Role of Buyer-Supplier Relationship and Trust  In Organizational Performance

Mr. Inayatullah; Mr. Rakesh Narain; Mr. Amar Singh

doi:https://doi.org/10.51768/dbr.v13i2.132201219

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Role of Buyer-Supplier Relationship and Trust In Organizational Performance

Inayatullah , Rakesh Narain, Amar Singh

https://doi.org/10.51768/dbr.v13i2.132201219

Published Online: December 06, 2012

Author Details ( * ) denotes Corresponding author

1. * Inayatullah Assistant Professor, Department of Mechanical Engineering, Shri Ramswaroop Memorila University, Lucknow, Uttar Pradesh, India (inayatu6@gmail.com)

2. Rakesh Narain, Professor, Department of Mechanical Engineering, Motilal Nehru Institute of Technology, Allahabad, Uttar Pradesh, India

3. Amar Singh, Associate Professor, Department of Mechanical Engineering, Kamla Nehru Institute of Technology, Sultanpur, Uttar Pradesh, India

The purpose of the present study is to examine the role of buyer-supplier relationship and trust in the organizational performance. The essence of strong relationship between buyer and supplier is trust, which in turn affects the supplier performance and consequently the organizational performance.

Design/methodology/approach: This study uses correlation and regression to analyze a set of data collected from the survey of 54 Indian manufacturing organizations.

Findings: Results demonstrate that (1) face to face communication and fair treatment of supplier by buyer is positively related to development of trust, (2) development of trust has a positive influence on readiness of supplier to invest in the specific requirements of buyer, (3) strong relationship between buyer and supplier positively affects supplier performance, (4) and supplier performance is positively related to the organizational performance.

Originality/value: This study adds to the extant literature by examining the importance of face-to- face communication, fair treatment of suppliers by the buyers in order to developing trust and buyer- supplier relationship.

Keywords

Supply chain management, Buyer-Supplier relationship, Trust, Supplier performance, organizational performance.

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