* Assistant Professor, Department of Mechanical Engineering, Shri Ramswaroop Memorial University, Lucknow, Uttar Pradesh, India.
** Professor, Department of Mechanical Engineering, Motilal Nehru Institute of Technology, Allahabad, India.
*** Associate Professor, Department of Mechanical Engineering, Kamla Nehru Institute of Technology, Sultanpur, Uttar Pradesh, India.
Online published on 15 January, 2013.
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.
This study uses correlation and regression to analyze a set of data collected from the survey of 54 Indian manufacturing organizations.
Results demonstrate that (1) face to face communication and fair treatment of supplier by buyerispositively 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.
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.
Supply chain management, Buyer-Supplier relationship, Trust, Supplier performance, organizational performance
