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Do relationship history and norms matter in overcoming inter-organisational difficulties in the procurement function?

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  • Umar Burki
  • Arnt Buvik

Abstract

This study underlines the importance of relationship duration and how it affects procurement and purchasing relationships. Relationship history and relational norms have become significant factors for explaining the scope and stability of purchasing relationships (Dwyer et al., 1987; Sweeney and Webb, 2002; Liu et al., 2009). Relationship duration facilitate in developing a combination of behavioural components, contractual arrangement and trust that overcome organisation problems in inter-firm businesses and it offers an opportunity to ensure stability, and comparative advantages for the procurement partners. The authors explore how the prior length of an inter-firm relationship helps in handling problems associated to behavioural uncertainty, opportunism and ex post transaction costs. The findings highlight the critical role of the prior length of business relationships and how it can help in attenuating organisation problems in procurement relationships. This study supports that relationship duration is a significant antecedent in overcoming organisational difficulties in business relationships and also enhancing relationship quality.

Suggested Citation

  • Umar Burki & Arnt Buvik, 2010. "Do relationship history and norms matter in overcoming inter-organisational difficulties in the procurement function?," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 3(3), pages 279-291.
    • Handle: RePEc:ids:ijpman:v:3:y:2010:i:3:p:279-291
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    Cited by:

    1. Jule Naffin & Johanna Klewitz & Stefan Schaltegger, 2023. "Sustainable development of supplier performance. An empirical analysis of relationship characteristics in the automotive sector," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 1753-1769, July.
    2. Surajit Bag, 2018. "Supplier Management and Sustainable Innovation in Supply Networks: An Empirical Study," Global Business Review, International Management Institute, vol. 19(3_suppl), pages 176-195, June.

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