Do relationship history and norms matter in overcoming inter-organisational difficulties in the procurement function?. (4th June 2010)

• Record Type: Journal Article
• Authors: Burki, Umar; Buvik, Arnt
• Is Part Of: International journal of procurement management. Volume 3:Number 3(2010)
• Page Start: 279
• Page End: 291
• Publication Date: 2010-06-04
• Subjects: purchasing relationships -- relationship history -- inter-organisational behaviour -- relationship duration -- trust -- relational norms -- contractual arrangements -- contracts -- inter-firm businesses -- stability -- comparative advantages -- behavioural uncertainty -- opportunism -- ex post transaction costs -- procurement management; Industrial procurement -- Management -- Periodicals; Industrial procurement -- Electronic information resources -- Periodicals; Business logistics -- Periodicals; 658.7205
• Languages: English
• ISSNs: 1753-8432

Abstract

This study underlines the importance of relationship duration and how it affects procurement and purchasing relationships. Relationship history and relational norms have become significant factors for explaining the scope and stability of purchasing relationships (Dwyer et al., 1987; Sweeney and Webb, 2002; Liu et al., 2009). Relationship duration facilitate in developing a combination of behavioural components, contractual arrangement and trust that overcome organisation problems in inter-firm businesses and it offers an opportunity to ensure stability, and comparative advantages for the procurement partners. The authors explore how the prior length of an inter-firm relationship helps in handling problems associated to behavioural uncertainty, opportunism and ex post transaction costs. The findings highlight the critical role of the prior length of business relationships and how it can help in attenuating organisation problems in procurement relationships. This study supports that relationship duration is a significant antecedent in overcoming organisational difficulties in business relationships and also enhancing relationship quality.