How buyer–supplier relationships shape future demand allocation: a grounded theory study

Abstract

This study investigates the factors influencing demand allocation among outsourced suppliers in the telecommunications sector. It addresses a key gap in understanding how buyer–supplier relationships influence both current and future allocation decisions. Grounded in the Relational View and employing Grounded Theory as a methodological approach, this qualitative research analyzes data from interviews with executives from global telecommunications infrastructure providers operating in Brazil. The findings reveal a five-stage process of demand allocation, beginning with supplier pre-approval and ending with feedback integration based on supplier performance and posture. Four main criteria are identified—relationship characteristics, product/service attributes, supplier capabilities, and supplier relational stance—which interact to guide allocation decisions over time. The study shows how present relational dynamics influence future allocation trends, highlighting the cumulative nature of buyer–supplier interactions. For suppliers, the results offer insights into how to align with buyer expectations to increase their share of demand. For managers, the proposed framework supports strategic decisions in supplier engagement and partnership development. By integrating the Relational View with grounded empirical data, this research offers a novel explanatory model for demand allocation decision-making and contributes to supply chain literature by linking present interactions with future-oriented strategies in complex B2B environments.