Factors causing the termination of the relationship with suppliers

Over the past few years, firms have given more importance to the purchase-related decisions to gain competitive edge. Although great emphasis is given to the selection process of suppliers, commercial partnership may be terminated at a future date. This study, based on data from 66 automotive firms, examines factors affecting buyers´ decision on the termination of the relationship with suppliers in the automotive industry. The results indicate that buyers rate `supplier´s disinterest´ as the most influential construct of problems, and among the 25 individual problems, `supplier firm does not make product deliveries in agreed time´ is rated as the most influential problem to end commercial partnership. In addition, `competitive firm´s attraction level´ is the only determinant of the probability of working again with the former supplier at a future date. Implications of these findings are discussed and further research opportunities described.