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Buyer–supplier relationship and operational dynamics

Author

Listed:
  • Rajagopal

    (Monterrey Institute of Technology and Higher Education, ITESM, Tlalpan)

  • A Rajagopal

    (Monterrey Institute of Technology and Higher Education, ITESM)

Abstract

This paper examines the effectiveness of business-to-business relationships in reference to the suppliers of office equipments serving the industrial accounts in Mexico. The study addresses broadly the performance-related issues as to what extent is the impact of quality of services responsible for doing business with the organizational buyers. Discussions in the paper also analyse the impact of channel function performance on relationship quality, which is moderated by the extent dependence structure of the relationship. The results of the study showed that the impact of buyer–supplier co-dependency and relationship quality significantly affects the supplier performance. It has been argued in the paper that the market orientation is positively associated with measures of channel performance such as service quality and the extent of buyer satisfaction. The study also demonstrates that in the processes of managing business relationships, cognitive dimensions like trust, commitment, and low level of conflicts provide ‘win-win’ situation for buyers and suppliers. Finally, this study attempts to make contributions to the literature on buyer–supplier relationships towards cognitive and relational perspectives leading to optimizing functional efficiency of a firm.

Suggested Citation

  • Rajagopal & A Rajagopal, 2009. "Buyer–supplier relationship and operational dynamics," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(3), pages 313-320, March.
    • Handle: RePEc:pal:jorsoc:v:60:y:2009:i:3:d:10.1057_palgrave.jors.2602560
    DOI: 10.1057/palgrave.jors.2602560
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    References listed on IDEAS

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    1. Mehmet Bac, 2000. "Switching costs and screening efficiency of incomplete contracts," Canadian Journal of Economics, Canadian Economics Association, vol. 33(4), pages 1034-1048, November.
    2. Wolfgang Ulaga & Andreas Eggert, 2006. "Relationship value and relationship quality: Broadening the nomological network of business-to-business relationships," Post-Print hal-00482522, HAL.
    3. Katherine Doornik, 2006. "Relational Contracting in Partnerships," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 15(2), pages 517-548, June.
    4. Rajagopal, 2005. "Measuring Variability Factors in Consumer Value for Profit Optimization in a Firm - A Framework for Analysis," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 1(1), pages 85-103, January.
    5. Mehmet Bac, 2000. "Switching costs and screening efficiency of incomplete contracts," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 33(4), pages 1034-1048, November.
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    Cited by:

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