The purpose of this study is to argue for the importance of customer relationship strategies in smoothing industry-specific business cycles. We use the global fine paper industry as an example of an industry renowned for its drastic, seemingly uncontrollable business cycles. As in so many other global industries producing upstream, commodity products such as steel, copper, or sawn goods, dramatic price fluctuations are a reality for managers in both supplying and buying organizations in the fine pager industry. In this article, a representative case of one business cycle is described and analyzed to illustrate the empirical phenomenon in a real-life setting. We use some specific concepts and frameworks developed in industrial marketing research to further understanding of the underlying logic behind business relationships that enhances cyclicality in the industry. Furthermore. these concepts also give insights into the smoothing of industry-specific business cycles through the application of more explicit, cooperative customer relationship strategies. (C) 2001 Elsevier Science Inc. All rights reserved.