Performance outcomes of behavioral attributes in buyer-supplier relationships

The purpose of this paper is to explain the impact of relationship capital (trust and commitment) and the exchange climate (communication, conflict resolution and cooperation) on performance satisfaction in the context of buyer–supplier relationships. The study also examines the influence of national culture on the proposed relationships.

A conceptual model and accompanying research hypotheses are tested on data from a survey of 169 US and 110 Brazilian buyers. Structural equation modeling (AMOS 18.0) is used to test the hypotheses.

Results suggest that performance satisfaction is highly dependent on the level of relationship capital and climate of information exchange between buyer and supplier. Quality communication and conflict resolution have the greatest impact on performance satisfaction while trust’s influence is both direct and mediated by the exchange climate.

The study is limited to a two-country sample in a business-to-business (B2B) context. Also, this study examines only the impact of socio-psychological behaviors on performance outcomes; economic variables are not considered.

Results provide insight into what behavioral attributes are most influential in increasing a buyer’s satisfaction with a supplier’s performance in distinct countries. Based on the findings, suppliers can better formulate strategies to enter overseas markets.

This study extends the strategic alliance literature on performance-relevant behaviors to the context of buyer–supplier relationships. In addition, the study contributes to the extant literature by including a sample from an emerging market.