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The effects of relationship quality and lean applications on buyer-seller relationships

The primary purpose of this study is to introduce a new measurement instrument for leanness that represents the more philosophical aspect of this paradigm. The secondary purpose is to examine possible interactions between relationship quality and lean applications in buyer-seller relationships and then evaluate their impact on firm performance. Assuming that the lean production has not been developed solely for automotive producers, this study was applied to the retail sector and used to evaluate the extent of lean perception in this sector. Based on the data from 427 supplier firms in the fast moving consumer goods (FMCG) retailing sector, the hypotheses were tested using a structural equation modelling (SEM). The findings indicate that lean applications have a positive effect on firm performance while some of the relationship quality factors (between retailer and supplier) have relatively less effect on firm performance in suppliers' organisations.