Firms are collaborating more in supply chain network and identified
the importance of business relationships. This idea was embraced by
academic and empirical research in operations management since last
decade. Therefore, the purpose of this study is to develop a comprehensive
integrated conceptual and empirical framework which elaborates
the role of transactional and relational factors to highlight buyer-supplier
relationship performance. While, limited studies explored
these factors separately neither provide the dynamic interactive role
of transactional and relational factors in an integrated framework.
Through multiple case studies, findings reveal that impact of relational
factors of trust and communication has constructive influence in reducing
the transaction cost and improving relationship performance. This
study contributes to debate on managing complex business network
relationships by providing a combined theoretical setting (transaction
cost economics and social exchange theory) and empirically proven integrated
model. Managers can enhance the operational performance by
selecting the most suitable constructs.