Relational capabilities in Thai buyer-supplier relationships

Purpose This paper uses the relational capabilities perspective to provide new insights into the mediating role of relational capabilities and their performance implications. Specially, this paper aims to explain how characteristics of a partnership influence relational capabilities that in turn enhance firm performance. Design/methodology/approach Using data from an original survey of 156 partnership projects between buyers and suppliers in the Thai manufacturing sector, the authors use a structural model to test their hypotheses. Findings The empirical analysis shows that the impact of relational and economic attributes of a partnership on firm performance is mediated by knowledge sharing routines and complementary capability. However, the impact varies between operational and strategic performance, as relational capabilities are strongly associated with operational performance but only indirectly associated with strategic performance. Practical implications The need to coordinate and mobilize complementary resources not only increases the interdependence between buyers and suppliers but also contributes to firm performance. Specifically, operations can be enhanced by knowledge sharing routines and complementary capability. At a strategic level, operational effectiveness enables firms to benefit from inter-organizational relationships. Originality/value The authors contribute to industrial marketing knowledge by shedding light on mediation of relational capabilities between inter-organizational attributes and firm performance. The findings demonstrate the value of the relationship between a firm’s supply chain and its relational capabilities which in turn drive project performance.