An Exploratory Study of the Management of Supplier Relationships in Rapidly Growing Entrepreneurial Firms‪.‬

ABSTRACT This study examined the nature of supplier relationships between 91 rapidly growing small pharmaceutical companies and the key suppliers of products, services, or capital. The study included a survey and in-depth follow-up interviews with a subset of these companies. The study found these firms narrowing the number of suppliers they use; choosing a supplier first based on its meeting strategic priorities for its operations; and placing significant but secondary importance on the communication and working relationship. Rapidly growing firms stayed with suppliers meeting their strategic criteria, even if the working relationship was poor, unless an alternate source that provided both was patiently available. Firms experiencing stagnate or negative growth was more likely to change suppliers. Suggestions for suppliers are offered.