Strategic supply management and dyadic quality performance: A path analytical model

A number of studies have addressed the critical role of strategic purchasing and its impact on buyer-supplier relationships. Most studies, however, treat buyer-supplier relationships as a single construct. Recognizing that buyer-supplier relationships are a much more complex phenomenon, this study first identifies three critical constructs including supply base reduction, communication and long-term relationships for a broader conceptualization of buyer-supplier relationships. It then explores the effects of strategic purchasing on these three constructs, along with their impacts on dyadic quality performance. The proposed path analytical model was tested using structural equation modeling. Results provide robust support for the notion that strategic supply management improves the quality performance of both supplier and buyer firms.