How have buyer-supplier relationships evolved over time, and what drives this transformation? This paper examines the shift from transactional processes based on arms-length agreements to collaborative processes rooted in trust and information sharing. By reviewing these relationships through the lens of transaction cost theory, strategy-structure theory, and resource-based theory, the study maps the evolution of buyer-supplier dynamics over the past two decades. Early supply chain research is compared with current findings to illuminate these changes. The paper extends current theory by proposing the influence of trust and information sharing, while also challenging the idea that supply chain alliances inherently lead to monopolistic practices. It is directly relevant to business strategy and organizational behavior.
Published in the International Journal of Physical Distribution & Logistics Management, this paper fits directly within the journal’s focus on supply chain dynamics and logistics. The examination of buyer-supplier relationships aligns with the journal’s emphasis on understanding how organizations manage their supply chains effectively. This research offers practical insights for businesses seeking to optimize their supply chain strategies and improve inter-organizational collaboration.