Supplier-supplier relationships and their implications for buyer-supplier relationships

Many researchers have investigated the dynamics of buyer-supplier relationships and have, in general, posited the importance of long-term, cooperative relationships. However, the relationship between suppliers (i.e., supplier-supplier relationship) and its potential impact on the buyer-supplier relationship have not yet been considered. This research addresses a void in the literature, especially given that many buyers now work with a smaller supplier base and deliberately try to foster certain types of supplier-supplier relationships. Building on the existing buyer-supplier and strategic alliance literature, we propose three archetypes of supplier-supplier relationships. This research further illustrates the strategic role of the buying firm in structuring these relationships and explores the managerial implications of different types of supplier-supplier relationships from the perspectives of both the buying firm and its suppliers.