Relationships in buyer-supplier-supplier triads: implications for supplier performance

Purpose: Although supply chain research has extensively examined various aspects of network dynamics, insight into how these relationships affect supplier performance remains limited. This study utilises triads as the smallest observable unit of the supply network and draws on balance theory, complemented by social exchange theory. The study examines how different configurations of buyer-supplier-supplier triads affect the supplier’s operational performance as perceived by the buyer. Design/methodology/approach: A multi-method approach is employed to capture the conjunctive and equifinal nature of triadic relationships. First, a sample of 33 buyer-supplier-supplier triads was surveyed in 2017. These survey data were analysed using fuzzy-set Qualitative Comparative Analysis. Then, a selection of triad members was interviewed in 2021. This interview data was analysed using a process tracing approach to contextualise the survey results. Findings: The results show that high supplier performance in a buyer-supplier-supplier triad is achieved through strong social bonds between the buyer and one supplier, high supplier dependence and intense competition among the two suppliers. In contrast, low-performing triads show weak social bonds between the buyer and suppliers and low interdependencies and coopetition between the two suppliers. Originality/value: Research has primarily focused on the dyadic buyer-supplier relationship when considering the impact of relationships in the supply network on supplier performance. This study offers the first indications of how buyer-supplier and supplier-supplier relationships jointly influence supplier performance and provides relevant insights for managers to leverage the relationships with and among their suppliers to their advantage.