Theoretical perspectives of supplier -buyer long -term relationships in India

The results of this study can be summarized by five main points. First, this study demonstrated the differential effects of satisfaction and conflict in Indian supplier-buyer relationships. Both conflict and satisfaction have an economic and non-economic dimension. Second, Indian suppliers' coercive power sources negatively influence satisfaction (economic and non-economic), and positively influence conflict (economic and non-economic). Also, suppliers' performance positively influences satisfaction (economic and non-economic), and negatively influences conflict (economic and non-economic). Third, economic satisfaction and non-economic satisfaction positively influence cooperation and switching costs, while economic conflict and non-economic conflict negatively influence cooperation and trust. Satisfaction and conflict mediate the relationship between power sources and performance, and cooperation and trust. Fourth, cooperation and trust positively influence commitment, whereas switching costs do not. Specifically, trust and cooperation act as mediating factors between satisfaction and conflict, and commitment. Fifth, the Indian processed food markets are in transition from a sellers' market to a buyers' market. Although buyers reported high dependence on their major supplier (an indicator of a sellers' market), the results of this study show that Indian suppliers use non-coercive power sources more frequently than coercive power sources, which is an indication of a buyers' market. Practical applications of the findings are discussed.