Supplier alliance success and failure: a longitudinal dyadic perspective

Many firms have entered into strategic supplier alliances as a means of leveraging technology and as part of their continuous improvement efforts. The advantages and disadvantages from such an approach and the implementation problems are well known. However, knowledge of how these relationships evolve and dissolve over time is weak, hindered in part by cross‐sectional and a one‐perspective approach to empirical research. Presents the results from a survey based study of matched buyer and supplier pairs over time. Examines negative and positive trend relationships for predictive and explanatory causes. Data did not support the theory that the subordinated use of power can help to explain continued success and satisfaction with the relationship nor did negative trend relationships necessarily mean dissatisfaction. However, negative trend relationships appear to be predictable based on overly optimistic expectations that the benefits from such efforts will be forthcoming and reluctance on the part of buying firms to share information.