BUYER-SUPPLIER RELATIONSHIPS IN THE SOUTH AMERICAN AUTOMOTIVE INDUSTRY
This study analyzes the relationships between buyers and suppliers in South American automotive industry. The relations between buyers and suppliers can affect the supply chain performance as they impact stock levels, prices, operations flexibility, opportunistic behaviour, commitment and trust among the players. In the study, the transactional benefits, meaning, the advantages obtained by the customer from the service provider, are included to identify their impact on relationship satisfaction and relational commitment. A survey approach is used to evaluate the relationships of suppliers and buyers and interpret their behavioural intentions. Using Structural Equation Modelling, the impacts of relationship quality, commitment, trust and satisfaction have been tested,taking into account the behavioural intentions of buyers towards suppliers, their verbal communication and price sensitivity. The model combines the relational benefits from the quality of relationship approach and specifies how these relational benefits can influence two key results of a relationship – word of mouth communication and loyalty. The research findings suggest that opportunistic behaviour is an important construct in buyer-supplier relationships and must be managed and measured with care. The paper attempts to make a contribution to the understating of buyersupplier relationships and proposes an analytical
model for researching relationships in supply chain management.