Unlocking Success: How Buyer-Supplier Relationships Can Boost Business Performance
Buyers who rely heavily on a single supplier may not necessarily harm their business performance. The negative impact of buyer dependence can be lessened by the buyer's ability to learn and adapt (absorptive capacity) and by having a long-term relationship with the supplier. This means that if a buyer can effectively absorb new knowledge and has a strong relationship with their supplier, their business performance can actually improve despite their dependence on that supplier.