An integrative approach to assessing buyer-supplier relationships: scale development and validation

Abstract

Purpose: The research investigated relations between factors used to evaluate the quality of buyer-supplier relationships (BSRs): perceived performance of the supplier, satisfaction with supplier, and trust in the supplier; and to develop an instrument to evaluate BSRs (a BSRs evaluation scale). Design/methodology/approach: We applied the psychometric testing of the BSRs measurement using exploratory factor analysis and confirmatory factor analysis. We applied structural equation modeling (SEM) to understand the interrelations of factors underlying BSRs. Findings: The BSRs evaluation scale consists of three factors: perceived performance of the supplier, satisfaction with the supplier, and trust in the supplier. The results provide empirical evidence of the validity, reliability, and generalizability of the presented measurement. Originality/value: The study developed a novel measurement instrument that integrates BSRs’ multidimensional constructs. It explains and confirms the significant roles of satisfaction with the supplier, trust in the supplier, and perceived performance of the supplier in shaping the BSRs’ quality. Furthermore, we provide evidence that in BSRs goodwill- and competence-based trust integrate into a single factor.