marketing Channels , 1992 .

[27]  Jan B. Heide.  Interorganizational Governance in Marketing Channels , 1994 .

[28]  K. Cottrill.  REFORGING THE SUPPLY CHAIN , 1997 .

[29]  Patrick E. Murphy,et al.  Ethical and legal foundations of relational marketing exchanges”, Journal of Marketing, . , 1993 .

[30]  Shankar Ganesan.  Determinants of Long-Term Orientation in Buyer-Seller Relationships , 1994 .

[31]  Paul A. Rubin,et al.  Joint Optimality in Buyer‐Supplier Negotiations , 1990 .

[32]  S. Hunt,et al.  The Commitment-Trust Theory of Relationship Marketing , 1994 .

[33]  M. Bensaou.  Portfolios of Buyer-Supplier Relationships , 1999 .

[34]  L. Buchanan.  Vertical Trade Relationships: The Role of Dependence and Symmetry in Attaining Organizational Goals , 1992 .

[35]  John N. Pearson,et al.  Strategically managed buyer–supplier relationships and performance outcomes , 1999 .

[36]  Wesley J. Johnston,et al.  Relationship marketing theory in practice: A case study , 1997 .

[37]  B. Dearing,et al.  The Strategic Benefits of EDI , 1990 .

[38]  P. Larson,et al.  Buyer‐Supplier Co‐operation, Product Quality and Total Costs , 1994 .

[39]  James T. Simpson,et al.  Buyer-seller relationships in the wood products industry , 1997 .

[40]  James A. Narus,et al.  A Model of Distributor Firm and Manufacturer Firm Working Partnerships , 1990 .