Validating the relationship between trust, commitment, economic and non-economic satisfaction in South African buyer-supplier relationships (original) (raw)
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South African Journal of Economic and Management Sciences
Background: There is a clear difference of opinion amongst researchers on the interrelatedness of the variables trust, commitment, satisfaction, coordination, cooperation and continuity in a business-to-business (B2B) environment. The reason is that in previous studies much emphasis has been placed on creating and testing new theories, and not on providing practical generalities.Aim: The aim of this study was to determine how the variable satisfaction is positioned in relation to trust and commitment, and how satisfaction relates to the variables coordination, cooperation and continuity in a South African B2B environment.Setting: This study replicates a similar study conducted in 2013 in a B2B environment in South Africa and hopes to validate the outcome of that study by determining the relationship between the constructs postulated in the current study. The relationships between the different constructs in the proposed model will, therefore, provide a longitudinal perspective which...
South African journal of business management, 2019
Background: A relationship marketing approach to the management of business relationships can enhance overall customer satisfaction and reduce economic risks, such as opportunism that is associated with business dealings. Aim: The aim of this study was to establish whether a positive relationship exists between trust and commitment, whether trust has a positive influence on commitment, whether trust and commitment positively influence satisfaction and whether opportunism and conflict are outcomes of satisfaction in South African buyer-supplier relationships. Setting: Top 500 companies operating in the South African private sector. Methods: Using a structured questionnaire, data were gathered from 250 large companies in South Africa and were analysed through the application of structural equation modelling (SEM). Results: The findings indicate that both trust and commitment were perceived as important antecedents of satisfaction in a South African business-to-business environment, and that trust is a precursor to commitment in relationship building between organisational buyers and sellers in South Africa. This study adds value by assisting business-to-business buyers and sellers in South Africa on variables to consider when developing relationship-building strategies. Conclusion: Both parties to a relationship should therefore build relationships founded on trust and commitment. This will enhance their joint satisfaction, resulting in less opportunism and conflict, and will foster long-term relationship building based on mutual satisfaction. In contrast, dissatisfaction could increase opportunism and conflict between the parties, leading eventually to the termination of their business relationship.
Precursors and outcomes of satisfaction in business relationships : a replication study
Management Dynamics : Journal of the Southern African Institute for Management Scientists, 2014
The purpose of the empirical study was to determine the precursors and outcomes of customer satisfaction in the South African hawkers/vendors in the leafy vegetable market. Purposive sampling technique was used to collect data from 370 street vendors/hawkers using a self-administered questionnaire. Data were analysed using the structural model with the aid of SmartPLS 3. One of our findings reveals that word-of-mouth, commitment, trust, and customer loyalty are significantly influenced by customer satisfaction. This finding makes a major contribution to academic and practice because most literature, support the notion that trust and commitment are precursors of customer satisfaction. The results show that suppliers/farmers of leaf vegetables need to establish relationships that are focused on communication and product mix in order to satisfy customers in the leaf vegetable market. Our findings cement the argument that the relationship between the variables, i.e., trust, commitment, and satisfaction are interdependent and multifaceted. One can, therefore, conclude that the relationship between these constructs is dependent on characteristics of samples used for the study, industry sector and product type amongst other factors.
International Conference on Global Business, Economics, Finance and Social Sciences (ICGBEFSS-19) on 18th November 2019, Kuala Lumpur, Malaysia. , 2019
Empirical studies investigating relationship intentions associated with relationship marketing tactics has gained eminence in academia and business. As deliberations on relationship marketing intentions mature, there are concerns yet to be clarified, some relating to customer insights concerning the relationships intentions and relationship quality. Given the prominence of customer buying patterns in modern marketplaces, this study aims to empirically analyse the association between suppliers' relationship quality and customer perceptions relating to the antecedents of buyer-seller relationship intentions in B2B contexts, with reference to South Africa's concrete product environment within the construction industry. Civil and Building contractor segments were deemed fit as target respondents, due to their scope of work and size. The social exchange theory and the relationship marketing theories provided a hypothetical lens by which to study and explain perceptions of (customer's) civil and building contractor's antecedents of relationship intentions, towards (supplier's) concrete product manufacturer's degree of relationship quality. Data was collected using probability sampling (systematic random sampling) procedure. A structured self-administered questionnaire was used. Data was analysed from 560 completed questionnaires. Data was analysed through the use of SPSS and AMOS (version 25.0). The exploratory factor analyses produced 8 distinct factors (flexibility, information sharing/exchange, trust, fear of relationship loss, forgiveness, involvement, expectations and feedback). Confirmatory factor analyses were undertaken using the maximum estimation likelihood to measure the suitability of the measurement model. All items scored factor loadings above the minimum acceptable threshold of 0.50 (Goodness-of-Fit Index (GFI)= 0.824, Comparative fit index (CFI)= 0.903, Incremental Fit Index (IFI)= 0.904, Tucker-Lewis index (TLI)=0.900, Root mean square error of approximation (RMSEA)= 0.50, Chi-square (CMIN/DF)= 2.422). The results of the correlation analysis between the antecedents of relationship intention (Expectations) r= 0.551, (Involvement) r = 0.554, (Trust) r= 0.389 (Forgiveness) r= 0.642, (Feedback) r=0.399 (Flexibility) r=0.190, (Information sharing) r=0.013 (Fear of relationship loss) r=0.215 with relationship quality were computed. The findings of the study advocate that suppliers develop programmes that foster and improve application of marketing strategies, which intensifies their relationship quality levels. It is recommended that concrete product manufacturer-suppliers should at all times meet or exceed customers' needs and requirements as customers who expects more from their supplier, are intolerable when it comes to product and service improvements, which influences them to build lasting relationships with organizations.
Effect of Trust , Satisfaction and Other Relationship Dimensions on Supplier Relationship Management
2014
Supplier relationship management is working collaboratively with those suppliers that are vital to the success of the organization, to maximize the potential value of relationships. This in turn increases the overall effectiveness of the organization as well as that of supplier that further on results in the overall value of the product/ service generated. Many growing companies focus on the price of their suppliers, along with the price there are many factors to be considered in the supplier relationship like trust, benevolence, satisfaction, communication and commitment. A questionnaire was prepared based on the literature review so select the most prevailing attributes in the Indian scenario, followed by a survey among the Indian organizations. This paper reports the findings of a survey carried out in 28 Indian organizations to ascertain the impact of various relationship dimensions in buyer-supplier relationship. The main findings of this survey are that in spite of the present...
Trustworthiness and Fulfilled Commitment in the Supplier-SMEs Relationship
2020
Strong global competition demands a strong relation and maintains the relationship between suppliers and small business enterprises (UKM). This study examines trust and commitment which are affected by transaction cost and supplier relations. The data were collected from business owners of UKM Kampung Kue in Surabaya, using questionnaires that were distributed to 65 respondents. The collected data were processed with a smartPLS software to get the outer model and the inner model. The results show that transaction cost has a positive and significant effect on supplier relations and trustworthiness, with P value of 0.000, and trustworthiness has a positive and significant effect on fulfilled commitment, with P value of 0.000. The results also show that the strongest relationships happen between transaction cost and supplier relations, of 0.732, and between transaction cost and trustworthiness, of 0.612. Therefore, transparency in pricing, supply availability, and payment becomes impor...
2018
Background: Due to increased global competitiveness many firms have started focusing on their core business and outsource sub-processes. Hence, firms are becoming more dependent on the performance of other parties. As a result, supply chain relationships is recognized as a crucial factor to succeed. In regards to this, the understanding of power in supply chain relationship is still limited as argued by scholars. Indeed, researchers are just beginning to explore power relationships within supply chain which is a frequent concern in management practice. Given that, it is relevant to shed light on direct effects of the different kinds of power on important relationship outcomes such as trust and commitment. Purpose: The purpose of this study was to contribute to the literature surrounding power relationships within supply chain as well as critical relationship elements. Under these circumstances, it seeks to provide answers to the following research questions: (1) “How do buyers build...
Antecedents of Retailer Trust on Supplier to Create Long Term Relationship
JURNAL APLIKASI MANAJEMEN, 2018
This research aims to reveal the role of communication, satisfaction, and commitment as the antecedents of trust; also, this research observes the role of trust in the longterm relationship.Data collection is done through questionnaire distribution. The questionnaire is sent to 80 owners/managers of laptop retail stores in Malang city. The respondents are chosen using purposive sampling technique. Data analysis technique this research using path analysis. The result indicates that communication, satisfaction, and commitment influence trust; next, trust affects the long-term relationship. Communication has the most significant effect on trust compared to commitment and satisfaction. This finding is expected to be able to help the retailers in maintaining the long-term relationship with their supplier by considering the relationship between trust and communication as well as satisfaction and commitment with their supplier.
Cogent Business and Management, 2023
Business to business (B2B) relationships in South Africa’s concrete product market are characterised as transactional, asymmetrical and adversarial. This study examines the outcomes of relationship quality satisfaction in South Africa’s construction industry. Quantitative data was collected from 560 concrete product suppliers in South Africa. Expectation, involvement and flexibility emerged as the major factors that favourably influence perceptions of relationship quality. Moreover, the study showed low levels of trust, forgiveness, and communication between concrete product suppliers and civil contractors. Increased collaboration, trust and communication are recommended as strategies for managing incidences of conflict. The findings of this study underscored the need by concrete product suppliers (CPS) and civil engineering managers to improve the quality of communication. To be effective, communication should be planned in a manner that is proactive such that market information is timeously shared in a way that minimises risk exposure. Quality communication may also be enhanced by leveraging the power of internet enabled channels, whilst being attentive to reduce incidence of information leakage. The study findings also suggest the need to invest in trust building, since lack of trust breeds uncertainty which compromises project quality. Subjects: Construction Business Management; Relationship Marketing
Achieving high satisfaction in supplier‐dealer working relationships
Supply Chain Management: An International Journal, 2003
Increased attention has been paid to the question of how to build stable and long‐term working relationships between suppliers and dealers. This study proposes a conceptual model including behavioral dimensions of supplier‐dealer relationships and presents hypotheses about how to achieve satisfactory inter‐organizational relationships. Satisfaction is the consequence of working relationships focused upon in our model. The model is an empirical assessment of the relationship between Swedish lumber dealers and their suppliers. T‐test evidence suggests that all proposed critical variables, with the exception of coercive power, are of significant importance for achieving a high rate of perceived relationship satisfaction, regardless of whether the relationship is characterized by a high or a low level of trust and commitment. A good reputation, close relationship and positive relationship benefits are key variables for the achievement of high satisfaction in a “high‐trust and commitment...