Buyer‐supplier relationships

Purpose To analyze the impact of supplier selection and buyer‐supplier engagement on the performance benefits attributable to buyer‐supplier relationships, and the effect of these benefits on broader measures of buyer performance. Design/methodology/approach Analysis is conducted using a structural equation model using survey data. Findings Results demonstrate the positive influence of engagement and supplier selection on relationship performance. They also demonstrate that the success of the relationship directly and positively affects buyer performance. Research limitations/implications Additional analysis is required to examine whether the results hold for specific industry or purchase scenarios, and to identify other dimensions of the constructs of interest. Practical implications Buyers should pay attention to selecting the right suppliers and developing the infrastructure that will enable successful buyer‐supplier relationships. Originality/value The paper provides empirical evidence of the impact of cultivating buyer‐supplier relationships on relationship success, and how this directly impacts business performance.