In the rapidly changing environments, business marketing firms seek more flexible and creative means for meeting competition. Many firms meet the challenges by strategic alliances, collaborative relationships, working partnerships, or network organiza...
In the rapidly changing environments, business marketing firms seek more flexible and creative means for meeting competition. Many firms meet the challenges by strategic alliances, collaborative relationships, working partnerships, or network organizations. As business marketers placed greater more emphasis on building long-term relationships, trust has assumed a central role in the development of marketing theory and practice.
The purpose of this study is to provide new insight in the role of trust in marketing and how trust can be built in the context of industrial buyer-supplier relationships. The theoretical model is tested on data collected from more than 350 buyer firms.
Several tentative hypotheses were as follows;
H₁: Butying firm trust in the supplier firm is positively related to the length of relationship and the stability of relationship.
H₂: Buying firm trust in the supplier firm is positively related to the ability of supliers
H₃: Buying firm trust in the supplier firm is positively related to the level of shared value between buyer and suppliers.
H₄: The higher level of buying firm trust in the suppliers, the higher level of relationship commitment.
H5 : Buying firm relationship commitment is positively related to the length of relationship and the stability of relationship.
As tested by the LISREL, tentative hypotheses were accepted except H₂