Leveraging relationship orientation and its impact on relationship outcomes

Abstract

Purpose This study seeks to: empirically measure relationship orientation along a continuum from operation to strategic; evaluate the impact of relationship orientation on the actual activities implemented within the relationship; and determine the impact of these relational activities on relationship effectiveness and business performance. Design/methodology/approach A survey research design following the total design method was used to collect the data. Multi‐item measures were developed to measure relationship orientation and relational activities while existing scales were used to measure competitive intensity and relationship outcomes. The study sampled purchasing managers and the unit of analysis in this research was the business relationship between a buying firm and supplier firm. Findings This study provides evidence that relationship orientation has a direct and positive influence on the manner in which buying firms execute relationships with supplier organizations. Additionally, the findings suggest firms with a strategic orientation would have a greater likelihood to implement the relationship in terms of utilization of interorganizational guidelines and resource commitment. Similarly, firms that have a more operational orientation would likely not expend as much effort in relationship implementation. Finally, the study demonstrates a positive relationship between the activities used in buyer‐supplier interaction and both relationship effectiveness and business performance. Originality/value This paper contributes to the understanding of relationship orientation and in particular on how variation in relationship orientation impacts the nature of relational activities deployed in buyer‐supplier interaction.