A micro-foundation lens on buyers’ and suppliers’ working relationships exchange: The power of respectful interactions

Background Patterns of interaction between individual agents representing buyers and suppliers are vital for value co-creation in inter-organizational relationships. However, the micro-level relational dynamics driving operational performance remain underexplored. Objective We examine why and how respectful engagement by a buyer’s agent toward a supplier’s agent enhances supplier operational performance, through the cultivation of relationship commitment and the moderating effect of industry knowledge intensity. Methods We tested a moderated mediation model using time-lagged data from 156 manufacturing dyads, analyzing the influence of respectful engagement on supplier performance (on-time delivery and quality), through commitment to the working relationship, as well as the moderating role industry knowledge intensity. Results A buyer, by engaging respectfully, fosters the development of a supplier's commitment to the working relationship, which in turn improves supplier on-time delivery and quality. Contrary to expectations, however, this indirect effect is consistent across industries regardless of knowledge intensity. Conclusions The paper highlights the transformative potential of positive interpersonal interactions in buyer-supplier working relationships, contributing to behavioral operations management by demonstrating how micro-relational mechanisms underpin operational outcomes across diverse industry contexts.