Market and supplier characteristics driving distributor relationship quality in international marketing channels of industrial products

Abstract

Although we are beginning to comprehend the fundamental importance of relationship quality in interorganizational exchange, a relatively small, but growing, body of literature that has not kept pace with the tremendous growth in global channel transactions has been devoted to the development of cross-border relationship quality. This study addresses this gap in the literature by investigating the extent to which certain market and exporter characteristics affect the development of relationship quality in the context of importing distributors trading with exporting manufacturers of industrial products. Relationship quality is viewed as a higher-order construct composed of trust, commitment, and satisfaction. Findings reveal that psychic distance is related negatively to relationship quality, while transaction-specific investments and role performance are associated positively with relationship quality. No link is found between environmental uncertainty and relationship quality. Managerial implications of the findings are considered and limitations along with future research directions discussed.

Pricing to manage export channel relationships

“…While role performance has been used mainly in relation to the exporter (e.g., Kumar & Bergstrom, 2008;Skarmeas, Katsikeas, Spyropoulou, & Salehi-Sangari, 2008), we agree with Frazier (1983) that for a fruitful dyadic relationship, role performance needs to work both ways.…”

Do supplier perceptions of buyer fairness lead to supplier sales growth?

“…(Palmatier et al, 2007a). To address the multidimensionality of business relationship characteristics, a number of studies have focused on the concept of relationship quality (Huntley, 2006;Jap et al, 1999;Palmatier, 2008;Skarmeas et al, 2008). …”

“…On the other hand, suppliers, particularly in a turbulent market, often learn to develop capabilities and invest in infrastructures, which allow them to work with different manufacturers where possible. Thus, what drives the sales levels, and their growth, is not solely the manufacturer's autonomous decision, rather it is the quality of the relationship with a particular supplier, and the resulting interactions between the parties, that drives sales (Palmatier et al, 2007b;Skarmeas et al, 2008). Therefore, it is expected that, ceteris paribus, higher levels of trust and commitment increase the sales level of a supplier within that relationship over time (Huntley, 2006).…”

Properties of quality constructs in Canadian business relationships

“…Therefore, an employee within an organisation that trusts a supplier has confidence in the supplier's reliability and integrity while commitment to the supplier indicates that the customer believes that a relationship will be worth continuing into the future. Skarmeas et al (2008) state that "…satisfaction is a focal outcome of buyer-seller relationships that is generally unlikely to develop in the absence of trust and commitment…" (p.25). Sheu et al (2006) suggest that trust was positively related to long-term customer-supplier orientation and that the managers collaborated within the dyad, which subsequently leads to increased satisfaction overall.…”