Buyers' perceptions on the impact of strategic purchasing on dyadic quality performances

Carr and Pearson (1999 J. Oper. Manage. 17 (5), 497-519) find that strategic purchasing has direct and indirect positive associations with buyer financial performance. An important question arises, however, as to whether the impact of strategic purchasing is equally appropriate for supplier performance. An inequity perception may affect transaction-cost calculus and lead to alliance failure if ignored. Using survey responses from 163 firms, we posit and first show that negative inequity perceptions really exist from buyer's perspective and the strategic purchasing - quality performance relationships are mediated by buyer-supplier relationship. The findings not only indicate that inequity perception assumption should be augmented to the basic transaction cost economics framework, but also suggest supplying firm managers help buying firm purchasing function to become a strategic weapon.