Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 19, 2023 erstellt
Description:
Business connections between suppliers and customers can be enhanced by personal relationships between the executive suites. Personal relationships can lead to greater information sharing and bring about greater trust and long-term stability. We show that relative to the typical supplier-customer relationship, suppliers whose CEOs are personally connected to their major customers have significantly higher sales.We also show that personal connections lead to greater information sharing in innovative technologies and greater vertical integration along the supply chain. While greater concentration in sales and greater reliance on personal relationships can have negative consequences for the supplier firms, we show that overall personal relationships are value enhancing