This paper aims to present how the relationship value is created and how it influences the existing buyer-supplier relationship and buyer's performance. The author first introduces the construct of business relationship function to analyze why the business relationship is valuable and investigates the links between relationship function, relationship quality, and buyer's performance. The results indicate that business relationship function has a direct as well as an indirect effect on buyer's performance through the mediating effect of relationship quality. The present study also finds that business relationship function has a stronger influence on relationship quality than it does on buyer's performance. Moreover, the availability of alternative suppliers will weaken the impact of business relationship function on relationship quality.
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