Abstract:
This study examined the antecedents of buyer seller relationship at micro-retail business level in Tanzania. The general objective of this study was premised on examining in general, the influence of buyer-seller relationship on business performance. This study identified buyer-seller trust, communication, interdependence, cooperation and commitment as determinants of buyer-seller relationship. The specific objectives were therefore, to ascertain the influence of each of those determinants on business performance. The study was carried out in three districts of Dar es Salaam region which were Kinondoni, Ilala and Temeke (Ubungo and Kigamboni districts were not mentioned as districts because the population data used by this study was based on 2012 National census and they were not districts at the time). Snowball sampling method was used to collect data from 162 random customers through an online survey using Google Forms.
For qualitative data, the researcher used the interviewing method, which was done on 10 shop owners as a way to triangulate the quantitative findings. Theoretical arguments for building the conceptual framework were made from the social exchange theory (SET) and the network theory (NT). Quantitative data was analyzed by using Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM), whereas qualitative data was analyzed by using the grounded theory approach. The findings from the analysis indicated that buyer-seller trust, communication, cooperation and commitment contributed significantly to business performance. On the other hand, buyer-seller interdependence exhibited no significant relationship with business performance. For future studies the researcher recommended more research on buyers seller relationship be done in downstream supply chains and should involve a broader scope geographically to improve reliability of generalization of the findings. The focus should be placed in areas with diverse socio-economic characteristics, not just in cities.
This would allow the stakeholders and the research community at large to have a deeper understanding of the buyer-seller relationship dynamics, how they affect businesses and the mediating effects of socioeconomic characteristics.
