Proceedings of the International Conference on Advanced Research in Business, Management and Economics
Supplier Satisfaction in Buyer-Supplier Relationships: Assessment from Supplier Perspective
The purpose of this study is to explore the factors that affect the supplier satisfaction in buyer-supplier relationships and to find out their causal relationships. This is done by identifying the related factors and their order in terms of its contribution to the overall supplier’s satisfaction level. The paper develops a conceptual framework tested through a survey. Partial Least Squares path modelling (PLS) was the technique chosen to evaluate the proposed model. The results show that the important positive effects on supplier satisfaction in buyer-supplier relationships are the ones linked to Cooperation, Coordination, Payment policy, purchasing policy by this order. Surprisingly, the factor related to technology and digitization does not affect supplier satisfaction according to the study. Because of the survey approach, the research results are limited to the data collected. Further, the study is limited by relatively small sample size. This study shows practical guidance to the buying firms to measure level of supplier’s satisfaction on its various activities and shows the areas for further improvement. Our findings might help managers from buying organization to better evaluate their relationships with suppliers and align their strategies accordingly. This research replicates and extends the previous research on supplier satisfaction in buyer-supplier relationship. This paper investigates why supplier’s satisfaction is relevant for buyer-supplier relationships and what are the relevant factors associated. The findings expand the current understanding of these concepts by building upon practitioner input and survey data.