Buyer-Seller Relationships: Material versus Logistical Transactions

Document Type

Conference Proceeding

Conference Track

Supply Chain Management/ International Marketing/ Business to Business Marketing

Publication Date



Several supply chain buyer-seller exchanges become inefficient or get terminated due to poor resource allocation, which become costly because of litigation issues and finding new partners. Because a supply-chain participant’s buying and/or selling role and the type of industry may affect the way in which resources are deployed, the authors illustrate how these supply chain participants may better align their resources commensurate with their role in the supply chain to reduce inefficiencies. We explore and describe this phenomenon gathering survey data from material buyers and Third Party Logisticians because the roles of these supply-chain participants are intertwined but different. Resource allocation for these two supply chain exchanges were examined and compared using the partial least squares, structural equation modelling approach. Bilateral dependence and relational norms (flexibility and information sharing), logistics service, customer- oriented services, trust and commitment, formed the constructs for this study; dependence and relational norms are framed as second-order constructs and financial and attitudinal performance as outcomes. Both the overall models were supported. Furthermore, three paths were significantly different across the two models: bilateral dependence on commitment, relationship norms on commitment (material model higher), and relational norms on trust (logistics model higher).

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Digital Commons@Georgia Southern License

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