In
this study we examine how suppliers and customers perceive fairness in competitive
bidding and contract drafting process, as well as assess their effects on
relationship continuity in the chosen context of the Finnish and Hungarian
metal, machinery, and automotive industry. The study draws on the IMP view on
relationships and relationship marketing as well as grounding the fairness
concept in the equity theory. The study methodology is qualitative and both
customer and supplier views are examined. The key findings of the study indicate
that the relationship parties’ perceptions of fairness differ concerning the
processes that are examined, and suppliers tend to seek for more distributive
and procedural fairness. In competitive bidding, the emphasis on low price
leads lacking distributive fairness. Conducting a dialogue on the value offered
by the supplier contributes to its perceptions of procedural fairness. Competitive
bidding that takes place at high frequency interrupts the relationship
continuity. However, for the customers, the recurring rounds of bidding are
vital to ensure their competitiveness, whereas suppliers see that it obstructs
their future-oriented development and the scope of cooperation. In contracts, product
guarantees and payment terms in contracts prompt perceptions of distributive
fairness. Procedural fairness, which is manifested through the possibilities of
the suppliers to influence the contractual terms are often limited but not
completely missing.  Although the relationships
are seldom a clear continuum, the breaks in cooperation may be temporary and
even the varying level of fairness does not stop companies from participating
in new rounds of bidding.  However, even
when relationships parties have previous history, benefits associated with
long-term relationships are not always realized.