Interaction processes in long-term relationships in the metal mining industry: Longitudinal case studies of capital equipment buying

• We investigate the development of long-term relationships in the metal mining industry.
• Suppliers’ brand name and direct channel strategy are key factors in the development of business relationships.
• Functional reliability and degree of customization versus standardization are determinant to relationship development.
• Supplier-based adaptations and the scope of after-sales agreements are core to relationship development and continuity.

This study investigates the development of the relationships between customers and suppliers of capital equipment in the mining industry. The interorganizational relationships were characterized along three sets of variables: context, task characteristics, and interaction processes. Longitudinal case study research was conducted, and four long-term relationships in the Portuguese metal mining industry were investigated. The domesticated nature of the market, compatibility of partners' objectives and strategies, and the choice of a direct channel are significant driving forces for the establishment and development of these relationships. Well-driven interaction processes were found determinant to relationship development and outcomes. Particularly, the extent of supplier-based adaptations and scope of after-sales agreements are core to relationship development and continuity.