Robust supplier relationships: Key lessons from the economic downturn

Lisa M. Ellram and Daniel Krause

Business Horizons, 2014, vol. 57, issue 2, 203-213

Abstract: Recent events in the economic and natural environments have tested buyer-supplier relationships like never before. Based on dyadic buyer-supplier case data from a variety of industries that were deeply affected by the 2008–2009 recession, this article explores how long-term relationships responded to an economic downturn. Prior to the downturn, these mutually dependent relationships all appeared to be very similar to each other and were characterized by significant value-added and social capital stores. However, due to varying degrees of bounded rationality, the relationships were affected differently and responded differently to the downturn. Based on the characteristics of the relationship, we develop a framework of three types of close supplier alliances. This framework can be used to assess such relationships and likely responses to adversity to reduce unpleasant surprises for the alliance partners. This article also provides a set of lessons learned for managers.

Keywords: Buyer-supplier relationships; Alliances; Economic downturn; Social capital; Bounded rationality (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:bushor:v:57:y:2014:i:2:p:203-213

DOI: 10.1016/j.bushor.2013.11.004

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