This paper attempts to examine major factors that drive relationship quality and strength in business-to-business transactions. Three major factors, including offering characteristics, managers' interpersonal factors (similarity, expertise), and relat...
This paper attempts to examine major factors that drive relationship quality and strength in business-to-business transactions. Three major factors, including offering characteristics, managers' interpersonal factors (similarity, expertise), and relational factors (relationship age, cooperation, and dependence), were proposed to affect relationship quality, and indirectly affect relationship strength. In addition, both economic/instrumental dimension (such as offering characteristics and calculative commitment) and affective, relational dimension (relationship quality) are also expected to influence relationship strength.
In the empirical study which used the textile-dyeing company managers' evaluations of local exporters, structural equation modeling presented a well-fit evidence that relationship quality and strength are influenced by their proposed antecedents. Specifically, it was found that six characteristics which dying manufacturers perceive have direct effect on their relationship quality(trust and commitment) with local exporters, and indirectly impact on relationship strength which was measured along dimensions of intention to continue the business relationship in the future and the current share of business given to a local exporter. Coupled with the minor influence that instrumental dimensions (offering characteristics and calculative commitment) have on strength, this study suggests that the propensity to remain in business relationship or current proportion of business shared is influenced more by socio-sentimental attachment or affective assessment like relationship quality than by cost/benefit evidence or calculative motivation.