The purpose of this study is to find out the determinants of long-term inclination between Korean suppliers and local retailers of household electric appliances in China-Korea. The constructs examined here include trust, dependence, environmental unce...
The purpose of this study is to find out the determinants of long-term inclination between Korean suppliers and local retailers of household electric appliances in China-Korea. The constructs examined here include trust, dependence, environmental uncertainty (volatility & diversity), transaction specific assets, reputation, and satisfaction.
It is hypothesized that trust (credibility and benevolence), satisfaction, and dependence have positive impacts on long-term orientation. At the same time, it is hypothesized that volatility and transaction specific assets have a positive impact on dependence while diversity has a negative impact. In addition, reputation has a positive impact on trust (credibility and benevolence).
A total of 148 questionnaires were collected by surveying household electric appliance retailers in Beijing, China. The result of analysis shows strong support for the hypotheses. But, the relationship between volatility and dependence, reputation and credibility, credibility and long-term orientation is not supported.
A total of 147 questionnaires were collected by surveying household electric appliance retailers in Seoul, Korea. The result of analysis shows strong support for the hypotheses. But, the relationship between diversity and dependence. reputation and credibility, benevolence and long-term orientation, transaction specific assets and trust is not supported.