Characteristics of mutually beneficial, long-term buyer-supplier relationships are well documented; however, little research has studied how to develop such relationships, especially when buyer-supplier relationships are of asymmetrical power. This dissertation introduces a three-component model of inter-firm benevolence, and argues that inter-firm benevolence is the key element of building stable, mutually beneficial asymmetrical buyer-supplier relationships in the long term. A conceptual framework involving the antecedents as well as the consequences of inter-firm benevolence is proposed in the buyer-supplier context.; Structural equation modeling and regressions were used to estimate the measurements and test the nomological validity of the model with data from a survey of 516 purchasing managers across industries. Empirical results point to the importance of the three-component benevolence model in buyer-supplier relationships, and show that perceived affective, normative and calculative benevolence are measurable independent dimensions of a benevolence construct. Perceived supplier's affective benevolence and perceived normative benevolence are found to be positively related to the buyer's commitment. Further, perceived supplier's affective benevolence is shown to play a more important role for a buyer's commitment while the buyer is of high power than for the buyer who is of low power, while perceived calculative benevolence tends to be effective to obtain commitment from a low power buyer than from a high power buyer. Perceptions of supplier's responsiveness, concessions, relationship-specific investments, and reputation are found to be the antecedents of perceived supplier's affective, normative, and calculative benevolence. Finally, a buyer's commitment determines this buyer's responsiveness, concessions, relationship-specific investments, and knowledge sharing in the relationship. |