The Impact of Relational Closeness, Relational Capability on Supply Flexibility

This study aims to examine how various types of relational attributes can be beneficial to supply flexibility in terms of physical supply flexibility and purchasing flexibility. Using survey data from a sample of SMEs from mainland China, we demonstrate that relational closeness is positively related to both physical supply flexibility and purchasing flexibility. We also find that relational capability is positively related with purchasing flexibility, but not related with physical supply flexibility. Theoretical and managerial implications are discussed.