Examining buyer-supplier relationships within a service sector context

Purpose – The primary aim of this research is to explore buyer-supplier relationships within a service sector context.
Design/methodology/approach – To address the primary aim, both quantitative and qualitative approaches were utilised. A questionnaire was issued to selected buyer and supplier groups in order to determine relationship issues associated with insurance claims. The questionnaire was complemented by a number of semi-structured interviews with buyers and suppliers across each spend category.
Findings – The results of this research indicate that there are significant gaps between buyer and supplier expectations concerning how relationships should evolve and that the issues of power and trust will need to be explored in greater depth if relationships are to be optimised.
Practical implications – This research is of practical use to service sector companies attempting to examine how to develop effective buyer-supplier relationships. It is of particular use to service buyer operations within the insurance sector, that is moving from the traditional cash compensation approach to a replacement goods approach.
Originality/value – Very little has been written about buyer-supplier relationships in the insurance sector and as such this paper provides an insight into issues relating to such relationships within this unique service sector context.