BREXIT’S EFFECT ON BUYER-SUPPLIER RELATIONSHIPS

• Main Authors: Olsson Löwerot, Agnes, Ustav, Noora
• Format: Others
• Language: English
• Published: Internationella Handelshögskolan, Jönköping University, IHH, Företagsekonomi 2020
• Subjects: Brexit; Buyer-Supplier Relationships; Bensaou portfolio model; Captive buyer; Captive supplier; Market Exchange; Strategic Partnership; Economics and Business; Ekonomi och näringsliv
• Online Access: http://urn.kb.se/resolve?urn=urn:nbn:se:hj:diva-48787

Background: Business relationships between buyers and suppliers are of great importance to maintain a profitable and beneficial business environment. Every organization’s relationship characteristics vary and are influenced by various factors, including environmental conditions and competitors in the market. Also, Brexit is an event that brings uncertainty to these relationships. It is unknown how Brexit will affect the business environment and it is, therefore, necessary to investigate Brexit’s effect on buyer-supplier relationships. The research of Brexit could contribute with valuable insightsfor both companies and policymakers since it will demonstrate the way Brexit has influenced buyer-supplier relationships and companies' responses to the event.  Purpose: The purpose of this paper is to examine the relationships between buyers and suppliers in the EU and the British market under the effect of Brexit. The supplier-buyer relationship will be focused on EU buyers and British suppliers, which will illustrate the adaptations and changes companies in the EU are facing regarding their relationships. Further on, the relevance of this paper will be highlighted through the long-debated case of Brexit. Method: The research is a qualitative study that follows a case study frame of logic. Data has been collected through semi-structured interviews with a sample of three individuals with a purchasing background. The empirical findings were analysed through a logic of thematic analysis using the Bensaou (1999) buyer-supplier relationships portfolio model as an analysis tool. Conclusion:  The analyses have found that there is no change experienced in the current buyer-supplier relationship characteristics due to Brexit. The participants expect to have some influence on their cost in the future which then may affect their product category. Otherwise, the EU buyers have not changed their outlook on their UK suppliers because of Brexit and for the time being continue their business as usual.