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ABSTRACT This study examines the performance and relationship between buyers in a supply chain and their suppliers, both micro businesses and small and medium-sized enterprises (SMEs). Specifically, this study examines the influence of trust, dependence, information quality, and continuous quality improvement and the varying importance that organizations of different sizes place on each of these constructs. The sample consists of 144 vendors of a large university in the Southwestern region of the United States. The results indicate that performance of micro business suppliers is highly related to trust and dependence, while the performance of SME suppliers is more highly related to information quality and continuous quality improvement. INTRODUCTION Interorganizational relationships continue to be important for small businesses (Cyert & March, 1992). Small businesses (organizations with fewer than 500 employees as defined by the Small Business Administration) often work with other organizations through a variety of collaborative efforts to achieve greater performance (Astley & Van de Ven, 1983; Nooteboom, 2000). Through these coordinated efforts, which can come in the form of networks, joint ventures, strategic alliances, or other forms of interorganizational relationships, the role of small firms becomes increasingly important. According to Gelinas and Bigras (2004), small firms tend to be well suited for logistical integration with key suppliers. Some of the advantages of these firms include centralized decision making, flexibility, limited organizational structure, and a focus on sustainability and growth. Another advantage is the access to additional resources and learning opportunities that can translate into greater future performance (Beekman & Robinson, 2004). Interestingly, Aldrich and Auster (1986) found the development of long-term relationships with other organizations can increase the viability and survival of small businesses. The absence of such relationships may contribute to higher failure rates for smaller firms (Baum, Calabrese, & Silverman, 2000). However, the strengths offered by small businesses in the supply-chain relationship can be potentially offset by their weaknesses. These weaknesses can include a focus on effectiveness rather than efficiency, limited information technologies, and a lack of long range planning. In addition, past research has shown that small businesses are more likely to adopt a defensive approach to integrated logistics (Gelinas & Bigras, 2004). Despite the presence of possible limitations, Gelinas and Bigras (2004) believe that small businesses must be willing to integrate their strategies with key suppliers in order to be successful in today's complex business environment. One challenge, however, is for small businesses to develop effective strategies for their specific needs in the supply chain process rather than rely on models adopted by large multinational firms. The existence of both great opportunities and difficult challenges warrants additional research on the supply chain management strategies and processes used by small businesses. The purpose of this study is to examine organizational performance in the supply chain and its relationship with these relational and operational variables. Specifically, our goal is to examine the relationships among trust, dependence, information quality, and continuous quality improvement with performance in micro businesses (10, LITERATURE REVIEW Small Business While much research has been dedicated to the examination of the firm-supplier relationship, there has been a call for more focus on its impact within the small business context (Gelinas & Bigras, 2004; Morrissey & Pittaway, 2006; Nelson & Ratliff, 2005; Redondo & Fierro, 2007). …
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