An Empirical Study of Buyer–Supplier Relationships within Small Business Organizations

Abstract

A paradox exists in small business organizations; although effective buyer–supplier relationships are essential to the success of small businesses, these organizations may not have the purchasing and selling power in terms of managerial resources to implement them. This provides us an opportunity for research to determine how well developed are buyer–supplier relationships within small business organizations. Grounded in transaction cost and resource dependence theory, this paper presents and empirically tests a model that examines the relationships between buyer and supplier specificity and long‐term buyer–supplier relationships and the latter's impact on organizational performance from the buyers' perspective. The results of this study provide insight into the development and impact of buyer–supplier relationships within small business organizations. Several managerial implications can be determined.

Additional information

Notes on contributors

Jeffrey H. Adams

Jeffrey H. Adams is Associate Professor Emeritus in the Management, Marketing and Business Administration Department at the University of Houston‐Downtown.

Faiza M. Khoja

Faiza M. Khoja is Associate Professor of Management in the Management, Marketing and Business Administration Department at the University of Houston‐Downtown.

Ralph Kauffman

Ralph Kauffman is Associate Professor Emeritus in the Management, Marketing and Business Administration Department at the University of Houston‐Downtown.