Buyer–Supplier Relationships: The Impact of Supplier Selection and Buyer-Supplier Engagement on Relationship and Firm Performance

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