Buyer-supplier relations in the Zimbabwean tobacco industry

Abstract

The importance of developing sustainable buyer-supplier relationships cannot be overemphasised in firm performance. However, there is a dearth of literature on how buyer-supplier relationships are organised in industries of the developing countries. In this study, we drew on the existing theoretical framework on buyer supplier relationships to establish the nature of buyersupplier relationships in the Zimbabwean tobacco industry. A survey was conducted on 11 tobacco contracting merchants (buyers) and 42 tobacco growers (suppliers) in the focal industry. Data was collected on buyers and suppliers’ perception of the existence of the three constructs of buyersupplier relationships namely trust, transaction specific investments and collaboration. An analysis of the survey data was carried out using the SPSS statistical program. Although joint action and flexibility were prevalent in the relationship from the supplier perspective, the results disproved our main proposition that the relationships were collaborative. However, the relationships were not purely adversarial either but were leaning more toward this end of the relationship continuum with trend moving toward collaborative. Further analysis is necessary to examine whether the results will hold with a larger supplier sample and for other specific industries. Managers may use these findings as a foundation of further research on how these relationships can be improved and to gauge their current position to enable planning for strategic positioning in the global competitive markets.