Interaction capability development of smaller suppliers in relationships with larger customers

The purpose of this paper is to examine the interaction capabilities developed by smaller suppliers in relationships with larger customers. The contribution of the paper is the development and application of an interaction capability framework to evaluate the types of interaction capabilities developed by smaller suppliers that enable them to cope and better manage in relationships with larger customers. The paper reports on eight in-depth case studies comprising forty-eight interviews with smaller UK textile suppliers in relationships with larger customers. The findings identify the features of the smaller suppliers' interaction capability set comprising four elements: human interaction, technological interaction, managerial systems interaction and cultural interaction capability. The paper concludes by evaluating the lessons from the application of the interaction capability framework and highlighting how smaller suppliers can focus on the development of their interaction capability set to gain positioning advantages in their relationships with larger customers and offer superior customer value. (c) 2006 Elsevier Inc. All rights reserved.