Antecedents and consequences of commitment in marketing research services: The client's perspective

Commitment is one of the most frequently studied variables in business-to-business relationships and several researchers propose it is the main antecedent of customer loyalty. However, while marketing relationships researchers agree on the importance of the construct, differences remain in its conceptualization and operationalization. This study examines commitment from the customer's perspective, consisting of three components: calculative, affective and normative. Relationships were tested between the three dimensions of commitment and social bonds, trust and satisfaction in the context of professional business services providers and their clients. The results of the model that was tested in Central and Eastern European companies show that affective commitment is the only one of the three components that significantly influences customer loyalty. Trust and social bonds have no significant relation either to normative or to calculative commitment while a relation of overall satisfaction with normative and calculative commitment is negative. The theoretical and managerial implications for the model to assist in the development of appropriate strategies to achieve affective commitment and loyalty in business relationships are discussed.     

Concerning trust and information

Communication and the associated information exchanges are key drivers of the development of relationships and of the trust embedded within them. This paper considers the development of business relationships in terms of the continuing co-evolution of trust and information exchange and the issues associated with researching these processes. The interconnections of trust and information exchange are examined in a survey of business relationships involving information exchange (n = 355). Analysis of variance shows few, if any, of the aspects of the standard conceptualizations of information exchange are associated with increased levels of trust. It is information exchange norms that have the greatest (positive) association with the level of trust. These norms emerge as part of the long term co-production of the relationship itself. This has important managerial implications. We conclude there are few managerial actions involving managing communication that can “manufacture” trust and improve or develop relationships in the short term. The paper concludes with a discussion of alternative ways of envisaging communication and relationship management and the nature and future of research into the evolution of business relationships.     

Conceptualizing and modeling interpersonal trust in exchange relationships: The effects of incomplete model specification

The importance of interpersonal trust in exchange relationships is well-established, and trust is known to have two important and distinct underlying forms, one cognitive, the other affective. Despite this, trust studies often model only the cognitive task-related form and omit the affective form. This article achieves two main objectives. First it demonstrates that interpersonal trust is best considered a bidimensional construct consisting of both cognitive and affective components, and that omitting either form of trust from empirical studies is a conceptual and specification error. Second, we reveal that both forms explain a large amount of variance in the quality of exchange relationships. Also, studies omitting affective trust ignore the more potent of the two trust dimensions. In addition, models examining only one form of trust strongly inflate the apparent effects of that form, and are diagnostically unsound. Our results have important theoretical and managerial implications regarding the conceptualization and measurement of interpersonal trust, and its role in improving the effectiveness of exchange relationships.     

Exporter-importer relationship quality: The inhibiting role of uncertainty, distance, and conflict

The article examines the impact of uncertainty, distance, and conflict on key elements comprising the quality of the relationship between U.S. industrial exporters and their overseas customers. Information received from 151 manufacturers revealed that these three parameters play a significant negative role in building sound relationship quality, in terms of adaptation, commitment, communication, cooperation, satisfaction, trust, and understanding — which, in turn, may inhibit the firm's progression along the internationalization path. Specifically, an inverse association was found between uncertainty, distance, and conflict, on one hand, and commitment, cooperation, and satisfaction, on the other. In addition, in relationships characterized by high uncertainty, adaptation, communication, trust, and understanding were low. In high distance relationships, communication was insufficient, and in high conflict situations, trust and understanding were low. Several managerial implications are extracted from the study, as well as directions for future research.     

The relationship between buyer and a B2B e-marketplace: Cooperation determinants in an electronic market context

“Stop thinking like a supplier and start thinking as a customer.”

The authors argue that cooperation may be achieved by augmenting the core product with technology-based services. Given the growing importance of real time information exchange and interactivity, a better understanding of the use of technology to the establishment and development of the buyer-supplier cooperative relationships is essential for knowledge advancement. This paper argues that firms should aim to put themselves into their customers' shoes and use the “voice of the customer” to take their major relationship management decisions. To do so, the authors use a sample of nearly 400 SMEs' purchasing managers, to better understand cooperation determinants from the buyers' perspective. The study reveals that in an electronic marketplace, cooperation is positively affected by termination costs, supplier relationship policies and practices, communication and information exchange, and negatively affected by product prices and opportunistic behavior. Moreover, both relationship commitment and trust play a major role in mediating the relationships between these five determinants and cooperation. Surprisingly, resources relationship benefits do not show a significant impact on either commitment or cooperation. Theoretical and managerial implications of these findings are discussed.     

Governing interfirm knowledge transfer in the Chinese market: The interplay of formal and informal mechanisms

Building on knowledge management literature and relational exchange theory, this study addresses how formal (i.e., ex ante contracts and ex post control) and informal mechanisms (i.e., trust) affect interfirm knowledge transfer in the Chinese emerging market. The results of a survey of 343 manufacturer–supplier relationships show that whereas formal control fosters knowledge transfer, contracts are not significantly related to knowledge transfer, and trust greatly facilitates knowledge flows between exchange relationships. Moreover, trust and contracts have a positive joint effect, whereas trust and control have a negative joint effect, on interfirm knowledge transfer. The findings provide important theoretical and managerial implications for interfirm knowledge governance in China.     

Conflict handling, trust and commitment in outsourcing relationship: A Chinese and Indian study

This paper presents a theoretical and empirical model that identifies conflict handling typologies which affect trust and commitment in B2B outsourcing relationship. Three typologies of conflict handling namely integrating, accommodating and compromising were examined for their effects on trust and commitment of Chinese and Indian human resource (HR) outsourcing service providers. The paper also considered the moderating effect of culture in the relationship. Data was collected from Chinese and Indian firms providing HR outsourcing services and analyzed using factor and hierarchical multiple regression analyses. We found both similarities and dissimilarities in the outcomes of the study. Specifically, conflict handling styles are significantly associated with trust and commitment. Trust mediates in the association of conflict handling styles with commitment. The impact of compromising conflict handling on trust and commitment is moderated by culture — significantly higher for the Chinese service providers compared to the Indians. Culture has also a direct impact on commitment but not on trust. Theoretical, cultural and managerial implications of the findings are presented.     

When do formal control and trust matter? A context-based analysis of the effects on marketing channel relationships in China

Formal control and trust are two typical governance mechanisms employed to safeguard business transactions. Yet the effectiveness of each mechanism for firm relationship outcomes remains unclear. Some relevant literature suggests that formal control and trust simultaneously can help secure transactions, whereas other research argues the two control mechanisms can substitute for each other. This study applies social embeddedness theory and differentiates strong tie from weak tie relationships. In so doing, it reveals the role of strong versus weak social ties in leading to parallel conclusions about the relationship between formal control and trust and their effects on relationship outcomes. On the basis of empirical tests in a Chinese marketing channels context, this study finds that the joint effects of formal control and trust on governing transactions depends on the relational tie that the focal partners share. Specifically, formal control and trust complement each other only in weak tie relations. On the basis of this new perspective, the authors offer theoretical and managerial implications for managing interfirm governance mechanisms in transitional economies such as China.     

Does continuity matter? Developing a new long-term orientation structure in a cross-cultural context: A study on supply chain relationships

Long-term orientation (LTO) originates from traditional Chinese culture and is of great significance to the global issue of sustainable development. However, how LTO can manifest its Chinese culture essence at the individual level remains to be solved. This study proposes a new dimension – continuity – and establishes a new scale of three dimensions for LTO to validate its effect on trust and commitment in supply chain relationships. Results show that employees' continuity has a significant influence on supply chain partners' trust and commitment while tradition and planning do not. Theoretical contributions and managerial implications are discussed in the conclusion. This study demonstrates that Chinese Confucianism has made distinct contributions to universal values.     

Determinants of economic and social satisfaction in manufacturer-distributor relationships

The aim of this work is to examine the dimensions of satisfaction in manufacturer-distributor relationships as well as identifying the antecedents of both the economic and the non-economic dimensions of satisfaction. A literature review about satisfaction in marketing channels is followed by quantitative research into how this interchange process is perceived by food product distributors in their relationships with manufacturers. The results provide strong support for the impact of communication, trust and commitment on satisfaction, as well as the interrelationships among the economic and the non-economic dimensions of satisfaction. Theoretical and managerial implications are extracted from these findings.     

The impact of psychological contract breaches within east-west buyer-supplier relationships

The expanding role of Asian firms in global supply chains has meant that their Western counterparts need to be capable of transcending the East-West divide in their relational building efforts if they wish to successfully participate in these networks. This paper draws upon social exchange (SE) theory to integrate the exit, voice, loyalty, neglect (EVLN) typology with the psychological contract (PSYCON) literature, to examine how Australian buyer firms build and nurture relationships with their Chinese suppliers. Data from 327 Australian managers collected using an online self-administered questionnaire reveals the negative effects of PSYCON breaches towards their suppliers on neglect, voice and loyalty in the relationship. In addition, contrasting effects of neglect and voice behaviours on trust and commitment, suggest that these behaviours can help erode and build East-West B2B relationships, respectively. These findings extend research on B2B relationships and offer useful managerial insights for decision makers operating in global supply chains involving relationships between firms from Eastern and Western backgrounds.     

Applying a relationship marketing perspective to B2B trade fairs: The role of socialization episodes

This study addresses the business-to-business (B2B) trade fair from a relationship marketing perspective. The main purpose is to comprehend buyer and seller interactions in the context of the trade fair, evaluating their impact on relationship quality and on the development of the relationship in the long-term. A research model is proposed with the underlying rationale that socialization episodes (i.e., social and information exchange) at B2B trade fairs are important catalysts for relationship quality and development. An empirical study was conducted to test the theoretical model. Data was collected at an international trade fair in Portugal and gathered information about visitor-exhibitor interactions. Findings reveal that the typical atmosphere of the B2B trade fair setting encourages socializing behaviors useful to generate bonds and commitment and, ultimately, enhances the relationship quality. Product importance moderates the relationship between information exchange and relationship quality, and relationship age moderates the relationship between social exchange and relationship quality. The study draws managerial implications for exhibitors, visitors and trade fair organizers and proposes avenues for future research.     

An investigation into commitment in non-Western industrial marketing relationships

This paper reports an investigation into the antecedents of commitment in non-Western industrial marketing relationships. The authors draw the antecedents from extant literature and posit that commitment is related to trust (integrity and reliability), communication quality, conflict, and similarity (social, ethnic, and economic). It is further argued that trust mediates the effects of communication, conflict, and similarity on commitment. As an extension, the authors examine the moderating effects of normative contracts (an implicit understanding of roles and responsibilities) on the construct interrelationships. The hypotheses are tested using data collected from approximately 150 industrial marketing relationships sampled from overseas Chinese firms. The results generally support the authors' framework; however, the mediating hypotheses are not supported. There is evidence of systematic differences in the effects of the studied antecedents on commitment and trust. Furthermore, a multigroup analysis provides evidence of significant moderating effects due to contracting mode. The study provides new insights into the theory and practice of industrial marketing.     

Exercised power as a driver of trust and commitment in cross-border industrial buyer-seller relationships

The article reports the findings of a study conducted among 151 U.S. export manufacturers of industrial goods regarding their working relationships with foreign customers. Specifically, the emphasis is on the sources of power exercised and how these affect trust and commitment in the relationship through the mediating role of conflict and satisfaction. Using structural equation modelling, it was confirmed that the exercise of power derived from coercive sources increases conflict and reduces satisfaction, while the exercise of non-coercive power sources leads to lower conflict (but not significantly increasing satisfaction). Conflict was found to be negatively associated with trust, as opposed to satisfaction which enhances trust. Trust was subsequently revealed to foster commitment in the relationship. Conclusions and implications are derived from the study findings and directions for further research are provided.     

Channel relationship and business uncertainty: Evidence from the Hong Kong market

This study examines the dynamics of channel relationships between an end user and multiple suppliers in Hong Kong, a major international logistics hub in Asia. Drawing on the literature on channel relationships, we examine the links between different channel relationship variables and the contingent effect of business uncertainty on the links between these variables and supplier commitment. The results of the study indicate that expected relationship continuity mediates the effects of trust and relationship quality on commitment. Furthermore, the positive effect of trust on commitment is found to be stronger when business uncertainty is high than when business uncertainty is low. As supply chain management is becoming essential for firms to succeed in today's business, industrial marketing managers need to be aware of the dynamics in channel relationships and to better manage their supply chains. The implications of our findings for research and for the practice of channel relationship management are provided.     

Do supplier perceptions of buyer fairness lead to supplier sales growth?

Despite the growing number of studies focusing on fairness perceptions in buyer–supplier relationships, the pertinent literature mostly focuses on understanding the buyers' perceptions of fairness. In this study, we argue that sellers' perceptions of the fairness of the buyer are equally important but often overlooked. Moreover, existing research fails to provide empirical evidence for examining the long-term effects of fairness on sales growth. We address these gaps by reporting the results of a longitudinal study based on both primary data collected from automotive suppliers in 2009, and objective sales data for these suppliers from an automotive manufacturer over a three-year period after 2009. We employ a latent growth curve model, which reveals that only interactional and distributive fairness have a positive and significant effect on both trust and commitment. Our analysis further reveals that the positive effect of trust and commitment on sales growth is smaller as the supplier's level of dependency on the car manufacturer increases. When the buyer's perception of dependence is considered, these effects are reversed. Several managerial implications of these findings are provided.     

A relationship strategy perspective on relationship portfolios: Linking customer profitability,commitment, and growth potential to relationship strategy

The paper develops a three-dimensional portfolio model for business relationships which distinguishes among six different categories. Based on assessments of customer profitability, customer commitment, and growth potential, the positioning of a given customer relationship in the portfolio allows managers to determine appropriate customer relationship strategies and appropriate performance indicators. Results from applying the portfolio model are reported and managerial implications and future research are discussed.     

Industrial brand value and relationship performance in business markets — A general structural equation model

This paper develops a general model of industrial brand value and relationship performance in business-to-business markets from the perspectives of consumer and industrial marketing literature. The structural equation model integrates the analysis of industrial brand value and relationship performance. The model describes the extent to which supplier-buyer transaction performance is influenced by the eight important factors: supplier competence, purchasing value, customer satisfaction, switching cost, brand trust and loyalty, relationship quality, commitment, and transactional performance.The general model is applied to organizational buyer groups of comprehensive industrial markets (Electronics, Chemicals, Equipment, etc). The analysis finds that supplier competence directly affects purchasing value and customer satisfaction, and via purchasing value and customer satisfaction, it indirectly affects commitment, switching cost, brand trust and loyalty. The managerial implications of the study results are also discussed.     

Managers' compassionate goals,innovation, and firm performance: an examination of mediating processes,and boundary conditions in small- and medium-sized enterprises

This study aims to examine the relationships of managers' compassionate goals with innovation and performance in small- and medium-sized enterprises (SMEs). By integrating social exchange theory with social information processing theory, we hypothesize a serial mediation model in which organizational cooperation and firm innovation sequentially mediate a positive relationship between managers' compassionate goals and firm performance. However, we predict that this positive indirect effect would occur only when managers have low self-image goals and there is a high innovation-supportive work environment. Based on survey data from a sample of 116 SMEs in France, our results provide support for our predictions. This study contributes to the literature by disclosing the mechanisms and boundary conditions of the relationship of managers' compassionate goals with SMEs' innovation and performance. Theoretical and managerial implications of this study are discussed.