The impact of sanctions on buyer-supplier relationship within the Libyan oil industry

Purpose: The purpose of this paper is to explore buyer‐supplier relationships in the Libyan oil industry during and following the sanction era. This paper, utilising four largely validated critical relationship parameters, seeks to flag important buyer‐supplier relationship insights.

Design/methodology/approach: Desk research is undertaken to explore the selected themes of trust, co‐operation, commitment and communication, which are critical to effective dyadic buyer‐supplier relationships. Subsequently, in‐depth interviews were conducted with five key personnel of five Libyan oil companies to examine the impact of sanctions on the selected themes in relation to their buyer‐supplier relationships.

Findings: The results highlight interesting differentials between the two explored areas in relation to the four selected themes: trust, co‐operation, commitment and communication. The results indicate that there is a significant gap in understanding the impact of sanctions on the buyer‐supplier relationship.

Practical implications: This paper is of practical use to academics and practitioners who wish to understand the impact on and implications of sanctions on dyadic buyer‐supplier relationships in a developing country. It is also useful to government officials and the oil industry in gaining insights into the effects of sanctions on an economy with significant reliance on the oil industry.

Originality/value: There are extensive studies on the key themes of dyadic buyer‐supplier relationships. However, there is a gap in understanding the impact of sanctions on buyer‐supplier relationship behaviours. The findings in this paper therefore contribute to bridging this gap.