Buyer-Supplier Partnership Quality and Supply Chain Performance: Moderating Role of Risks, and Environmental Uncertainty

Abstract

In this paper, we examine the relationship between buyer-supplier partnership quality, and supply chain performance, in the presence of supply and demand side risks and environmental uncertainty. Based on the theoretical underpinnings of resource-based view, relational capital theory, and transaction cost economics, we propose a positive relationship between partnership quality and supply chain performance, which is strengthened in the presence of high demand and supply-side risks, but weakened in the presence of high environmental uncertainty. Empirical evidence, based on the survey data of 127 U.S. firms supports a majority of our arguments. We discuss theoretical and practical ramifications of these findings and offer future avenues of research.

Keywords: Partnership Quality, Supply Chain Risk, Environmental Uncertainty, Supply Chain Performance