An Empirical Study of Buyer-Supplier Relationships within Small Business Organizations

A paradox exists in small business organizations; although effective buyersupplier relationships are essential to the success of small businesses, these organizations may not have the purchasing and selling power in terms of managerial resources to implement them. This provides us an opportunity for research to determine how well developed are buyersupplier relationships within small business organizations. Grounded in transaction cost and resource dependence theory, this paper presents and empirically tests a model that examines the relationships between buyer and supplier specificity and long-term buyersupplier relationships and the latter's impact on organizational performance from the buyers' perspective. The results of this study provide insight into the development and impact of buyersupplier relationships within small business organizations. Several managerial implications can be determined.