Dealer’s Legitimate Power and Relationship Quality in Gaunxi Distribution Channel: A Social Rule System Theory Perspective

Abstract

Relative to the volume of research into B2B channel power effects on relationship outcomes and relationship quality in gaunxi distribution channel, individual channel power effects have received much less attention than plodded channel powers. To tackle this imbalance, this study examines the direct effects of dealer's legitimate power on four dimensions of relationship quality (cooperation, relationship commitment, relationship satisfaction and trust) from the perspective of small and medium enterprise (SME) manufacturers. In order to understand how gaunxi distribution channels operate, social rule system theory is utilized. Four hypothesized relationships are tested with a sample of 400 manufacturing SMEs in Taiwan. The results suggest that dealer's legitimate power positively influences SME manufacturers' cooperation, relationship satisfaction, relationship commitment and trust in a significant way. Managerial implications of the findings are discussed and limitations and future research directions are indicated.

The impact of corporate governance on firm competitiveness and performance of small and medium enterprises in South Africa: A case of small and medium enterprises in Vanderbijlpark

“…A t-test was also carried out for the hypothesised correlation between corporate governance and firm performance of SMEs and a result of 3.569 was obtained as shown in Table 5. The T-statistic of 3.569 is above the acceptable level of 2.0 (Chinomona 2013), thus signifying that corporate governance adoption and compliance with corporate governance principles by SMEs significantly and positively influence their firm performance of SMEs. In the light of this, the depicted values in Table 5 and Figure 2 substantiate H 1 on the grounds that the two standards of significance and positive path coefficient have been satisfied.…”

“…This quantitative methodology, which performs structural equation modelling by using SMART PLS, is advantageous in the sense that the reliability and validity form part of the findings. More so, for sample data of less than 200, Smart PLS is known to produce robust results (Chinomona 2013).…”

“…Furthermore, convergent validity was tested by employing item or factor loadings of above 0.5 according to the corresponding variables (Chinomona 2013). The main measures of discriminant validity in this article were the average variance extracted (AVE) values and making sure there were no multiple collinearity problems between all the measures of the three latent variables (Chin 1998).…”

The Impact of Islamic Banking on Entrepreneurial Motivation, Firm Competitiveness and Performance in South African Small and Medium Enterprises

“…In addition, convergent validity was measured using items with loadings of more than 0.5 on their respective (a priori) constructs (Chinomona, 2013). Discriminant validity was measured using the average variance extracted (AVE) values and ensuring that there were no significant inter-research variables cross-loadings (Chin, 1998).…”

Inter-Firm Governance and Relationship Quality: A Study on 3pl Firms

“…We included five items from Fierro & Redondo (2011); four items from Leonidou et al (2013); two items from Chinomona (2013); and one item from Kang et al (2013) in our questionnaire. Contract formalization construct is measured by adapting the three-item scale developed by Cannon and Perreault (1999).…”