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Output Sector Munificence Effects on the Internal Political Economy of Marketing Channels
Abstract
Like any system, a marketing channel will thrive only to the extent it can secure critical resources from the environment. Using a resource dependence perspective, the authors hypothesize that a weaker member's access to relatively munificent output markets can mitigate a power advantage held by the channel partner that otherwise is used to bureaucratize the channel and endanger the quality of the channel relationship. The authors use a structural equation model to analyze data from dealer informants in the auto industry. The results suggest munificence affects the internal workings of the channel.
... While there is a growing body of literature focused on governance mechanisms to address agency risks, our understanding of strategies to curb opportunism is still simplistic Cochet et al., 2008;Dahlstrom, 2008, 2010;Ludvigsson-Wallette and Lawrence, 2020;Wang and Yang, 2013). Structured governance mechanisms, such as centralized decision-making and formalized rules and regulations and unstructured mechanisms, such as mutuality and solidarity, can be instrumental in addressing opportunism (Cochet et al., 2008;Dwyer and Oh, 1987;Dwyer and Welsh, 1985;Kaufmann and Dant, 1992). But, some of these governance strategies, while helpful in addressing opportunism, could be detrimental to the autonomy of franchisees, which may adversely affect their relationship with the franchisor. ...
... Specifically, we investigate the interaction effects of structured governance mechanisms (i.e. formalization and participation) (Dwyer and Oh, 1987;Dwyer and Welsh, 1985;Paswan et al., 2017) and unstructured governance mechanisms (i.e. solidarity and mutuality) (Kaufmann and Dant, 1992;Sheng et al., 2018) with relationship satisfaction on opportunism in a franchise relationship. ...
... Bureaucratic structures are the formal internal economic arrangements of the firm that deal with vertical interfirm transaction arrangements (Paswan et al., 1998;Windsperger et al., 2018). Centralization and formalization comprise some of the most vital tenets of the bureaucratic structure (Dwyer and Welsh, 1985;Dwyer and Oh, 1987;Nandi and Kumar, 2016). Centralization is the extent to which decision-making is concentrated in the hands of a few individuals. ...
Purpose
Although multiple forms of governance mechanisms have been studied to address the opportunistic behavior in franchising, research has not shed light on franchise systems operating in emerging markets despite exponential growth in these markets. To address this gap, this study aims to test the direct effects of different governance mechanisms on franchisee’s opportunism and moderating effects of franchisee’s relationship satisfaction on the relationship between different governance mechanisms and franchisee’s opportunism.
Design/methodology/approach
Survey data from 151 franchise owners were used to test the conceptual model and research hypotheses. The confirmatory factor model and structural equation model were tested by using AMOS.
Findings
Findings suggest that formalization and solidarity in franchising relationships negatively affect franchise opportunism. By contrast, franchisees, who are otherwise satisfied with their franchisor, find centralization and formalization oppressive and, therefore, engage in opportunistic activities.
Research limitations/implications
The study makes important contributions related to franchising in emerging markets. It addresses opportunistic behavior by franchisees in emerging markets and the role played by different governance mechanisms in curbing such behavior. The study has some limitations related to its cross-sectional design and its focus on a single emerging country, among others.
Originality/value
This study is among the first to examine the role of governance mechanisms to address franchisee’s opportunism in an emerging market context. The study’s findings have important theoretical and practical implications for governance design in business-to-business relationships in emerging markets.
... Formalisation involves clear-cut rules and procedures that regulate the decision-making process (Dwyer & Oh, 1987). As formalisation is higher, the decisions and working relationships are more influenced by formal standardised policies and rules for longer periods. ...
... Commitment is an indirect or direct promise of continuing a relationship between partners that enables them to tolerate each other's insufficiencies (within reason) and coordinate rather than taking advantage of the circumstances (Dwyer & Oh, 1987;Min et al., 2005). Organisational commitment within SCs is akin to the weaker party being willing to conduct a long-term relationship, and quality increases with the level of commitment (Nyaga & Whipple, 2011). ...
... The relationship between shippers and our firm is stable Dwyer and Oh (1987), Ganesan (1994) ...
This study aims to evaluate the extent of collaboration between shippers and shipping companies in South Korea. Bespoke cooperative and collaborative spirit indices (CCSIs) reflect the conceptual differentiation between cooperation and collaboration, as well as a more comprehensive conceptualisation. Shipping companies registered in South Korea returned 167 usable responses. CCSIs were developed through exploratory factor analysis weighting methods, and differences among CCSIs by vessel type and contract period were examined using multivariate analysis of variance. CCSIs indicate that powerful supply chain members resist two-way communication, mutuality, distributive fairness, and long-term relationships. This is one of the first studies to operationalise the key concepts of cooperation and collaboration in terms of the maritime industry, providing the basis for future research in other supply chains despite a single informant attribute. Based on the CCSI scores, managerial and political initiatives are discussed to reduce barriers to interaction and ameliorate the CCSI level between supply chain members. The research provides insights into the extent of cooperation and collaboration by initially establishing CCSIs in the maritime industry, which will support strategic approaches to supply chain members.
... In the extant literature, relationship quality has been identified as a multi-dimensional construct (Alejandro et al., 2011;Hani et al., 2022). Dwyer and Oh (1987) have considered satisfaction, trust, and opportunism as dimensions of relationship quality, while Crosby et al. (1990) have included only satisfaction and trust as components of relationship quality. De Wulf et al. (2001) later conceptualized relationship quality as a global construct encompassing trust, commitment, and satisfaction. ...
Researchers in business-to-business (B2B) sectors often assume that findings regarding country-of-origin (COO) effects on end consumers can be directly applied to the industrial marketing context. This tendency to generalize can result in an inaccurate understanding of how buyers perceive COO information in B2B scenarios. This study investigates the effect of supplier-country image on international customers’ perceptions of both perceived product quality and relationship quality in a B2B market environment. We further examine the consequences of perceived product quality and relationship quality on supplier awareness and customer loyalty. Data collected from 182 international B2B buyers in the Portuguese footwear, molds, and wood products and furniture industries were analyzed using structural equation modeling (SEM). The results indicate that supplier-country image influences the relationship quality dimensions (trust, commitment, and satisfaction) and perceived product quality. Moreover, trust and commitment enhance customer loyalty, while trust and satisfaction leverage supplier awareness. In contrast, perceived product quality only influences customer loyalty, albeit to a weaker extent. Thus, relationship quality plays a more significant role than perceived product quality in influencing supplier awareness and customer loyalty in B2B environments. These results challenge the notion that the impact of COO on end consumers can be equally applied in B2B contexts, and they expand our understanding of how supplier-country image affects relationship quality in the industrial setting. Furthermore, they draw managers’ attention to the importance of mitigating a potentially negative COO image through measures aimed at improving relationships.
... Despite the fact that several trust constituents have been proposed in literature, such as honesty and benevolence [11,12,19,23,[29][30][31], experimental manipulation [29,32] competence and predictability [22], ability, benevolence, integrity and predictability [5,17], competence and integrity [18], the four basic components of trust, which are listed most often, are the following: ...
Studies within different fields indicate that the most successful social and business relationships are trustworthy, where partners willingly strengthen the ties with the other part. Trust has been also identified as the catalyst in network marketing companies of direct selling, which is predominantly based in human relationships. The present study aims to investigate trust development in terms of trust antecedents, components and consequences within the Amway Network Company in Greece. Field research was conducted by utilizing a structured questionnaire, which was developed by adopting relative constructs reported in literature. The research target sample consisted of Amway’s Independent Business Owners (IBOs). Two hundred and twenty five questionnaires were distributed during company’s big and small conferences in Greece. Moreover, an online version of the questionnaire was created and communicated to IBOs from various regions of Greece via the web, while the same link was also emailed to a small number of IBOs. The resulting sample comprised 151 correctly answered questionnaires. Principal Component Analysis was initially performed to identify latent factors within the questionnaire items measuring the trust antecedents, components and consequences, which led to alterations of the initial model. The emerged trust antecedents were named cultural similarity, privacy concerns and conflict. The trust components were named ability, integrity and goodwill, while the trust consequences were named commitment and perceived continuity. The results of the regression analyses conducted showed that cultural similarity is the most significant antecedent of trust. Moreover, goodwill was found to be the trust component that leads to higher levels of both commitment and perceived continuity. Keywords: trust, antecedents, consequences, network company, Greece
... To test the moderation effect of the innovative and bureaucratic cultures, we used both cultures as direct antecedents of the restaurant business performance variables and the interaction term of both innovative culture x RL and bureaucratic culture x RL, using centered scores to calculate these new variables. Given that RL is a second-order construct, we followed the recommendation of Ping (2015), transforming it into a first-order construct using sums of indicators for each RL first-order dimension (e.g., Dwyer & Oh, 1987). ...
In recent years, responsible leadership (RL) practices have become more common across all types of businesses and in those associated with tourism in particular, characterized by micro and small enterprises (MSEs) and where dependence on the leader is even greater. But this style of leadership needs further theoretical development. One way to advance in this theoretical development is to demonstrate empirically the outcomes of RL. This leadership style goes beyond the leader-employee relationship, impacting all stakeholders and, therefore, interacting with the organizational identity. Therefore, the aim of the present study is to analyze the effect of RL practices on business performance in the restaurant sector, where many companies are micro or small, taking into account the moderating effect of organizational culture (OC). The study is conducted on a sample of 141 MSE restaurants in tourist areas of Spain, with the owner or general manager being the key informant. The results show that RL practices contribute to the improvement of both financial and innovation performance among such businesses. This effect is even greater when the restaurant develops an innovative OC. These results show that the impact of RL on business performance is higher in innovative organizations, linking the theoretical developments around RL and OC.
... Expectations of Mutual trust-Trust has been defined as confidence between two individuals in a relationship (Garbarino & Johnson, 1999;Bateson, 1988) that neither of them will exploit each other's vulnerability (Dwyer & Oh, 1987) and a belief that they are honest and will cause no harm to each other (Kumar, Scheer & Steenkamp, 1995;Ganesan,1994). Participants explained that they used silent treatment when they experienced breach of this trust. ...
The present research aims to explore source’s reasons of using silent
treatment in context of a relational dyad. The sample consisted of 10
female unmarried participants of 20-27 years of age. In-depth
interviews were conducted and thematic analysis was used to identify
the recurrent themes. It was found that majority of participants used
silent treatment with close others whom they consistently define as
someone who accepts them unconditionally. While the reasons for
silent behavior varied across different relationships, feelings of hurt,
anger and frustration were found to be the most widespread factors
that predisposed the participants to using silent treatment. This study
also provides novel insights regarding power dynamics between the
interact ants of silent treatment, an area which remains largely
unreported in previous researches.
... Mục tiêu của chất lượng mối quan hệ chính là để tăng cường sức mạnh các mối quan hệ nhằm tạo dựng mối quan hệ lâu dài với khách hàng. Trong lĩnh vực marketing, Dwyer và Oh (1987) 18 là những người tiên phong trong việc nghiên cứu về chất lượng mối quan hệ, sau đó được triển khai và tìm hiểu chuyên sâu bởi Crosby và cộng sự (1990) 13 . Theo Crosby và cộng sự (1990) 13 , chất lượng mối quan hệ là cảm nhận của khách hàng về lòng tin và sự hài lòng của khách hàng. ...
Online repurchase intention has recently been noticed by researchers and practitioners alike. Researchers and practitioners alike have expressed a particular interest in customer experience because providing customers with unique and positive experiences is the current goal of businesses. They also agree on the importance of customer experience in creating customer satisfaction, trust and online repurchase intention. Therefore, this study investigates online repurchase intention in assessing the direct and indirect impact of customer experience to the online repurchase intention in the retail market in Ho Chi Minh city when considering the mediating role of trust and customer satisfaction. Structural equation modeling (PLS-SEM) was used with a survey sample of 572 observations to test the research hypotheses. The research results have confirmed the direct and positive impact of customer experience, trust and customer satisfaction on online repurchase intention. In addition, customer experience has an indirect and positive impact on online repurchase intention through trust and customer satisfaction. In practice, online retailer should enhance optimal experience customer, trust and customer satisfaction to increase online repurchase intention.
... When the level of social relations is lower the level of trust between exchange partners will be lower (Ford, 1980). There is consensus in the literature (Anderson and Narus, 1990;Dwyer and Oh, 1987;Doney and Cannon, 1997;Ganesan, 1994) that trust includes also benevolence. Doney and Cannon (1997) have defines trust as perceived dependability and robustness of the trust objective. ...
This paper investigated the factors that affect the quality of relationship between the private environmental management service providers and the public institutions based in Ho Chi Minh City. This paper has applied both qualitative and quantitative research methods engaging, amongst others, the exploratory factor analysis (EFA), the confirmatory factor analysis (CFA) and the structural modelling (SEM). Based on the obtained research results, this paper has outlined some policy recommendations and governance implications for the government agencies and bodies as well as to put forward some managerial solutions for private environmental management service companies and public institutions in Ho Chi Minh City, the most dynamic city in Vietnam. Research results, related recommendations, implications and managerial solutions could also be generalised in a national scale.
... For Frost et al. (1978), trust is the expectation that other individuals' or groups' behavior (verbal and non-verbal) will be altruistic and beneficial to the trusting person. Dwyer and Oh (1987) see trust as believing that the exchange partner will not fail credibility. Trust is the trustee's willingness to depend on another person's actions, based on the expectation that the trustee will behave appropriately from the trustee's point of view regardless of the trustee's ability to monitor or control. ...
Informed decision making by artificial intelligence (AI) is believed to lead to faster and better decision outcomes. It is increasingly used in our society, from making decisions in everyday life, such as recommending movies and books, to making more critical decisions such as medical diagnosis, anticipating credit risk, and selecting talent in recruitment. In 2020, the EU proposed a European approach to excellence and trust in its White Paper on Artificial Intelligence (European Commission, 2020). They stated that artificial intelligence will change lives, improving not only health care, but also increasing agricultural productivity and contributing to climate change mitigation. Therefore, their approach is to improve the quality of life while respecting rights. Among such AI-based decision-making tasks, trust and the perception of integrity have been found to be key factors guiding human behavior in human-machine interactions (Zhou et al., 2017, 2021b). As such, trustworthy AI has experienced a significant increase in interest from the research community in various fields of application, especially high-stakes fields, which typically require testing and validation by domain experts not only for security reasons but also for legal reasons (Holzinger et al., 2018; Stöger et al., 2021).
... Indeed, some researchers have argued that "the degree of trust the consumers feel toward the brand, rather than assessment of its features and benefits, will determine which brand they will select" (Veloutsou & Moutinho, 2009, p. 317). We define brand trust as a consumer's confidence in the honesty and integrity of a brand and its communication (Chaudhuri & Holbrook, 2001;Crosby, Evans, & Cowles, 1990;Delgado-Ballester & Munuera-Aleman, 2001;Dwyer & Oh, 1987;Hess & Story, 2005;Morgan & Hunt, 1994). In brand relationships built on trust, consumers experience emotional feelings toward the brand, including love, happiness and attachment (Batra, Ahuvia, & Bagozzi, 2012;Fournier, 1998). ...
A number of well-known brands are not only loved by many consumers, but also hated by a sizeable portion of the population and are thus termed polarizing brands. Because digital media offers consumers nearly unlimited opportunities to voice their hate, managers can no longer ignore vocal haters. However, the current marketing literature offers few strategies for addressing the challenge of brand hate. This paper introduces the concept of hate-acknowledging advertising (HAA), an ad technique in which polarizing brands openly admit that some segment of the population hates them. Over the course of three studies, the data indicates that, compared with supportive advertising, HAA results in higher perceptions of ad credibility and ultimately higher levels of brand trust. Moreover, the improvements in ad credibility and brand trust drive increased consumer intentions to engage in positive word of mouth on behalf of the polarizing brand.
... More than 3 decades ago, scholars such as Anderson and Weitz (1986), Dwyer and Oh (1987) and Heide and John (1992) validated the need to explore the negative influence of opportunism in the development of B2B relationships. Heiman and Nickerson (2002) later confirmed the adverse influence of opportunism on a B2B partnership and its ultimate potential in creating conflict in the relationshipbuilding process. ...
Purpose: The purpose of the study is to test the relationships between the antecedents of noneconomic satisfaction and its influence on economic satisfaction from both a seller’s and a purchaser’s perspective.
Design/methodology/approach: Purchase and sales managers working for Taiwanese companies were included in the sample. Snowball sampling was applied and a total of 218 purchase managers and 208 sales managers participated in the study. Structural equation modelling was applied to the study.
Findings: Opportunism was determined as an antecedent to conflict, while opportunism did not have a negative relationship with noneconomic satisfaction. Conflict was established as having a negative relationship with noneconomic satisfaction, which related positively to economic satisfaction in B2B relationships.
Practical implications: The findings give purchase and sales managers insights that enable them to understand how opportunism relates to conflict, how these two antecedents relate to noneconomic satisfaction and how noneconomic satisfaction relates to economic satisfaction in purchase and sales business relationships. The tested model validates the hypothesised relationships between opportunism and conflict, conflict and noneconomic satisfaction, and noneconomic satisfaction and economic satisfaction from both a purchaser’s and a seller’s perspective. However, the negative relationship between opportunism and noneconomic satisfaction in purchaser–seller relationships could not be confirmed.
Originality/value: No existing study has focused on relationship marketing in business-to-business relationships from both a purchaser’s and a seller’s perspective to establish whether noneconomic satisfaction functions as a connector between economic satisfaction and opportunism and conflict.
... Customer satisfaction is a positive emotional state formed by customers' evaluation of products and enterprises, and it is the first variable of trust. Customer satisfaction is the initial relationship between the brand and the customer, and trust is the stage after customer satisfaction (Dwyer and Oh, 1987). In other words, satisfaction with the results will give the customer a sense of "being treated fairly, " which will convince the customer that the company cares about them and build trust in them (Ganesan, 1994). ...
Because of the COVID-19, the tourism industry has been greatly affected, especially the occupancy rate of hotel companies. This study analyzes the effects of customer engagement and service evaluation on brand trust and customer behavioral intention based on 437 valid questionnaires from Chinese economy hotel companies using SPSS and AMOS. The components of customer engagement are subdivided into five dimensions: identification, enthusiasm, attention, absorption and interaction, and the impact of these five dimensions on brand trust in the COVID- 19 is investigated. Finally, it verifies the influence of trust on customers’ word-of-mouth (WOM) intention and customers’ reuse intention. The results of this study not only enrich the research on customer engagement and service evaluation in marketing circles but also give some advice to hotel companies in the COVID-19 customer engagement and service evaluation that can enhance the trust of enterprises and promote the behavior intention of customers, which has certain practical reference value.
... To enhance the current research findings, relationship quality would be analyzed as a mediator among dependent and independent variables. Relationship quality is an important concept that was introduced by Gammoh et al. [7] and consolidated by Dwyer and Oh [28] and noted further by numerous investigators over 29 years [29,30]. The idea of relationship quality came to light from an extended issue of relationship marketing. ...
The assessment of brand equity and its sources is a trend among researchers and garment brand companies nowadays. The purpose of the current study is to explore the impact of two independent variables, including “words of mouth” (WOM) and “brand personality”, on the dependent variable “brand equity”, along with the assessment of mediating effects of “relationship quality”. Previous literature on the subject suggests that multiple sources including “words of mouth” and “brand personality” influence “brand equity”, but no attempts have been made for the assessment of “relationship quality” as a mediator among sources of brand equity in the context of garment brands. The present study aims at filling that gap through the presentation of a statistical model. Respondents in the sample included the regular customers of the garment brands. Partial least squares structural equation modelling (PLS-SEM) was used to fddd the collected data. The results indicated that the “WOM” and “brand personality” had a significantly positive influence on “brand equity”. “Relationship quality” was found to have a strong mediating effect. The theory of brand equity and the social exchange theory was used to develop a representative model. Results of the study strengthen the premises of the theory of brand equity and the social exchange theory. The researchers recommended the exploration of the influence of other possible mediating variables in future researches. Recommendations were also made for the administrators of the garment brand companies for the consideration of “relationship quality” along with the sources of “brand equity”, including “words of mouth” and “brand personality” for improved decision making and competitive advantage
... Previous research indicates a positive relationship between process control and selling performance. For example, Dwyer and Oh (1987) found a positive influence of the degree of formalization of rules and procedures on the satisfaction with the relationship with the headquarters (see also Dwyer 1980). Also, Challagalla and Shervani (1996) find that salespeople's satisfaction improves with the transfer of activity information. ...
The use of controls is a core management activity for multinational corporations. To extend the understanding of these tools, this research builds on the Jaworski’s (1988) framework on marketing and sales controls. By focusing on an international marketing and sales setting, we examine the influence of the local environmental context on the control types applied by the headquarters of medium-sized industrial goods corporations. We collected data from 184 subsidiaries from different industries and different European countries. All headquarters were located in Switzerland. An empirical test of rival, theory-based conceptual models reveals the superior version: It contains mixed effects of the local environment on the level of control and a direct positive effect of the kinds of examined controls on psychological outcomes, but no moderating effect of environmental context.
... Concept of relationship quality has penetrated from theoretical and empirical findings at the area of relationship marketing (Crosby et al., 1990, Dwyer andOh, 1987). According to American Marketing Association, relationship marketing is the one with the conscious aim to develop and manage long-term and trusting relationships with customers, distributors, suppliers, or other parties in the marketing environment. ...
Quality relationships with customers are the very essence of relationship marketing. It is necessary to create and deliver customer value to develop relationship marketing successfully, and to gain sustainable customer loyalty. Having in mind contemporary customers who look for higher customer value the question arises as to whether delivery of higher value is a key to creation of long-term profitable relationships with customers on the retail market. In this paper influence of perceived customer value on perceived relationship quality in retail will be researched. Perceived value has been determined as two-dimensional, as emotional and economic value. Relationship quality in retail will be measured by satisfaction and trust dimensions. The obtained research results will enable better understanding of relationship between the two concepts in retail. It will also provide presumptions for successful management of relationship quality according to perceived customer value dimensions.
... Why trust is so fundamentally important? On a generic domain, in a mutual exchanging process such as restaurants providing the services to customers, trust is an indicatorperhaps a mental one -which points out the customers' willingness to be dependent on the service provider in believing that it will not intentionally disappoint them (Deutche, 1958).In other words, customers trust a brand and a service provider's effort in the commitment and capability to fulfill its obligations and will do the best to pull its weight towards positive long-lasting relationships (Dwyer and Oh, 1987). When the relational bond is established based on trust, between the brand or service provider and the customer, Hiscock (2001) argues that the ultimate goal of marketing is established. ...
Brand trust development phenomenon in a structured component-wise and layer manner is vital, which helps the restaurant service provider to systematically create and implement the needed strategies to establish brand trust. From a systems theory perspective, brand trust is a part of the overall brand management system, which would need antecedent structure and a clear consequence to indicate an effective brand trust. Thus, the research objective is to derive and validate an integrated model, which explains how brand trust – both cognitive and affective satisfaction aspect – is developed by incorporating the socio-psychological domains of influence in norm and attitude, and the reliability- ensured service operations performances, as stimuli, to impact significantly on the knowledge-based value perceptions, so that revisit intention and experiential sharing as a consequence of brand trust can be developed. That is, cognitive trust emerges as a result of customers forming value perceptions and knowledge of what the services can deliver. For testing the model, an upscale restaurant population in Chiang Rai is targeted, and the data collected were subjected to multivariate statistical analysis i.e. structural equation modeling (SEM) and hierarchical multiple regression method.
... Previous studies have extensively examined the interfirm relationships for various marketing activities, such as product distribution and sales, product promotion, or product development with customer firms (Swaminathan and Moorman 2009). Specifically, researchers have examined various factors that affect the effectiveness of interfirm relationships, such as power distribution between partners, partner match or conflict, control mechanism, idiosyncratic investment for partners, and coordination effort between partners (e.g., Anderson and Barton 1992;Bucklin and Sengupta 1993;Dwyer and Oh 1987;Jap 1999). Studies have also shown that cooperative relationships with customers contribute to successful new product development in terms of development speed and innovativeness (Bonner and Walker 2004;Fang 2008). ...
... In examining the IPE economic processes, researchers have found that formalization (i.e., the nature of decision-making mechanisms used by partners) influences the functioning of buyer-supplier exchanges (Dwyer & Oh, 1987;John, 1984). Consistent with this paradigm, we include communication aspects of formalization in our framework to represent the IPE's economic processes. ...
Our study addresses the limited attention paid to the role of indigenous institutional environments in framing the legitimate forms of governance used to shape buyer-supplier exchanges. Drawing on institutional theory and marketing channel literature, the study suggests that the emphasis in buyer-supplier exchanges on communication modalities and norms has much to do with the effectiveness of legal systems in a buyer's country. Three contexts for legitimacy are conceptualized from an examination of exchanges in developed economies with strong formal institutions and transitioning economies with underdeveloped institutions. Using surveys of US buyers to represent strong formal institutional environments, we conclude that buyers heavily influenced by regulative enforcement place a relatively greater emphasis on formal information sharing in their partnership efforts to build trust and enhance supplier performance. From surveys of buyers in India and China, we conclude that buyers place a relatively greater emphasis on informal information sharing when their legitimacy derives from the endogenously enforced moral codes of their private networks. Finally, surveys administered in Brazil and Russia revealed that buyers in environments pressured by the familial loyalty practices of their private networks place a relatively greater emphasis on the norm of solidarity to build trust in their suppliers.
... Hence, despite being conceptualized as an important driver of long-term relationships (Dwyer & Oh, 1987;Crosby, Evans, & Cowles, 1990;Moorman, Zaltman, & Deshpande, 1992), it is possible that trust may be destructed or manipulated, which could lead to dysfunctional operations and eventual dissolution. However, the dark side of B2B relationships in professional financial services remains an important yet under-explored topic (Hoffmann, Pennings, & Wies, 2011;Jia, Wang, & Xiong 2017;Madhavaram & Hunt, 2017). ...
This paper extends the growing research on the dark side of B2B relationships by exploring the differences in third-party certification effects based on social capital with professional financial services firms, using a proprietary dataset with confidential voting records of the nominations for Investor Relation Awards in Hong Kong. Results confirm the dark side of these relationships by showing that the nominated firms with more favorable voting from international (vs. local) analysts experience stronger certification effect with higher valuations upon announcement. Moreover, nominated (but not awarded) firms with lower levels of information transparency demonstrate a larger certification effect but they also show significant improvement in their information transparency after the event, which represents an unexpected bright outcome from this dark side of B2B relationships. Overall, these findings extend the social capital argument that international financial services firms bring higher positive return through the support of their own professional and social network.
... Marketing scholars and practitioners (Gaurav 2016: Keung et al. 2015Kaski et al. 2015;O'Reilly & Eckert, 2014; Segarra-Moliner, Moliner-Tena, and Sánchez-Garcia 2013; Fullerton 2011; Theron and Terblanche 2010) have become stronger in their argument that the future sustainability of supply channel relationships will be determined by knowledge on seller expectations and preferences in B2B relationship building. Wathne and Heide (2000) state in their seminal work on transaction-cost analysis (TCA) that the theory has become a foundation for various studies (e.g., Anderson and Weitz 1986;Dwyer and Oh 1987;Heide and John 1992;John 1984) over decades relating to relationship building and management issues in B2B markets. In these studies, much attention was focused on the risk that opportunism has on the building of long-term relationships between partners in a B2B environment. ...
Purpose
The study explores a seller’s perspective of the influence of opportunism and conflict, which are negatively loaded constructs, on non-economic satisfaction as a positively loaded construct. It further established the influence of non-economic satisfaction on economic satisfaction as a positively loaded construct from a sales perspective in a supplier–business relationship.
Design/methodology/approach
The study followed a quantitative and exploratory approach. Respondents (sales or marketing managers/directors or key account managers) were asked to identify one main business customer with whom they had interacted in the last year. In addition, respondents were further required to keep the selected customer in mind when answering the questionnaire. Consequently, all 213 but one (one non-response bias) surveys were used in the data analysis. A 5-point Likert-type scale was used to determine the degree to which respondents agreed or disagreed with the items provided in the questionnaire relating to opportunism, conflict, non-economic satisfaction and economic satisfaction in seller–business relationships. The SPSS/Amos 24.0 software was used to conduct the multivariate analysis in two phases. Phase one comprised a confirmatory factor analysis, while phase 2 comprised structural equation modeling. Confirmatory factor analysis was used to assess the measurement properties of each construct, while structural equation modeling was applied to evaluate the hypothesized relationships in the precursor and outcome research model.
Findings
The findings show that in seller–business relationships, sellers are of the opinion that buyer opportunism and the existence of conflict do affect a seller’s non-economic satisfaction directly, which in turn affects the economic satisfaction of seller–business relationships. Sellers further indicated a positive seller–business relationship can stimulate a long-term partnership if both opportunism and conflict are negatively related to non-economic satisfaction and non-economic satisfaction relates positively to economic satisfaction.
Research implications
The study makes a practical contribution through an improved understanding of a seller’s perspective on how opportunism relates to conflict, how these two precursors influence non-economic satisfaction and how the latter relates to economic satisfaction in a seller–business relationship environment. An improved understanding of a sellers perspective of the variables under study, can potentially stimulate a long-term partnership if both a seller and a buyer are in agreement that opportunism and conflict are negatively related to non-economic satisfaction and non-economic satisfaction relates positively to economic satisfaction.
In terms of the theoretical contribution this study explores a seller’s perspective in business relationships to validate whether the findings reported in previous studies based on buyer business relationships applies to seller–business relationships. This study therefore contributes to broaden the relevance of existing theory and the findings reported in previous studies on business relationships, but from a seller’s perspective. This is especially important considering the growing need in the B2B literature to also understand a sellers’ perspective when building long-term business-to-business relationships. Secondly it was established that sellers perceive
opportunism to be positively related to conflict in a seller–business relationship. Thirdly, it was established that sellers acknowledge that opportunism has a negative relationship to non-economic satisfaction in seller–business relationships. Seller’s in supplier–business relationships therefore view opportunism as a strain on the non-economic relationship between two parties since one partner can perceive that unfair negotiation practices or other forms of opportunism can benefit the other partner. This outcome can then ultimately have a negative influence on the economic satisfaction experienced, limiting the long-term potential of the relationship.
In addition, seller’s argue that the management of conflict becomes critically important in their relationship-building initiatives with buyers. They further argue that there has to be mutual understanding for the role of each partner in the relationship, that each partner wants to benefit economically from the relationship and that mutual exchange is founded on mutual agreement of what such exchange entails. Finally, it was validated that if both the seller and the buyer are content with the relationship and the benefits it has to offer, a long-term orientation can be secured.
Originality/value
A limited number of research studies explored the B2B relationship between opportunism, conflict and its influence on economic and non-economic satisfaction from the perspective of the seller. Opportunism and conflict as precursors to non-economic satisfaction, where economic satisfaction is an outcome, has not been previously researched from a seller–business relationship perspective. No previous study has focused on relationship marketing in B2B relationships from the perspective of a seller to establish the influence of opportunism and conflict on non-economic satisfaction, and its ultimate influence on economic satisfaction. This finding adds value as it indicates what constitutes non-economic satisfaction in seller–business relationships and how this has an influence economic satisfaction. The two precursors of non-economic satisfaction can be used in future to investigate the influence of non-economic satisfaction on different outcomes such as dependence, commitment, collaborative communication and environmental uncertainty. Considering this, the study contributes to Relationship Marketing theory by suggesting valuable measurement constructs.
... Commitment is the consequence of trust and it entails confidence from two parties to provide the stability in the relationship (Dwyer & Oh, 1987). Based on Ouedraogo and Ouakouak (2018), commitment is like a cornerstone to enhance the relationship between franchisor and franchisee in franchising. ...
This study explores the relationship between commitment and integrative negotiation. To this end, a questionnaire was designed and administered to a 100 SMEs/SMIs operating in the retail sector, selected through the quota sampling method. The results indicated that there is a positive relationship between commitment and reasoned negotiation as positively perceived by 70% of our respondents. Moreover, the results indicated also that level of commitment varies according to power of participants, as attested for by 53% of our respondents. Finally, when respondents asked about whether reasoned and integrative negotiation types are the same concepts, 67% disagreed with this conception. This indic ates that the term "reasoned" is not commonly used or frequently encountered in the field of negotiation. These results imply that negotiators should opt for a 'win-win-type' of negotiation, reasoned negotiation, instead of indulging in self-oriented styles that would not benefit both parties.
With the development of Taiwanese society, the tourist B&B industry has become particularly important, marking the origin of the significant development of the tourism industry. This study focuses on the quality of host–tourist relationships in B&Bs. It is proposed that tourists “discover” the emotions and feelings of B&B hosts through service contact processes. Although researchers have pointed out that frontline service employee personality traits affect the quality of interactions and satisfaction from the consumers’ point of view, very few studies have investigated the relationships between tourists and B&B hosts, the latter playing a double role—both as a host and a service worker. Data were collected from 422 tourists who had utilized B&B services. A quantitative analysis of the questionnaires was conducted through descriptive statistics, K-means clustering, one-way ANOVA and structural equation modeling (SEM), in order to determine the relationships among the three sets of variables. The results of this study reveal that the personality traits of B&B hosts directly affect their emotional labor and the quality of their relationships with tourists. However, the emotional labor of B&B hosts is found not to affect the quality of relationships; in this respect, our findings go counter to those of previous studies.
Purpose
This research aims to address the knowledge gaps in determining factors affecting relationship satisfaction in buyer–seller relationships, with a specific focus on sustainability orientation and asymmetric power dynamics.
Design/methodology/approach
Drawing upon the Social Exchange Theory (SET) and using a sample of 436 US-based companies, this research uses structural equation modelling to investigate the impact of sustainability orientation and asymmetric power on relationship satisfaction within these relationships. Furthermore, this research explores the moderating role of asymmetric power in the connection between differences in sustainability orientation and relationship satisfaction.
Findings
The results uncover a significant negative association between the extent of divergence in sustainability orientation between buyers and sellers and the level of relationship satisfaction. Notably, asymmetric power in buyer–seller relationships positively moderates the influence of sustainability orientation differences on relationship satisfaction.
Originality/value
This research sheds light on the increasingly vital issue of sustainability orientation in buyer–seller relationships by enhancing our understanding of asymmetric power’s role in shaping relationship satisfaction within business-to-business relationships.
Bu çalışma, geçmişten günümüze kurumsal düşünce okulu literatüründe yer alan önemli çalışmaları inceleyerek kurumsal düşünce okuluna dair sistematik bir bakış açısı sunmayı amaçlamaktadır. Bu doğrultuda, dağıtım kanallarının ekonomik temelli bir bakış açısından, davranışsal bir bakış açısına doğru daha interaktif ve teknolojik gelişmelerden etkilenen gelişiminin ana hatlarını sunmaktadır. Aynı zamanda kurumsal düşünce okulunu dört dönem altında değerlendirmektedir. Ayrıca incelenen çalışmalarda dağıtımın işlevleri, aracıların rolü, dağıtım maliyetleri, toptancılık ve perakendecilik, güç ölçümü, kanal teorileri, kanal kontrolü ve liderliği, kanal süreçlerinde davranışsal yaklaşımlar, lojistik ittifaklar, kültürlerarası ve uluslararası dağıtım kanalları, çoklu kanal ve bütünleşik kanal gibi konular öne çıkmaktadır. Dahası, bu çalışma çok kanallı dağıtım stratejilerinin ve müşteri odaklı yaklaşımların önemini vurgulayarak bütünleşik kanal yapılarına geçişin altını çizmektedir. Araştırma, kurumsal düşünce okulunun gelişimine sistematik bir genel bakış sunarak, pazarlama teorilerine ilişkin Türkçe literatürdeki boşlukları doldurmaktadır. Genel olarak, kurumsal düşünce okulu
bağlamında pazarlama teorisinin tarihsel ve çağdaş yönlerini anlamak isteyen akademisyenler, araştırmacılar ve profesyoneller için değerli bilgiler sunmaktadır.
Purpose
This study aims to develop a conceptual model to understand how customer knowledge management (CKM) affects fitness club membership renewal through the mediation of relationship quality.
Design/methodology/approach
Data were collected outside of fitness clubs using a systematic sampling method. A total of 224 valid responses were collected. Structural equation modelling was used to evaluate the relationship between the constructs of the research model.
Findings
The results indicate that both knowledge from customers and knowledge for customers have a positive influence on customer satisfaction and customer trust. Among them, knowledge for customers has a stronger influence on customer satisfaction while knowledge from customers has a greater influence on customer trust. Additionally, three dimensions of relationship quality (customer satisfaction, customer trust and customer commitment) positively influence membership renewal intention with customer commitment exhibiting the greatest influence on it.
Originality/value
This study combines the theories of CKM and relationship quality management to explain why members will renew their service contracts. By using fitness clubs as an example, this research extends the authors' understanding of how knowledge from and for customers can influence customers' attitudes and behavioural intentions towards service companies.
"Examining The Effect of Production Flexibility on The Industrial Buying Process and Suggesting A Supplementary Model"
The purpose of the research is to determine whether there is a relationship between production flexibility, supplier selection, performance, long-term collaboration, and trust. Additionally, the study aims to investigate which aspect among product mix flexibility, volume flexibility, change flexibility, and expansion flexibility has a greater impact on the supplier selection process. The main objective of the research is to explore the influence of 'Production Flexibility' on the functioning of the 'Industrial Purchasing Process' and to contribute to the model of 'Industrial Buyer Behavior' developed by Sheth (1973) by incorporating 'Production Flexibility' into the model.
The recent accession of Saudi Arabia to the World Trade Organization (WTO) will increase the country's participation in world trade and the Saudi market attractiveness to Foreign Direct Investment (FDI). As the opportunities for international trade grow, managers from across the globe, including those from the US will be engaged in negotiating with their Saudi counterparts. Owing to the cultural differences between these two countries, the need to understand how culture may affect various individual characteristics such as idealism, relativism, opportunism, and Machiavellianism and managers’ perceptions of unethical negotiation practices becomes very prominent for successful business negotiations. The present study assists in this endeavor. Specifically, this study compares managers from the two countries on their individual characteristics and also contrasts their impact on managers’ perceptions of various unethical negotiation tactics. Based on the data consisting of 259 US and 198 Saudi managers, the study findings suggest that managers across these two countries exhibit significant differences in their individual characteristics. Further, we also show that these characteristics have differential effects on managers’ perceptions of unethical negotiation tactics across the two countries. We highlight study contributions and also provide implications for the development of negotiation strategies capable of enhancing Saudi and US firms' competitiveness.
The emergence of e-commerce is changing the trends of the market and challenging the traditional Market in a huge way. The popularity of e-commerce websites impacts people's purchasing decisions. This research examines how people show their attitudes towards ecommerce websites and retail outlets. By this examination, the effectiveness of different sales mediums is identified through different methodologies using the sentiment analysis process and this methodology uses both primary and secondary data where primary data is collected directly from people and secondary data is collected from e-commerce websites. The findings of this research paper show that people show their attitude towards products depending on an ecommerce website and also this research reveals that people show a positive attitude towards a retail outlet than an e-commerce platform.
Trust has been the subject of extensive research over the last fifty years, yet the concept has routinely misconstrued and misapplied across different contexts. This lack of clarity has impeded a clear understanding of how trust is developed and applied in B2B, which in turn has proved an obstacle to developing a dynamic model of trust.
This paper explores the extant research, proposes a new and more holistic definition, adopting a multi-level analysis approach between dyads. The research design is focussed on an inter-organisation, inter-team and interpersonal multi-level analysis approach between dyads developed through qualitative grounded theory methodology, using critical incident analysis.
Through investigating the importance of commitment in developing trust in B2B organisational relationships, it concludes that B2B relationships are strategically driven from an organisational level through the relational intent and the establishment of mutual relational benefits. Furthermore, that cognitive and affective dissonance occur when relational intentions fail to meet expectations, engagement and experience that both sides had intentionally set out.
It draws on the analysis to develop a business-to-business trust DNA ™model which builds on current research by creating a framework for intention-ability-credibility-interdependence-mutual value outcomes– time that works across all organisational levels and between dyads.
Key words: Trust; business to business; mutual value; intention; interdependence; commitment.
List of abbreviations
B2B = Business to Business
B2C = Business to Consumer
CRM = Customer Relationship Marketing
ROI = Return on investment
CR = Critical realism
SLA = Service Level Agreement
CEO = Chief Executive Officer
FMCG = Fast Moving Consumer Goods
WBS = Wines, Beers and Spirits
P&L = Profit and Loss
CIT = Critical Incident Technique
Unternehmen wir nachfolgend eine Annäherung an das Thema Vertrauen als Wirtschaftsfaktor. Kurz gesagt lässt sich formulieren: Durch vertrauensfördernde Rahmenbedingungen bzw. ein vertrauensförderndes Klima, welches unzählige und nahtlos ineinander verwobene Verbindungen zwischen mannigfaltigen Wirtschaftsakteuren begünstigt, kann eine leistungsfähige Wirtschaft entstehen. In diesem Abschnitt werden wichtige Elemente bzw. Phänomene der Wirtschaftswelt beleuchtet, die mit der Vertrauensfrage in Berührung stehen.
Due to developments in information and communication technologies, main changes occur in the communication and distribution channel strategies of business. As a result of adapting technology to these strategies, omni channel applications gain great importance as information about products and services can be obtained and accessible on all channels. It is more efficient to manage them in an interdependent and harmonious manner rather than managing distribution channels one by one like different channels. In this context, businesses gain competitive advantage as a result of adopting omni channel strategies, which differ from other channel strategies in terms of flexibility and depth of integration. At this point, it is considered to be useful to examine what the omni channel experience offered by the businesses in the competitive environment means and why it is important for the businesses. Having a physical inventory close to the customer with omni channel applications (click and collect, buy online, return in store, in-store digital purchase, kiosks, self-payment points, etc.), offers businesses flexible purchasing behavior and return options to the consumer. This allows them to offer shorter delivery times compared to leading online purchasing behaviors. With the use of QR-Quick Response, information about products or services can be obtained online, or you can perform your payment transactions without losing time thanks to QR-codes. In addition, customers can have a unique experience thanks to the implementation of loyalty programs of businesses both online and integrated with traditional channels. This situation is important in order to develop and maintain relations (satisfaction, trust, commitment) between the customer and the business. In this research, it is aimed to analyze the role of customer experience on relationship quality and its effect on loyalty intention (word of mouth communication and repurchase intention) through a holistic model in terms of omni channel management. In addition, the sub-purpose of the research aims to compare the effect on customer experience and loyalty intentions depending on demographic variables, brand, shopping frequency and amount of spending. A face-to-face survey was used as a data collection tool. In the study, convenience sampling, one of the vi non-random sampling methods, was preferred as the sampling method and data of 513 participants were obtained. SPSS 21 program was used in data analysis and hypotheses regarding the research model were tested. As a result of the study, it was determined that the omni channel customer experience has an effect on loyalty intention, and the quality of the relationship has a mediating role in this relationship. The personal innovativeness dimension did not have a moderating effect on the relationship between customer experience and relationship quality. The main issue in developing the loyalty intention is that the marketing activities and customer experiences of omni channels should be evaluated within the framework of the business's plans. It should not be forgotten that it is important to provide positive customer experience to customers who use omni channels as the source of loyalty intention and to improve the quality of the relationship.
The COVID-19 pandemic is interfering with one of our most important needs as human beings: people-based interactions. While a post-pandemic future is still uncertain, people feel the need to get back as soon as possible to that 'human touch', which has always been a fundamental characteristic of marketing. Based on a sample of representatives of hotels and their privileged interlocutors in corporate clients, this chapter focuses on the quality of business-to-business relationships, in which each organisation is represented by an individual, and proposes a relationship quality model from a people-based, inter-organisational perspective, while providing relevant insights in the context of the integration between traditional and digital approaches in modern marketing.
Well‐known benefits of corporate social responsibility (CSR) are goodwill and trust. Typically, research states that if a firm engages in CSR activities that benefit stakeholder X, then stakeholder X will reciprocate with higher levels of trust. We advance this line of research by examining whether CSR activities directed to stakeholder X increase the levels of trust between the firm and a different stakeholder, Y. Specifically, we examine the consequences of CSR actions that a firm directs toward non‐supplier stakeholders on the firm‐supplier relationship. We argue that a firm's secondary stakeholder CSR (e.g., community and environment) creates trust and goodwill with third parties (i.e., suppliers) that manifests in reduced inventory days. We use a data set comprising 27,551 firm‐year observations and find that secondary CSR is associated with decreased inventory days in more complex (more heterogenous and competitive), munificent (growing), dynamic (unpredictable), and socially irresponsible (e.g., gambling and tobacco) business environments.
Purpose: Korean franchising industry has been rapidly growing since its introduction in the late 1970s. As of 2017, as a result, franchising industry accounted for 6.9% of South Korea’s nominal GDP-which is 1,730 trillion won- and employment in the industry accounted for 4.5% of economically active population in South Korea. Furthermore, statistics index shows that there are 4,882 franchise headquarters in South Korea, and this exceeds the figure of U.S. and Japan, of which the number is approximately 3,000 and 1,339 respectively.
Various advantages of franchising system are recognized as an attractive business model not only by founders but also by businesses. Franchise headquarter and franchisee are legally independent with different objectives but economically interdependent, and this constructs diversified organizational structure which makes it difficult for customers to distinguish two partners. The unique contract form makes various governance of franchisor affect relationship between franchisor and franchisee as well as franchisee’s business performance. Therefore, franchise headquarter and franchisee need to understand one another’s stance and make a concerted effort to develop the system based on the principle of reciprocity.
This research focused on a long-term relationship between franchise headquarter and franchisee, in which partners pursue mutual growth. Under this relationship, the author aimed to figure out which governance mechanism affects franchisee’s trust and commitment toward headquarter. The purpose of this paper is also to analyze relationship outcome, especially opportunistic behavior and relationship continuity, from franchisee’s point of view. This paper is distinctive from preceding research in that the author examines ex-ante governance and inspects the effect of ex-ante and ex-post governance simultaneously in a single research model.
The results of this study are as follows : first, the author set contractual completeness, safeguarding clauses, and extra contractual incentives as ex-ante governance mechanisms and assumed that these mechanisms would positively affect franchisee’s trust toward headquarter. The result shows that, unexpectedly, contractual completeness and safeguarding clauses have a
positive effect on trust, however, incentives do not have significant impact. Secondly, it was presumed that multidimensional trust-credibility and benevolence, would have positive effect on multidimensional commitment-affect and calculative commitment- toward franchise headquarter. The result supported a hypothesis in respect of benevolence, since benevolence has a positive effect on both multidimensional commitments. On the other hand, it turned out to be that although credibility positively affects affective commitment, it negatively affects calculative commitment. Thirdly, in terms of relationship between multidimensional commitments and relationship outcome variables, the research confirmed author’s hypothesis that affective commitment reduces opportunistic behavior and calculative commitment increases opportunistic behavior. The research also confirmed that multidimensional commitments have a positive effect on relationship continuity. In particular, affective commitment has a stronger positive impact than calculative commitment. Lastly, in respect of moderating effect of ex-post governance mechanisms between multidimensional commitments and opportunistic behavior, affective commitment has less impact on opportunistic behavior in
groups with high ex-post governance was negative. That means ex-post governance enlarges the effect of affective commitment on reducing opportunistic behavior.
The implications of this study are as follows. First of all, unlike existing researches, that mostly focus on ex-post governance, this paper investigates ex-ante governance as well as ex-post governance in franchise industry. As a result, the research came up with the type of ex-ante governance mechanisms that can be utilized in franchise management. Secondly, the research verified that depending on the type of trust and its target variable, the effect toward commitment differs both in terms of degree and direction. Thirdly, the research proved that affective commitment has a strong impact on relationship outcome to the extent that the effect is bigger than that of calculative commitment. Lastly, ex-post governance has a moderating effect upon affective commitment in reducing opportunistic behavior. This result illustrates the role of ex-post governance as preventive measures against franchisee’s opportunistic behavior.
Crises show all the aspects that surround a society, demonstrating whether society is equal to the demands or not. The current COVID-19 pandemic is creating a challenge for all market agents, be they politicians, entrepreneurs, or individuals, where the difficulties are presented every day from different perspectives: social, economic, educational. Therefore, both companies and individuals are implementing numerous solidarity strategies to help society and combat the effects of the health crisis. The question contemplated in this research is if this is the beginning of a new social-business paradigm, in which the results do not take precedence over the social aspects around the business market. And it is in this framework where this research focuses on studying this paradigm shift, analysing the future impact that these solidarity measures of companies will have on society, and therefore on consumer behaviour.
Purpose
The Internet has changed the nature of purchasing, proof of this being the proliferation of e-commerce sites which have seen their activity grow more quickly due to the COVID-19 pandemic. Therefore, the authors aim to investigate the impact of the consumer's hedonic motivations, price, access to information and trust on the online purchase intention.
Design/methodology/approach
A quantitative, transversal study of a conclusive nature was carried out. Based on information gathered through a questionnaire administered to a sample of 750 online purchasers, a structural equation model was estimated.
Findings
The results showed that the intention to continue purchasing in online shops is partly explained by access to information online, hedonic motivations and trust in e-commerce sites. It stands out that online information generates trust, and the perception of online prices does not influence loyalty but has a positive influence on hedonic motivations.
Research limitations/implications
Although some constructs were ignored, for example, the integration of channels, experiential marketing and the fear of fraud, including unauthorised use of personal details, the study shows that easy access to useful information about products, prices, promotions is an important antecedent of online purchase.
Practical implications
Online shop managers should pay special attention to e-commerce websites, and the information provided there should explore consumer's hedonic motivations for adventure. Furthermore, it is fundamental to create trust in order to maintain the interest in online shopping.
Originality/value
The estimation of the structural model in the context of online shopping includes the influence of utilitarian motivations (price and access to information), which offer a rational experience and also include emotional motivations (hedonic adventure motivations) on the intention to buy online. The results also revealed that it plays an important role to promote online trust and online loyalty.
Service quality is increasingly important as a strategy for business that strives to retain customer loyalty in today's highly competitive environment. Studies have investigated relationship in the context of service industry. This study examines the influence of service quality and relationship quality to mobile phone network service loyalty in the Central Region of Thailand. Questionnaires were used to collect the data from 400 users and analyzed by descriptive statistics and simple regression analysis. The finding of this study demonstrated that the influence of service quality and factors of relationship quality impacted on service loyalty, and identified strategies for mobile phone network services that should enhance their service quality and relationship quality. Theoretical and managerial contributions are explicitly provided of the current study and suggestions for further research are introduced.
Within the distribution channels of fast-moving consumer goods (FMCG), the negotiating of agreements with official suppliers is critical for the performance of small and medium-sized (SME) distributors. These distributors are limited by their size and negotiating power, which is significantly lower than that of their suppliers, leading them to seek alternative supply sources, such as that provided by the gray market. The participation of SME distributors in the gray market is not only conditioned by the negotiations with their official suppliers, but also by the role played by the size of the gray market and by the relationship with their suppliers. The literature shows very few studies into SMEs within this area of the distribution channel, so this article contributes an explanatory model of this phenomenon. Based on a sample of 181 Spanish distribution companies, our results confirm that negotiation is a favorable element, while granting limited importance to the role of the relationship. In addition, we find evidence of the key role of commitment between parties in a situation as peculiar as that of parallel marketing channels.
The wave of the Fourth Industrial Revolution (IR4.0) is a phenomenon in which one or more technologies are replaced by another technology in a short amount of time. In small and medium-sized enterprises (SMEs), some internal and external problem are occurring that suggest change from classical to technological approach. Thus, this chapter aims to establish the relationship between the employees' satisfaction toward their employer's role performance. Based on the power-dependence and agency theories, this study contributes to the SMEs industry in Malaysia and will involve IR4.0 by offering a much more comprehensive theoretical perspective to aid understanding and prepare for the revolution internally. The sample of this study comprises of employees who are working in various sectors of the SMEs industry. G-power technique was employed to find the minimum sample size in this study. Meanwhile, the SPSS and PLS will be used to analyse the data. The practical implication of this research concerns the factors that can enhance employee satisfaction if their company jumps into the IR4.0. Thus, the employer should play the right role to make sure the employees are ready and well prepared for the revolution despite there being environmental uncertainty happening in the process.
Building a relationship with the maritime supply chain partners is considered imperative for organisations to survive and remain competitive. Yet, several studies that examined the maritime supply chain have not adequately explored nor assessed the relationship constructs that impacts maritime supply chain performance. This study intends to fill this gap and ascertain the influence that certain relationship elements have on the maritime supply chain performance. The study is solely a desk research. After providing a general overview of maritime supply chain and its structure, relationship marketing paradigm and relationship constructs, this study examines the influence that the identified relationship constructs (i.e. trust, commitment and satisfaction) has on supply chain performance. The study asserts that the present of the identified relationship constructs (i.e. trust, commitment and satisfaction) among supply chain partners will influence supply chain performance positively. Hence, building a successful long-term relationship among maritime supply chain partners requires an understanding of these key relationship constructs.
While relationship exploration, or seeking alternative exchange partners, is a ubiquitous marketing channel strategy when facing a volatile marketing environment, how this strategy affects a firm's incumbent relationship is unclear. Drawing upon resource dependency theory and the dynamic capabilities perspective, we argue that a distributor's relationship exploration does not destruct but rather improves the existing relationship by enhancing the focal distributor's dynamic capabilities (e.g., absorptive capability and innovative capability) that are essential in volatile environments. However, the ultimate influence of this strategy via dynamic capabilities is contingent upon the careful alignment of dynamic capabilities with market conditions. Using a sample of electronic component distributors in China, this study confirms the role of dynamic capabilities as underlying mechanisms in the influence of relationship exploration on relationship quality. Moreover, we find that market uncertainty varies the effects of dynamic capabilities differentially; it strengthens the effect of absorptive capability, while it weakens that of innovative capability.
Academic research has paid more attention to formation and management of business relationships than to their dissolution. For example, not much is known about the extent to which dissolution intentions are predictive of actual dissolution, and whether certainty with which these intentions are held influences the likelihood of relationship dissolution. To address these questions, authors collect data in two stages from a franchise system in Korea. They specify the judgment uncertainty and magnitude parameters (JUMP) model to tease apart the magnitude and uncertainty of intention from a single measure, and a duration analysis model to study translation of intentions into behavior. Results show that not only strong intentions to dissolve a relationship are more likely to result in actual dissolution but weak intentions also are more likely to lead to dissolution if the holder is doubtful and uncertain about the relationship. Ignoring uncertainty of dissolution intentions thus can seriously downplay their risk of translating into actual dissolution.
Internet shopping is now enjoying its prevalence and rapid development in Vietnam. One of factors could be high barrier for this development is consumers’ trust. Lack of trust on websites is a primary reason why many web users do not shop online. This quantitative study is to identify the factors influencing consumers’ trust on websites from the perspective of youths. The proposed model, in this study, is empirically tested using a questionnaire-based field study. A survey of 325 online shoppers has been conducted. Regression analysis is used to test the hypothesis derived from the framework. The result indicates that consumers’ trust on Internet shopping is built on the high level of customers’ perception about the store and company reputation; system quality, and service quality of the website; as well as the effectiveness of third party recognition. Implications and suggestions for further studies were also provided in this study.
This article examines the phenomenon of plural governance, a firm's simultaneous use of market contracting and vertical integration for the same basic transaction. The author studies two particular aspects of plural governance, namely the conditions that motivate firms to deploy plural governance and the manner in which one governance form influences the other when the two coexist in a joint structure. Drawing on agency theory and information economics, the author develops a set of research hypotheses and tests them empirically in the context of industrial purchasing decisions. The results suggest that the plural governance phenomenon can be understood from the perspective of solving information asymmetry problems between buyers and suppliers. The author discusses the implications of a “make and buy” approach to extant theory of interfirm governance, relationship management, and marketing strategy in business-to-business settings.
The political economy framework illuminates interplay between the internal and external sociopolitical and economic forces of marketing channels. Framing the collection and analysis of data from retailer informants on channel environments, configuration, and decision structure, a theoretical model is developed for explaining interorganizational responses to uncertainty and dependence constraints of the channel environment. Heterogeneity is hypothesized to precipitate complex and fluid channel structures as a means of coping with uncertainty. In contrast, high levels of variability in the output environment are expected to foster vertical integration and bureaucratization as a means of reducing dependence. Support for both hypotheses is reported and implications for future research are discussed.
This article examines the reliability and validity of six scales developed by Aiken, Hage, and Hall to operationalize technology, centralization, and formalization. The discussion of the definitions of these constructs suggests a need for revision in the content of the indices of job codification and job specificity. Furthermore, these two indices, designed to operationalize formalization, have serious problems of convergent and discriminant validity while the index of task routineness operationalizes a more limited part of the technology construct than originally proposed by Perrow. The indicators of centralization are found to be both reliable and valid.
Though considerable research has been reported on the effects of coercive and noncoercive power sources in marketing channels, the particular effects of power sources that have been exercised, as opposed to those that remain unexercised, have not been identified. The authors summarize the findings of a research project examining these differential effects on selected variables of interest to channel managers, including power, conflict, dealer satisfaction, and channel performance.
Several distribution channel studies have examined the effects of various sources of a channel member's power on such phenomena as power, conflict, and satisfaction. However, as causal relationships among these power sources have not been considered, the author investigates some aspects of this issue. Specifically, the effects of reward and coercion on the expert, referent, and legitimate power sources in a marketing channel are identified. Results indicate that (1) a supplier's application of reward and punishment does affect the strength of its other three power sources and (2) these relationships exert a major influence on whatever impact reward and coercion may have on other channel phenomena such as supplier power and dealer satisfaction. The implication of this finding of a compound effect of the use of certain power sources is that channel entities should be even more circumspect about such action than would be advised on the basis of prior research in this area.
The author examines the determinants of control loss in the marketing channels of 40 U.S. manufacturers, each of which has vertically integrated into wholesale distribution by the establishment of manufacturers’ sales branches. The central hypothesis tested is that the efficiency of a vertically integrated system depends on the adoption of organizational forms which enable the firm to limit the degree of control loss and subgoal pursuit predictably resulting from vertical expansion. Control loss is operationalized in terms of the extent to which the travel and entertainment expenses of branch sales personnel exceed necessary levels. The results demonstrate the important influence of organizational structure and control systems on the efficiency of marketing operations. The findings are interpreted in terms of Williamson's organizational failures framework.
The political economy framework illuminates interplay between the internal and external sociopolitical and economic forces of marketing channels. Framing the collection and analysis of data from retailer informants on channel environments, configuration, and decision structure, a theoretical model is developed for explaining interorganizational responses to uncertainty and dependence constraints of the channel environment. Heterogeneity is hypothesized to precipitate complex and fluid channel structures as a means of coping with uncertainty. In contrast, high levels of variability in the output environment are expected to foster vertical integration and bureaucratization as a means of reducing dependence. Support for both hypotheses is reported and implications for future research are discussed.
Key informant reports from both sides of a set of wholesaler-retailer dyads are analyzed to investigate the convergent and discriminant validity of the measures. These measures, derived from a political economy model, describe the structural form and collective sentiments within the dyadic interaction. The results indicate that the structural form measures have convergent and discriminant validity. However, the sentiments variables fail to show adequate validity. The methodological and theoretical implications of the results are assessed.
The authors describe the development of multiple-item measures to capture the construct of channel member satisfaction. Two measures are developed that are found to have high levels of reliability and validity. In addition, the construct of channel member satisfaction is found to be multidimensional, involving satisfaction with products, financial considerations, social interaction, cooperative advertising programs, and other promotional assistances.
The author examines the determinants of opportunistic behavior in an interfirm relationship. Data from a franchise setting are examined for the effects of inter-organizational structure and interfirm influence on attitudes and opportunistic behavior. The results indicate that opportunism is affected by attitudes as well as such factors as interorganizational structure. Theoretical and managerial implications for the analysis of marketing channels are offered.
The relationship between various factors characteristic of channel environments and the extent of control of a channel leader in his channel is explored. The characteristics of demand, the marketing technology used, and interchannel competition are found to be correlated with greater channel control by a channel leader. Jointly, these results imply that channel leaders tend to emerge in distributive channels when the channel environment is threatening.
The authors investigate the effects of the organizational structure used for marketing planning on the credibility and utilization of marketing plans. Data on 53 organizations were obtained from multiple respondents in the marketing areas of those organizations. The results indicate that a bureaucratized planning structure with formal rules and procedures and departmental specialization can enhance both plan credibility and utilization. However, high centralization of authority affected these variables negatively. The explanatory mechanisms suggested by these results are discussed and managerial implications presented.
Based in part on previous research reported in the marketing channels literature, an approach for measuring interfirm power is developed which centers on power's hypothesized sources. Within a dyadic channel relationship, the role performance of a firm in its primary channel responsibilities is seen to drive the level of the other firm's dependence in their relationship. This dependence, in turn, determines the former firm's level of power over the latter firm. Empirical results from a study in a franchise channel system are used to evaluate the reliability and construct validity of the proposed measures.
Manifest channel conflict is operationalized in terms of the frequency and intensity of disagreements between channel members and the importance of the issues about which they disagree. Six different multiple-item unidimensional measures including from one to all three of these components are evaluated with respect to reliability and validity with a sample of automobile dealers. The measure combining frequency, intensity, and importance multiplicatively is judged superior to the others.
The author examines the reliability and validity of measures of organizational characteristics used in previous marketing studies in the areas of strategic planning and distribution channels. Key informants in 506 wholesale-distribution companies provided reports on (1) characteristics of the firm's product portfolio and (2) characteristics of the firm's power-dependence relations with its major suppliers and customers. In contrast to previous investigations, which sampled only a single informant per unit of analysis, data were collected from multiple informants in each firm. Results showed that informant reports often achieved convergent and discriminant validity when variance due to methods factors was explicitly modeled. However, partitioning of variance according to trait, method, and random error components showed that informant reports often exhibited less than 50% variance attributable to the trait factor under investigation. Implications of the findings are discussed for those marketing studies which focus on organizations or organizational subunits as the unit of analysis.
This research presents both a conceptual and a methodological framework for examining organizational buying behavior from a multiperson level of analysis. Focusing on those organizational members who participate in the procurement decision making process, this research investigates the buying group's adaptive structural configuration in response to varying levels of environmental uncertainty.
This article empirically assesses the relationship between power and the sources of power in a channel of distribution that has a well-defined power source: the franchisor-franchisee channel. In addition, the consequences of franchisors utilizing coercive versus noncoercive sources of power are examined.
Previous analysis of marketing organization has focused on the coordination of marketing activities and on organizational forms used to accomplish this, while ignoring the organization of marketing tasks at the work unit level. This article develops a contingency approach to the structure and performance of marketing activities at the work unit level, as well as higher levels within organizations, by blending the theoretical implications of traditional organization theory and transaction cost economics. Four propositions are developed to explain the effectiveness, efficiency, and adaptiveness of various marketing organizational structures. In addition, four basic structures of marketing organization are also explored.
This article presents an institutional, political economy paradigm in marketing as a complement to the presently prevailing microeconomic/marketing management concept. The latter framework provides insufficient tools for analyzing exchange structures and processes within and between organizations. Political economy is proposed as a more appropriate paradigm, as it focuses on authority and control patterns, conflict and conflict management procedures, and external and internal determinants of institutional change.
The political economy framework for the comparative analysis of marketing channel dyads proposed by Stern and Reve (1980) focused mainly on relationships between channel members. This article extends the political economy framework by indicating how environmental factors (i.e., factors external to a dyad) might influence and affect the structure and processes of the dyad. When combined with the original article by Stern and Reve, the resulting overall perspective should provide a comprehensive basis for theory development and research in the marketing channel area.
Twenty-two decision groups in three manufacturing and three research and development organizations are studied to identify the characteristics of the environment that contribute to decision unit members experiencing uncertainty in decision making. Two dimensions of the environment are identified. The simple-complex dimension is defined as the number of factors taken into consideration in decision making. The static-dynamic dimension is viewed as the degree to which these factors in the decision unit's environment remain basically the same over time or are in a continual process of change. Results indicate that individuals in decision units with dynamic-complex environments experience the greatest amount of uncertainty in decision making. The data also indicate that the static-dynamic dimension of the environment is a more important contributor to uncertainty than the simple-complex dimension.
This research presents both a conceptual and a methodological framework for examining organizational buying behavior from a multiperson level of analysis. Focusing on those organizational members who participate in the procurement decision making process, this research investigates the buying group's adaptive structural configuration in response to varying levels of environmental uncertainty.
This study examines the relation between the scarcity-munificence of organizational environments and the occurrence of illegal acts. It is hypothesized that the less munificent the organization's environment, the more effort the organization will exert to obtain resources from that environment and, thus, the more likely it will engage in legally questionable activities. Analyses of company and industry data for firms cited for unfair market practices and restraint of trade activities provide support for the hypothesis.
Several distribution channel studies have examined the effects of various sources of a channel member's power on such phenomena as power, conflict, and satisfaction. However, as causal relationships among these power sources have not been considered, the author investigates some aspects of this issue. Specifically, the effects of reward and coercion on the expert, referent, and legitimate power sources in a marketing channel are identified. Results indicate that (1) a supplier's application of reward and punishment does affect the strength of its other three power sources and (2) these relationships exert a major influence on whatever impact reward and coercion may have on other channel phenomena such as supplier power and dealer satisfaction. The implication of this finding of a compound effect of the use of certain power sources is that channel entities should be even more circumspect about such action than would be advised on the basis of prior research in this area.
The authors investigate the effects of the organizational structure used for marketing planning on the credibility and utilization of marketing plans. Data on 53 organizations were obtained from multiple respondents in the marketing areas of those organizations. The results indicate that a bureaucratized planning structure with formal rules and procedures and departmental specialization can enhance both plan credibility and utilization. However, high centralization of authority affected these variables negatively. The explanatory mechanisms suggested by these results are discussed and managerial implications presented.
Key informant reports from both sides of a set of wholesaler-retailer dyads are analyzed to investigate the convergent and discriminant validity of the measures. These measures, derived from a political economy model, describe the structural form and collective sentiments within the dyadic interaction. The results indicate that the structural form measures have convergent and discriminant validity. However, the sentiments variables fail to show adequate validity. The methodological and theoretical implications of the results are assessed.
The author examines the determinants of control loss in the marketing channels of 40 U.S. manufacturers, each of which has vertically integrated into wholesale distribution by the establishment of manufacturers' sales branches. The central hypothesis tested is that the efficiency of a vertically integrated system depends on the adoption of organizational forms which enable the firm to limit the degree of control loss and subgoal pursuit predictably resulting from vertical expansion. Control loss is operationalized in terms of the extent to which the travel and entertainment expenses of branch sales personnel exceed necessary levels. The results demonstrate the important influence of organizational structure and control systems on the efficiency of marketing operations. The findings are interpreted in terms of Williamson's organizational failures framework.
The relationship between various factors characteristic of channel environments and the extent of control of a channel leader in his channel is explored. The characteristics of demand, the marketing technology used, and interchannel competition are found to be correlated with greater channel control by a channel leader. Jointly, these results imply that channel leaders tend to emerge in distributive channels when the channel environment is threatening.
Though considerable research has been reported on the effects of coercive and noncoercive power sources in marketing channels, the particular effects of power sources that have been exercised, as opposed to those that remain unexercised, have not been identified. The authors summarize the findings of a research project examining these differential effects on selected variables of interest to channel managers, including power, conflict, dealer satisfaction, and channel performance.
Based in part on previous research reported in the marketing channels literature, an approach for measuring interfirm power is developed which centers on power's hypothesized sources. Within a dyadic channel relationship, the role performance of a firm in its primary channel responsibilities is seen to drive the level of the other firm's dependence in their relationship. This dependence, in turn, determines the former firm's level of power over the latter firm. Empirical results from a study in a franchise channel system are used to evaluate the reliability and construct validity of the proposed measures.
This paper proposes that crisis can be denoted with a specific meaning applicable to organizational behavior. A tentative series of interrelated propositions suggests how a crisis in an organization's external environment can activate behavior within the organization which hinders its response to the crisis. The propositions are illustrated with material from a range of political and nonpolitical studies. Some attention is directed to possible means of making the eight principal variables operational.
Manifest channel conflict is operationalized in terms of the frequency and intensity of disagreements between channel members and the importance of the issues about which they disagree. Six different multiple-item unidimensional measures including from one to all three of these components are evaluated with respect to reliability and validity with a sample of automobile dealers. The measure combining frequency, intensity, and importance multiplicatively is judged superior to the others.
The role of size as a variable in studies of organizational structure is critically reviewed on the basis of an analysis of 80 empirical studies carried out between 1950 and 1974. A number of conceptual and empirical problems in these studies are noted and their implications are pursued. It is argued that size has generally been defined in terms too global to permit its relation to organizational structure to be understood adequately. An alternative conceptualization is presented.
A holistic construal is presented to represent and test organizational theories, using examples from contemporary organizational theory and data from a recent study of wholesale distribution companies. The methodology provides a mechanism for linking theory construction and theory testing in organization research by explicitly representing theoretical and empirical concepts, nonobservational hypotheses, and correspondence rules. Unlike traditional methods used for construct validation and hypothesis testing, the methodology permits the researcher to model the extent of random and systematic error in measures of theoretical concepts and to control these sources of error when testing substantive hypotheses. Comparisons made between the holistic construal and traditional procedures show how the latter can lead to inaccurate conclusions about the status of a theory's constructs, hypotheses, and measures.
The authors describe the development of multiple-item measures to capture the construct of channel member satisfaction. Two measures are developed that are found to have high levels of reliability and validity. In addition, the construct of channel member satisfaction is found to be multidimensional, involving satisfaction with products, financial considerations, social interaction, cooperative advertising programs, and other promotional assistances.
The experiment investigated the role of a select number of factors to determine their influence on the level of trust between the partners in Japanese-American joint ventures. Results showed that Japanese managers perceived greater future trust when 1) they have position power, 2) interpersonal relations between the partners are good, 3) the joint venture is profitable, and 4) they initiate and thus control a decision-making process.
The confirmatory factor-analytic model of analysis is discussed in terms of the general process of constructing social theory-the generation of parameter estimates for a proposed structure, the assessment of a proposed structure, the interpretation of a proposed structure, and example applications. First-order, second-order, and structural equation confirmatory factor models are discussed in relation to Joreskog's model for the estimation of parameters in general theoretical structures, LISREL.
This paper presents a model of trust and its interaction with information flow, influence, and control, and reports on an experiment based on the model to test several hypotheses about problem-solving effectiveness. The subjects were managers and the independent variable was the individual manager's initial level of trust. Groups of business executives were given identical factual information about a difficult manufacturing-marketing policy problem; half the groups were briefed to expect trusting behavior, the other half to expect untrusting behavior. There were highly significant differences in effectiveness between the high-trust groups and the low-trust groups in the clarification of goals, the reality of information exchanged, the scope of search for solutions, and the commitment of managers to implement solutions. The findings indicate that shared trust or lack of trust apparently are a significant determinant of managerial problem-solving effectiveness.
This article empirically assesses the relationship between power and the sources of power in a channel of distribution that has a well-defined power source: the franchisor-franchisee channel. In addition, the consequences of franchisors utilizing coercive versus noncoercive sources of power are examined.
The author examines the determinants of opportunistic behavior in an interfirm relationship. Data from a franchise setting are examined for the effects of interorganizational structure and interfirm influence on attitudes and opportunistic behavior. The results indicate that opportunism is affected by attitudes as well as such factors as interorganizational structure. Theoretical and managerial implications for the analysis of marketing channels are offered.
An empirical investigation examining the environmental uncertainty regarding inventory ordering which confronts a retailer in dealing with its suppliers is described. Of particular interest is how this uncertainty impacts on retailers' behavioural relationships with their suppliers. The findings indicate that increased levels of environmental uncertainty regarding inventory ordering result in higher levels of retailer‐supplier conflict. Suppliers that can offer retailers better customer service in order to reduce environmental uncertainty can improve their relations with retailers and thus develop a more efficient distribution system.