Relationship function, relationship quality, and firm performance

This paper aims to present how the relationship value is created and how it influences the existing buyer-supplier relationship and buyer´s performance. The author first introduces the construct of business relationship function to analyze why the business relationship is valuable and investigates the links between relationship function, relationship quality, and buyer´s performance. The results indicate that business relationship function has a direct as well as an indirect effect on buyer´s performance through the mediating effect of relationship quality. The present study also finds that business relationship function has a stronger influence on relationship quality than it does on buyer´s performance. Moreover, the availability of alternative suppliers will weaken the impact of business relationship function on relationship quality.