A Micro-Foundation Lens on Buyers' and Suppliers' Working Relationships Exchange: The Power of Respectful Interactions

Background:
Patterns of interaction between individual agents representing buyers and suppliers are vital for value co-creation in inter-organizational relationships. However, the micro-level relational dynamics driving operational performance remain underexplored.

Objective:
We examine why and how respectful engagement by a buyer’s agent toward a supplier’s agent enhances supplier operational performance, through the cultivation of relationship commitment and the moderating effect of industry knowledge intensity.

Methods:
We tested a moderated mediation model using time-lagged data from 156 manufacturing dyads, analyzing the influence of respectful engagement on supplier performance (on-time delivery and quality), through commitment to the working relationship, as well as the moderating role industry knowledge intensity.

Results:
A buyer, by engaging respectfully, fosters the development of a supplier's commitment to the working relationship, which in turn improves supplier on-time delivery and quality. Contrary to expectations, however, this indirect effect is consistent across industries regardless of knowledge intensity.

Conclusions:
The paper highlights the transformative potential of positive interpersonal interactions in buyer-supplier working relationships, contributing to behavioral operations management by demonstrating how micro-relational mechanisms underpin operational outcomes across diverse industry contexts.