Purchasing Module: Literature Review on Buyer-Supplier Relations

This literature review delves into the critical relationship between buyers and suppliers within the realm of purchasing, examining its multifaceted effects on business processes and supply chains. The review begins by establishing the importance of understanding these relationships, particularly how they influence purchasing trends and habits. The methodology section outlines the selection process of articles, emphasizing the use of academic journals and the criteria for ensuring the quality and relevance of the sources. The discussion section analyzes the similarities and differences among the selected articles, highlighting the impact of buyer-supplier relationships on supply chain effectiveness and the application of motivational theories within these interactions. The review emphasizes the importance of a good relationship between the buyer and supplier. The review analyzes the impact of the supplier-buyer relationship in purchasing. The conclusion summarizes the key findings, reinforcing the significance of buyer-supplier relationships in shaping purchasing outcomes and overall business success.

Running head: LITERATURE REVIEW 1
Literature Review
Student’s Name
Institution
Date

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1. Introduction
1.1. Reason for writing the literature review
A literature review plays an essential role in presenting information that is associated with a
topic of research. The literature review is aimed at increasing knowledge about a topic in
purchasing; buyer-supplier relationship. The relationship between the buyer and the supplier is
associated with purchasing because this is the type of business; supplying and buying, that the
two parties engage in and therefore it is paramount to understand the relationship and how it
affects the purchasing process.
1.2. The importance of the topic
The topic that has been selected is important in purchasing and also procurement. In
purchasing, there are different factors that are considered, and they have different effects on the
parties involved. One of the factors is associated with the relationship status that is between the
parties that are involved. The relationship between the supplier and the buyer is a factor that
should be considered during purchasing. The reason behind it is associated with the fact that the
relationship affects the purchasing trends and habits. By understanding the relationship between
the supplier and the buyer, it will be easier to understand the influence that relationships have on
purchasing processes.
1.3. The Scope
The scope of the literature review will be limited to the relationship between buyer and
supplier with the main aim of paying closer attention to the topic. Purchasing is an important
topic in this case, and this is because it is the core of many business processes. The main reason
why most of the organizations are in business is to produce goods that they expect the customers

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to the buyer. At the same time, organizations are also included in the process of purchasing when
they are looking for raw materials or outsourcing some of the services that it might not have
within the organization.
1.4. Research Question
The literature review is aimed at answering the following question;
a. What is the effect of the supplier-buyer relationship in purchasing?
1.5. Outline
The literature review will accommodate and utilize four different titles. The titles will be.
a. Introduction
b. Methodology
c. Discussion
d. Conclusion
The organization of the outline is aimed at planning the ideas of the literature review in a
way that there is smooth flow from one idea to another. At the same time, it is aimed at
promoting order and proper planning.
2. Research methodology
2.1. Selection of articles
The selection of the articles was guided by the requirements and the instructions that were
provided along with the assignment. The sources of the articles were academic competitive to
make sure that the quality and authenticity would not be compromised. The school library was
also an essential source of the articles because it helped to make sure that the right articles were

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found. The e-library also played an essential role in providing articles that were essential to the
literature review. Different academic journals; which will be outlined later were used. The
instructions were specific on the ranks of the academic journals, and that is why the specific
academic journal was the only ones used in this case.
2.2. Why the approach?
The approach was motivated by different factors. The first factor was associated with the
strength and reliability of the literature review. A literature review is informative, and that is why
it is important to make sure that the best materials are used. In the case of the literature review, it
was aimed at making a strong argument that would be supported by nothing less than facts and
evidence-based conclusions. The approach that is used to collect the evidence that will be used
dictates if the points that will be highlighted will be strong, or they will not be able to support the
hypothesis sufficiently.
The second factor is associated with the promotion of credibility. There are a lot of articles at
the disposal of researchers, but not all articles qualify to be used in research. The reason behind it
is because they are not credible, and the authors cannot be trusted because they might lack prior
knowledge of the research topic. The approach made sure that only credible articles were used.
At the same time, the approach made sure that the stipulated guidelines on the category of the
articles that were supposed to be used were adhered to.
The third factor was a combination of relevance and timeliness. The types of articles that are
used in the literature review dictate if the literature review will present information that is out of
topic or information that is aligned with the topic. The approach that was used made sure that the
information that was collected was in line with the topic that was selected. At the same time,

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timeliness was promoted in this case. The articles that were selected were updated, and that
meant that the data was recent, and therefore, the findings would be applicable in the modern
day.
2.3. Articles considered and the article selected
The articles that were taken into consideration were 68, but only seven were selected. The
reason why there was a huge gap was because of the instructions that were provided on the
specific articles that ought to be picked. Accessing academic journals were not a challenge but
finding the journals that were recommended was a challenge. Aligning the journals with the
topic that was selected was also an issue that led to the use of specific journals. The reason why
only seven articles were selected was that only seven articles were needed for the literature
review.
2.4. Academic Journals
The articles were selected from the academic journals that were presented with the
instructions. The following were the academic journals that were used;
a. Production Planning and Control
b. International Journal of Public Sector Management
c. Journal of Business & Industrial Marketing
d. International Journal of Retail & Distribution Management
e. International Journal of Public Administration
f. Journal of Business & Industrial Marketing
2.5. Analysis of the Quality of the Articles

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The quality of the articles that were selected was based on different factors. The first factor
was the content of the article. The content had to be relevant to the topic of focus. Every article
that was selected presented ideas that added more knowledge and information about the topic
that was selected. The source of the article was also a consideration as far as that aspect of the
quality is concerned. Different journals are available for researchers or readers who want to
explore some topics. However, the credibility of the journal affects the quality of the article. The
articles that were selected came from journals that are reliable and academically approved. The
authors who wrote the articles were also competitive researchers. One of the best ways of
knowing the quality of a material is by looking at the author of the material. If the author is well-
known and qualifies to conduct research, it becomes evident that the article can also be relied
upon.
Changes are taking place, especially in the world of business. Some of the practices which
were embraced a few years ago have become irrelevant. In this respect, when researching matters
that affect business or business topics, it is vital to focus on research that has not lasted for more
than fifteen years. In the case of the literature review, the year of the research findings was a
consideration. All articles that were used were less than five years old. The articles that were
selected in this case were not older than fifteen years, and that meant that they are updated. In
summary, the literature review guidelines presented criterion that was to be used during the
selection process. The criterion helped in acquiring articles that were of high quality.
3. Discussion
3.1. Similarity in sub-topics

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"The importance of key supplier relationship management in supply chains" and "A multiple
buyer-supplier relationships in the context of SMEs' digital supply chain management," are the
two articles that have focused on the same topic. All articles in the literature review have focused
on the supplier-buyer relationship, but the two have taken a different perspective. The articles
have not focused more on the benefits and the shortcomings of the relationships, but they have
connected the relationship of the buyer and seller to the supply chain. The two articles have
outlined the importance of the buyer and seller in the supply chain. The supplier of raw materials
to the manufacturing company affects the supply chain. The attitude that the supplier has towards
the buyer affects the business between the two. The importance of the relationship between the
supplier and the buyer is that it makes the supply chain effective. A good relationship motivates
the supplier to provide the goods to the buyer on time. When the goods reach the buyer in time,
the processes that affect the supply chain are not slowed down, and that means that the
effectiveness of the supply chain is promoted.
3.2. Similarities in definitions and theories
Considering the fact that the topic was the consideration that was made during the selection
process of the article, there are many areas that the articles have agreed on. The first area is
associated with the impact of the relationship between the buyer and the supplier. All articles
have agreed that there is an impact that is caused by the relationship between the supplier and the
buyer. The articles have focused on the advantages of a good relationship between the buyer and
the supplier. The buyer and the supplier have a lot of effects on the functions of the organization.
Their relationship might affect an organization positively or negatively. When the relationship is
good, it sets a certain mood that affects other operations. For example, a good relationship
between a manufacturing company and the supplier of the raw materials affects all processes

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because the company depends on raw materials. When the relationship is at its best, the supplier
is likely to be punctual in delivering raw materials, and that affects the production process
positively.
All articles have focused on the theory of motivation. The motivation agent, in this case, has
been termed as the relationship. The articles have demonstrated that positive motivation leads to
effectiveness and productivity. The theory of motivation states that positive deeds and attitude
towards people affect their productivity, commitment, and dedication. A good relationship
fosters good attitude. The attitude affects the reactions of the people involved, and they react
positively. The reason why they react positively is that they have been motivated by the attitude
of the other. In this case, it is apparent that the authors have shown the importance of a good
relationship between the supplier and the buyer.
. Caniato et al. (2016) have shown how good relationships can influence the supplier and the
buyer to come up with solutions that might be affecting them. In this case, the authors have taken
the theory of motivation to a secondary level, and this is where people are motivated to move out
of their ways to make sure that everything is right. The authors have created connections
between finances which are generated during purchasing and the effectiveness of a supply chain.
They have also shown how financial motivation can affect the supplier thus extending the
positive effects to the entire supply chain. At the same time, the authors have also stated that a
bad relationship is also likely to come with negative effects. When the relationship between the
supplier and the buyer is not good, each is left to deal with his or her problems. Teamwork is
paramount in looking for solutions, and that is why it is imperative for organizations to have
employees who work together. When the relationship between the supplier and the buyer is

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affected negatively, there is a lack of motivation, and that limits the two from working as a team
which affects the organizations they are working for.
Tangpong, Michalisin, Traub, & Melcher (2015) and Teller, Kotzab, Grant, & Holweg
(2016) agree that establishing relationships is not an easy task. The two articles have stated that
there is a need for management of relationships. Tangpong et al. (2015) have focused on some of
the problems that face supplier-buyer relationships. The problems are both internally and
externally motivated. However, the article has also focused on the best ways to deal with the
problems. One of the ways that have been highlighted is managing relationships by making sure
that the two parties who are involved. On the other hand, Teller et al. (2016) have focused more
on the management of relationships. The authors have agreed that any relationship that is of high
value to an organization should not be viewed from a natural perspective where it is expected to
grow naturally. Instead, it is important for such relationships to be managed to make sure that
they are successful.
Teller et al. (2016) and Prior (2012) have focused more on the importance of the supplier-
buyer relationship. However, each of the articles has taken a different perspective. Teller et al.
(2016) have focused on the need to manage supplier-buyer relationships. The reason why the
authors have made the point is that they have been convinced that the relationship is important
and therefore, there should be an effort that should be shown to make sure that relationship is
built. Prior (2012), looks at the topic of the importance from a different perspective. He states
that when the relationships are good between the supplier and the buyer, the level of
competitiveness is increased. The reason behind it is because their relationship affects the overall
performance of an organization, thus making the organization successful.

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Compared to all other articles, Mark McKevitt & Davis (2014) have taken a different
perspective to argue the topic of supplier-buyer relationship. The authors argue that in the
procurement process, the supplier is the major beneficiary. In this respect, a good relationship
between the supplier and the buyer benefits the supplier because the supplier gets a market for
his goods. Looking at the topic from this perspective has helped to point out the biggest
beneficiary of the relationship between the supplier and the buyer. The theory that is evident in
the article can be support by real-life scenarios in the world of business. Organizations are
targeted by many suppliers because of their levels of the consumption of the raw materials. It is
more difficult for a supplier to get a buyer than for a buyer to get a supplier. Therefore, it is
evident that the major beneficiary of the supplier-buyer relationship is the supplier.
3.3. The contribution of each article
Each of the articles has played a vital role in adding information and knowledge about the
supplier-buyer relationship. Purchasing is affected by a significant percentage by the relationship
between the supplier and the buyer. Caniato et al. (2016) have significantly added to the
knowledge of the topic by making connections between finance and the supply chain. In this
case, they have indirectly highlighted the effects that the buyer; as the source of finance, has on
the supply chain. The authors have helped to understand that solutions are in most cases found
when people are in good terms, and this should be considered even in the relationship between
the buyer and the supplier. When good relationships are maintained, the buyer continues buying
while providing finances which facilitate the activities of the supplier. When the activities of the
supplier are financed, the supply chain is affected in a positive way.

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Mark McKevitt & Davis (2014) have added knowledge on the significance of the
relationship between a supplier and a buyer from the perspective of the supplier. The authors
have helped to understand that the supplier is the major beneficiary of a relationship between the
supplier and the buyer. Rungsithong, Meyer, & Roath (2017) have touched on real-life benefits
that are gained when there is a good relationship between the buyer and the supplier. The articles
have helped to understand and know more about the applicability of the topic in real life.
Scuotto et al. (2017) have focused on the effects of relationships between the buyer and the
supplier in SMEs supply chain. The supply chain can be affected by the attitude of the
stakeholders. The authors have added to the knowledge of the effects of good relationships
between the supplier and the buyer not only on the supplier and the buyer but also on the
stakeholders in the supply chain. The progress that has been made in establishing good
relationships between buyers and the suppliers has been outlined by Tangpong et al. (2015). The
authors have made it clear that the value of the relationships has been identified and many
organizations are working on establishing s strong relationship. As a result, there is progress that
is made as far as the topic is concerned. Teller et al. (2016) and Prior (2012) have focused on the
benefits that come along with good relationships between the supplier and the buyer. The authors
of the two articles have also made a relevant point that is aimed at making sure that good
relationships should be maintained. The authors believe that the management of relationships is
essential, and it should be embraced by many organizations.
3.4. Bonus question
The seven articles that have been used have provided substantial evidence to the topic of
focus, but they have also demonstrated weaknesses. Caniato, Gelsomino, Perego, & Ronchi,

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(2016) and Mark McKevitt & Davis (2014) have focused on a much broader topic, and that has
limited the article from answering the research question in details. Rungsithong et al. (2017)
have narrowed the topic too much by concentrating on Thai, and that has limited the research.
Focus on a narrow area of location might limit the applicability of the lessons in a broader area.
Scuotto et al. (2017) have focused on SMEs, and that has limited the application of the findings
in large organizations. Tangpong et al. (2015) have focused on many areas of research. In the
process of trying to research every area, the article has failed to answer the research question in a
detailed manner. Teller et al. (2016) and Prior (2012) have demonstrated biases. The authors
have focused more on the positive aspect of relationships, and that means that the reader is only
given one side of the story.
4. Conclusion
The articles do not seem to disagree in any of the points that have been highlighted.
However, they all agree that buyer-supplier relationships have a lot of effects on organizations.
The knowledge that is currently present is that the relationship between a supplier and a buyer
affects processes. However, there is a gap when it comes to knowing the magnitude of effects
that buyer-supplier relationships have on organizations. The answer to the research question is
that supplier-buyer relationships affect the purchase process through motivation to purchase;
when the relationship is good, and through frustration to purchase; when the relationship is not
good. The limitation was evident in the concentration of specific materials. The literature review
needed the articles to come from specific sources and that frustrated the diversity of collecting
information. The overall quality of the articles is high. All the articles have been selected from
level 2/C, and that means that these are high quality and reliable article.