Supplier perceived value: Differences between business-to-business and business-to-government relationships

This research investigates suppliers’ perceptions of value and compares business-to-business (B2B) and business-to-government (B2G) relationships. This paper highlights that suppliers perceive greater value benefits from their business customers than their government customers. The volume of sales in both B2B and B2G relationships impacts perceived value. In B2G relationships, information exchange on how to do business had the largest significant influence on perceived value. The implication for suppliers is that they need to consider which relationships offer them better value and then allocate resources towards those relationships, which in this case are their business customers. The implication for government procurement managers is that their methods of dealing with suppliers is putting them at a disadvantage when compared with businesses which may be competing for supply.