Classifying relationship structures: relationship strength in industrial markets

Abstract

Although many authors examine relationships, few attempt to classify alternative structures. In this research a relationship strength construct is developed to distinguish among alternative relationship structures based on a key mediating variable set derived from an assessment of the dominant behavior process and economic content variables underlying important buyer‐seller relationships. Results using a cluster analysis procedure based on a sample of 200 industrial company respondents from the UK engineering, electronic and telecommunications sectors support the classification. This allows us to discriminate between four relationship structures in main buyer‐supplier relationships, which are labeled: bilateral, recurrent, dominant partner, and discrete. Such a classification can provide managers with a mechanism for analyzing and planning for the development of their inter‐firm relationships.