Exploring Determinants of Closeness in Manufacturer–Supplier Relationships: A Study of Select Indian Manufacturing Firms

Abstract

Abstract The phenomenon of rapid globalization and technological innovation has provoked the idea of maintaining relationships with suppliers. Supplier management is gradually shifting from a transaction-based arm's-length approach to a relationship-based cooperative approach to procure component supply. Managing relationships with key suppliers is successful when closeness is said to have been established in the relationship. Relational exchange here is identified as the foundation of relationship marketing. The present study endeavors to explore and establish the determinants of closeness in a manufacturer–supplier relationship. A research framework implying the determinants of relationship closeness between a manufacturing firm and its supplier(s) is proposed and tested empirically. Information is collected from select manufacturing firms in India, and data analysis is done with SPSS. Finally, the theoretical and managerial implications of the study are discussed. KEYWORDS: closenessmanufacturer–supplier relationshiprelationship marketing