1042-2587-90-151 $1 .50 Copyright 1990 by Baylor University An Analysis of the Impact of Supplier Strategies and Relationships on Small Retailer Actions, Perceptions, and Performance Lawrence M. Gales Richard S. Blackburn Relationships between small hardware retailers and their wholesalers were examined. Re- tailers (n = 320) reported that closer relationships with wholesalers, characterized by greater formality and more frequent and intense communications, experienced less uncer- tainty, more autonomy, and made more frequent use of planning and advertising to control output markets. Supplier strategies had no systematic impact on small retailers' financial performance. Businesses encounter both opportunities and constraints in their input environ- ments (Dollinger & Kolchin, 1986; Katz & Kahn, 1978; Pfeffer, 1982; Pfeffer & Salancik, 1978). Firms must purchase raw materials or inventory, acquire technology, obtain financing, hire human resources, and locate other inputs and information to perform their basic mission. Several theoretical perspectives have suggested that strat- egies that guarantee availability of critical resources, information, and control of exter- nal environments are necessary to business success (Dollinger & Kolchin, 1986; Jarillo, 1988, 1989; Pfeffer & Salancik, 1978; Porter, 1980; Williamson, 1981; Smeltzer, Fann, & Nikolaisen, 1988; Stem & El-Ansary, 1982). While significant attention has been focused on the nature and impact of interorganizational relationships in large organiza- tions (Hall et al., 1977; Pfeffer, 1982; Pfeffer & Leong, 1977; Pfeffer & Salancik, 1978; Provan, 1983; Provan, Beyer, & Kruytbosch, 1980), only recently has that focus in- cluded examination of interorganizational relationships among small businesses (Jarillo, 1988, 1989; Provan & Skinner, 1989; Steams, Hoffman, & Heide, 1987). This study adds to that body of knowledge by examining the strategic use and impact of supplier relationships in small firms, by identifying common characteristics of relationships between small retailers and suppliers, and by assessing the impact of variations in those relationships on uncertainty, autonomy, output planning, and financial performance. Foll, 1990 7