The influence of firm predispositions on interfirm relationship formation in business markets

The central premise of this paper is that firm level characteristics or behavioral traits, referred to as predispositions, influence how the firm behaves and interacts in its interfirm relationships (IFRs). This augments traditional approaches that focus on the intra-relationship perspective and/or on environmental influences on the relationship. Firm predispositions of strategic intent and relational proclivity are expected to individually, and in combination, increase the extent of connectedness between partners in interfirm relationships. In turn, through connectedness, they affect relationship effectiveness in terms of reciprocity, information exchange, and cooperation. Results indicated that the predispositions increased connectedness, but combinational effects were not present. Connectedness strongly influenced interfirm relationship effectiveness, indicating substantial mediational effects for connectedness. (C) 2001 Elsevier Science B.V. All rights reserved.