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Managing for Success: The Role of Transactional and Relational Mechanisms in Buyer-Supplier Relationships

Author

Listed:
  • Khuram Shahzad

    (University of Vaasa, Finland)

  • Josu Takala

    (University of Vaasa, Finland)

  • Tahir Ali

    (University of Vaasa, Finland)

  • Ilkka Sillanpää

    (University of Vaasa, Finland)

Abstract

Firms are collaborating more in supply chain network and identified the importance of business relationships. This idea was embraced by academic and empirical research in operations management since last decade. Therefore, the purpose of this study is to develop a comprehensive integrated conceptual and empirical framework which elaborates the role of transactional and relational factors to highlight buyer-supplier relationship performance. While, limited studies explored these factors separately neither provide the dynamic interactive role of transactional and relational factors in an integrated framework. Through multiple case studies, findings reveal that impact of relational factors of trust and communication has constructive influence in reducing the transaction cost and improving relationship performance. This study contributes to debate on managing complex business network relationships by providing a combined theoretical setting (transaction cost economics and social exchange theory) and empirically proven integrated model. Managers can enhance the operational performance by selecting the most suitable constructs.

Suggested Citation

  • Khuram Shahzad & Josu Takala & Tahir Ali & Ilkka Sillanpää, 2015. "Managing for Success: The Role of Transactional and Relational Mechanisms in Buyer-Supplier Relationships," Management, University of Primorska, Faculty of Management Koper, vol. 10(1), pages 35-59.
    • Handle: RePEc:mgt:youmng:v:10:y:2015:i:1:p:35-59
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    Cited by:

    1. Faridzah Jamaluddin & Nizaroyani Saibani, 2021. "Systematic Literature Review of Supply Chain Relationship Approaches amongst Business-to-Business Partners," Sustainability, MDPI, vol. 13(21), pages 1-25, October.

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