Do Buyer-It Logistics Relationship Impact on Buyer Firmís Performance: A Study of Structural Equation Modelling
This paper seeks to examine the degree to which the relationship between the buyer and the IT service provider impacts on the performance of the buyer organization. Business to business trading needs to be supported by mutually beneficial relationships between both parties to enhance better performance and other advantages. This study investigates the hypothesized relationship of a positive link between Buyer- IT service provider relationship and performance of the buyer firm. The literature review has discussed the nature and types of buyer-supplier relationships and relational view theory as the underpinning theoretical stance that relate to B2B relational practices and their applicability to the study. Quantitative data were used as a primary source using self-administered survey instrument. The study sample was selected randomly from the petrochemical industry sector in Egypt and South Sudan. A response rate of 80 % was achieved. The analysis of the research findings using structural equation modeling has confirmed the hypothesized relationship that came in line with the extant literature on buyer-supplier relationship.
Keywords- IT service provider, Buyer-supplier Relationship, relational view, Firm Performance