The Impact of Outcome-Based Control for Retail Buyers on Organizational Performance

Abstract

This study addresses issues arising in the management of retail buyers. We consider the impact on supplier relationship management and organizational performance when retailers manage buyers based on an outcome-based control. To confirm the trends indicated in our proposed research model, this study conducts a survey of merchandising division heads at Japanese retail companies. The results from structural equation modeling analysis reveal that outcome-based control, through the central, mediating role of relationship continuity, encourages cooperation with suppliers, and this cooperation yields greater organizational performance for retailers. The findings raise questions as to the significance of forming a clan-like system when managing results-oriented buyers on an outcome basis.

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