10 1108@08858621111156395 PDF
10 1108@08858621111156395 PDF
10 1108@08858621111156395 PDF
Sunil Venaik, Yunxia Zhu, Paul Brewer, (2013),"Looking into the future: Hofstede long term orientation versus GLOBE future
orientation", Cross Cultural Management: An International Journal, Vol. 20 Iss 3 pp. 361-385 http://dx.doi.org/10.1108/
CCM-02-2012-0014
Daniel D. Prior, (2012),"The effects of buyer-supplier relationships on buyer competitiveness", Journal of Business &
Industrial Marketing, Vol. 27 Iss 2 pp. 100-114 http://dx.doi.org/10.1108/08858621211196976
Yongtao Song, Qin Su, Qiang Liu, Tieshan Wang, (2012),"Impact of business relationship functions on relationship
quality and buyer's performance", Journal of Business & Industrial Marketing, Vol. 27 Iss 4 pp. 286-298 http://
dx.doi.org/10.1108/08858621211221661
Access to this document was granted through an Emerald subscription provided by emerald-srm:566188 []
For Authors
If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service
information about how to choose which publication to write for and submission guidelines are available for all. Please visit
www.emeraldinsight.com/authors for more information.
About Emerald www.emeraldinsight.com
Emerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of
more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online
products and additional customer resources and services.
Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics
(COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.
Abstract
Purpose – This article seeks to analyze the concept of the long-term orientation of relationships in the supply chain (SC). This research aims to study
interactions between satisfaction and commitment with the relational perspective of firm-supplier relationships.
Design/methodology/approach – The establishment of a “post-satisfaction” framework is necessary. A model based on structural equations is used
to test the set of hypotheses.
Findings – The findings show that cooperation, communication, satisfaction, proved trust and commitment explain the long-term orientation of the
relationships in the SC.
Research limitations/implications – This research only considers the buyer’s perspective. The article considers some implications relating to different
profiles of trust.
Downloaded by La Trobe University At 02:02 12 February 2016 (PT)
Practical implications – The article includes several implications about how to communicate with customers and suppliers, how to cooperate with
customers and suppliers, why buyers trust suppliers, how buyers perceive satisfaction, and how buyers commit to suppliers.
Originality/value – This research, based on its “post-satisfaction” approach, aims to complete the framework proposed by Cambra and Polo. Ideas
related to the evolution of trust (“previous” vs “proved” trust) are discussed.
Keywords Supply chain management, Commitment, Customer satisfaction, Trust, Long-term orientation
An executive summary for managers and executive importance of communication between partnerships.
readers can be found at the end of this article. However, authors such as Cambra and Polo-Redondo
(2008) and Sila et al. (2006) still call for works that give
additional insights into this relational framework.
1. Introduction
The work of Cambra and Polo-Redondo (2008) suggests a
Competitive structures are undergoing changes that have link between SCM and RM and explains the level of
significant repercussion on the profile of firm relationships satisfaction perceived by industrial customers. For these
(Morrisey and Pittaway, 2006; Rao et al., 2006). These authors, communication, cooperation, trust, and the capacity
changes are affecting the management of firm-supplier of the supplier to meet the customer’s expectations determine
relationships and therefore authors such as Quayle (2003) the level of satisfaction perceived by firms. We aim to complete
or Sako (1992) have proposed that a portfolio of adequate that research by analyzing the factors, which define the
relationships is essential for entrepreneurial success. relational framework. As Abdul-Muhmin (2005) comments,
Consequently, the idea that the appropriate management of satisfaction and commitment may be the key factors that
firm-supplier and firm-customer relationships is the basis of determine the long-term orientation of these relationships.
success in B2B markets is fully consolidated (e.g. Ghosh et al., However, RM literature highlights that factors like
2004). This research is focused on the specificities of firm- communication, cooperation and trust also affect the long-
supplier relationships. term orientation of industrial relationships. But because inter-
A review of the literature reveals a vast array of approaches firm relationships evolve, the nature, content and influence of
for analyzing a relational perspective. For example, Rauyruen factors such as communication and trust may change.
and Miller (2007) consider relationship constructs as This research aims to:
reference. Morrisey and Pittaway (2006) base their study on .
analyze the factors that, based on the RM literature,
a set of social factors, whereas Rao et al. (2006) reflect on the determine the long-term orientation of supply
The current issue and full text archive of this journal is available at
The authors are very grateful for the comments made by the reviewers.
www.emeraldinsight.com/0885-8624.htm The authors are also very grateful for the economic support received from
the projects ECO2008-04704 and DGA138-08.
395
Post-satisfaction factors affecting supply relationships Journal of Business & Industrial Marketing
Jesús J. Cambra-Fierro and Yolanda Polo-Redondo Volume 26 · Number 6 · 2011 · 395 –406
relationships and complement other previous works that Consequently, we can identify two phases where the
have considered this relational approach; satisfaction perceived by buyers is the key reference: the
.
complete the framework proposed by Cambra and Polo- “pre-satisfaction” and “post-satisfaction” stages. The “pre-
Redondo (2008); satisfaction” phase could be defined as the “period between
.
contribute to the specialized literature in both SCM and the initial customer-supplier contacts and the evaluation of
relationship marketing; and the achieved satisfaction level”. The research of Cambra and
.
assess the main implications for management. Polo-Redondo (2008) studies this stage and concludes that
cooperation, communication, trust and adaptation to
It also includes considerations related to the SME context.
expectations are determining factors for the firm’s
satisfaction with its suppliers. In this framework, the “post-
2. SCM, relational life cycle, and long-term satisfaction” phase could be defined as the “stage of the
orientation of firm-supplier relationships: relationship after the evaluation of the achieved satisfaction
level, in which the agents are aware of the real capacity of their
pre-satisfaction vs post-satisfaction context
partner”. This stage could determine the long-term
Adopting the supply chain perspective in a B2B context, the orientation of the relationship. After an additional revision
relationships that companies establish with their suppliers are of the RM literature, we can conclude that two of the key
complex (Grönroos, 2000; Morgan and Hunt, 1994): several elements that determine the relational approach of firm-
factors define the conditions of the relationship and determine supplier relationships are the satisfaction perceived by the
the results obtained. These factors evolve over time (Schurr, customer and its commitment to the relationship (e.g. Polo-
2007; Grönroos, 2000). Redondo and Cambra, 2007; Abdul-Muhmin, 2002). Abdul-
Downloaded by La Trobe University At 02:02 12 February 2016 (PT)
From the buyer’s perspective, demand-supply chain Muhmin (2005, p. 621) recognizes explicitly that “both
management considers the identification of potential practitioners and academics have become interested in
suppliers, the evaluation of different alternatives, the selection relationship satisfaction and commitment because they are
of suppliers, and the measurement of the real performance thought to lead to desirable relational outcomes like long-
obtained (Cambra and Polo-Redondo, 2007; Lo and Yeung, term orientation”.
2006). In this context, the supplier’s capacity to meet the As explained before, one must not only consider satisfaction
customer’s needs and its ability to manage other relational when analyzing the continuity of inter-firm relationships.
aspects (e.g. communication and cooperation) become key Other elements, such as commitment, cooperation,
factors that determine the potential long-term orientation with communication and trust, also have an influence, directly or
that supplier (Sila et al., 2006; Grönroos, 2000). indirectly, on the long-term orientation. There have been
Adoption of the Relational Life Cycles (RLC) models many studies of the influence of communication, cooperation
allows analysis of the evolution of demand-supply and trust. The literature shows that communication
relationships (Cambra and Polo-Redondo, 2007; Jap and influences the relational approach during the whole
Ganesan, 2000; Wilson, 1995; Dwyer et al., 1987). These development of inter-firm relationships, affecting both trust
models consider different stages. Although their modeling (e.g. Kwon and Suh, 2004; Morgan and Hunt, 1994) and
differs, by comparing these articles, we can find common satisfaction (e.g. Handfield and Bechtel, 2002). Cambra and
ideas between them. First, available alternatives are identified Polo-Redondo (2007), and Horvart (2001) consider
and assessed. Next, RLCs models propose an initial stage cooperation an antecedent of satisfaction, and Rao et al.
where early firm-supplier contacts occur. After that, we can (2006), Beckman and Robinson (2004) and Morgan and
identify an intermediate period where the results obtained are Hunt (1994) have studied other causal links connected to
compared with those expected and, if the comparison is other relational constructs. But few prior works have explicitly
satisfactory, we consider the continuity of the relationship. differentiated, in the same research, the nature of trust at the
Stability and a mutual interest in maintaining the present beginning of the relationship and after measuring the
relationship and adopting a long-term orientation characterize supplier’s real performance. The works of Andaleeb (1996),
the next stage. Sako (1992), Ganesan (1994), Mackenzie and Hardy (1996)
Therefore, satisfaction seems to be one of the fundamental and Geyskens et al. (1999) are pioneering and fundamental
factors determining the continuity of supply relationships references in this field, and the studies of Batt (2003), Kwon
(e.g. Tikkanen and Alajutsijärvi, 2002; Wilson, 1995), and Suh (2004) Rao et al. (2006) and Cambra and Polo-
affecting their long-term orientation. Abdul-Muhmin Redondo (2007) have recently extended their work. Sako
(2005), following prior research conducted by Ganesan (1992) recognizes different profiles and explains that trust can
(1994), offers an illustrative definition of satisfaction: “a arise as:
positive affective state resulting from an appraisal of all
.
contractual trust – based on the fulfillment of promises and
acts as agreed;
aspects of a firm’s working relationships with another firm” .
competence trust – based on the belief that the other party
(p. 620). Suppliers must first meet expected performance
will be capable of doing what it promises; and
standards (Rossoumme, 2003; Schellhase et al., 2000; .
goodwill – as the shared belief that the other is deeply
Wilson, 1995), especially those related to quality and
compromised to promoting a good development of the
delivery dates (Tellefsen, 2002), though they must also
relationship.
assess other attributes not directly related to the product
(e.g. communication and cooperation). A positive global The papers of Cambra and Polo-Redondo (2007), Rao et al.
assessment, providing there is one, will very likely orient the (2006) and Bennett and Gabriel (2001) are focused on
relationship toward an enduring horizon. considering explicit differences in the profile of the two types
396
Post-satisfaction factors affecting supply relationships Journal of Business & Industrial Marketing
Jesús J. Cambra-Fierro and Yolanda Polo-Redondo Volume 26 · Number 6 · 2011 · 395 –406
of trust: initially, trust is based on the supplier’s image and of the natural evolution of relationships. Prior to working with
reputation but, when the relationship evolves, trust is based a supplier, the customer weighs several alternatives and selects
on the verification of the supplier’s real capacity, the one that he thinks is the most suitable (Cambra and Polo-
communication and cooperation. This is in line with Redondo, 2007). At this moment, the customer does not
comments made by Bennett and Gabriel (2001): “trust in a know the real capacity of the supplier and, thus, he has to take
partner is likely to build up only gradually over time, normally aspects such as identity, image, and reputation as references
via incremental stages . . . experience causes trust through the (Kwon and Suh, 2004). The customer will now opt for the
provision of a series of episode values . . . thus the longer the supplier with the highest level of trust, intuited but not
period of exposure to a satisfactory partner, the higher level – directly proven. Nevertheless, once the supplier has first
and probably different profile – of trust” (p. 425). contacted the customer and has shown his real capacity, the
RM literature notes that commitment is “an integral part of customer can base his opinion on his own experience,
any long-term business relationship . . . as a kind of lasting confirming or rejecting the initial image of the supplier. In this
intention to build and maintain a long-term relationship” case, when considering further situations, the customer will
(Walter et al., 2003, p. 160). RM considers commitment “an also base his decisions on trust, although trust is now based
exchange party’s belief that a relationship is important enough on experience. This is in line with the work of Rao et al.
to warrant maximum efforts at maintaining” (Morgan and (2006), Batt (2003) and Mackenzie and Hardy (1996), who
Hunt, 1994), an “enduring desire by an exchange party to suggest that an increase in mutual knowledge and the
maintain a relationship to which it attaches value” (Moorman revelation of the supplier’s capacity will generate a positive
et al., 1992), or an “exchange party’s intention to continue in outcome and a growth of trust in the supplier’s activity.
a relationship” (Young and Denize, 1995; Dwyer et al., 1987). Moreover, cooperation and communication (e.g. Cambra
Downloaded by La Trobe University At 02:02 12 February 2016 (PT)
Therefore, for us, commitment will express an attitude and and Polo-Redondo, 2007; Kwon and Suh, 2004; Mohr et al.,
behavior (Andaleeb, 1996) linked with the relational 1996) will also influence the climate of relational trust. In this
approach of inter-firm relationships. case, rather than increasing mutual knowledge, the aim of
Anderson and Weitz (1992) defined long-term orientation communication will be to inject fluency into the relationship,
(LTO) as a firm’s “willingness to make short-term sacrifices to bring the agents’ desires and needs together and facilitate
to realize long-term benefits from the relationship”. Ganesan the resolution of potential conflicts (Wilson, 1995; Dwyer
(1994, p. 3), considered by most researchers as a seminal et al., 1987). Regarding the influence of cooperation, the
work, states that LTO is “focused on achieving future goals customer is very likely to be more willing to collaborate with
and is concerned with both current and future outcomes . . . the supplier during the later stages, since the latter’s capacity
LTO goes beyond mere probability to capture both the desire has been proven. One may anticipate that the outcome of this
and utility of a firm toward having a long-term relationship . . . cooperation is beneficial for a future relationship and, thus,
and it seems to be a better indicator of closeness in affects the future level of trust in the supplier. Therefore:
relationships”. Therefore, we can assume that, although
H1. Perceived satisfaction has a positive influence on the
both concepts (commitment and LTO) are very close to each
industrial buyer’s level of trust in its suppliers.
other, they are independent constructs. Ivens (2005) clearly H2. Firm-supplier cooperation has a positive influence on
differentiates between commitment – “commitment is the industrial buyer’s level of trust in its suppliers.
generally interpreted as an attitude” (p. 569) – and LTO – H3. Firm-supplier communication has a positive influence
“an expression of how (partners) value the relationship” on the industrial buyer’s level of trust in its suppliers.
(p. 570), and he includes them as independent constructs in
his conceptual model. In sum, commitment expresses the
attitude and behavior prior to LTO. 3.2 Perceived relationship satisfaction and trust as a
basis of relational commitment
The literature on RM establishes that perceived satisfaction
3. Hypotheses for empirical research
and trust are two fundamental variables that have a bearing on
Taking the comments above as a reference, we can argue that the agents’ degree of commitment to the relationship (e.g. Jap
there are various factors that, directly or indirectly, affect the and Ganesan, 2000; Morgan and Hunt, 1994).
long-term orientation of the supply function. From the The customer’s satisfaction implies that the supplier has
perspective of RM, satisfaction and commitment to the met his expectations, either with respect to the elements
relationship are key factors that determine the long-term directly related to the product’s performance or to other
orientation of relationships (Polo-Redondo and Cambra, elements inherent in the relationship (e.g. delivery terms,
2007; Abdul-Muhmin, 2002; Abdul-Muhmin, 2005). The guarantee, and price). If the real value perceived by the firm is
literature also highlights the influence of communication, positive, maintaining the relationship may be useful to the
cooperation and trust on the long-term orientation of firm- firm. Satisfied partners invest more resources into the
supplier relationships. As Figure 1 shows, the research relationships (Ghosh et al., 2004), that is, they are more
proposes a series of hypotheses that explain the relational committed (Tikkanen and Alajutsijärvi, 2002). In addition,
approach to the SC from the buyers’ perspective. once the supplier’s capacity has been proved, the customer
will trust him to meet further expectations and will be highly
3.1 Trust as a result of perceived satisfaction, committed to the relationship (Rao et al., 2006; Kwon and
cooperation, and communication Suh, 2004; Ganesan, 1994). Similarly, Liu et al. (2008),
Ryu et al. (2007) and Ganesan (1994) consider satisfaction as Bennett and Gabriel (2001), Jap and Ganesan (2000) and
an antecedent of trust. This proposition is acceptable because Dwyer et al. (1987) verified that the degree of fulfillment of
397
Post-satisfaction factors affecting supply relationships Journal of Business & Industrial Marketing
Jesús J. Cambra-Fierro and Yolanda Polo-Redondo Volume 26 · Number 6 · 2011 · 395 –406
398
Post-satisfaction factors affecting supply relationships Journal of Business & Industrial Marketing
Jesús J. Cambra-Fierro and Yolanda Polo-Redondo Volume 26 · Number 6 · 2011 · 395 –406
4.3 Validation of measurement scales Table III Analysis of discriminant validity; x2difference test
We measured the proposed scales following the
Pairs Difference test of x2 (gl. 5 1) p-value
methodological proposals of Churchill (1979) and Anderson
and Gerbing (1988), evaluating their psychometric F1, F2 123.66 0.00
properties: dimensionality, validity, and reliability. F1, F3 223.54 0.00
We first verified dimensionality. Then, we carried out a F1, F4 103.34 0.00
confirmatory factor analysis using structural equations F1, F5 99.93 0.00
(Anderson and Gerbing, 1988), EQS (Bentler and Wu, F1, F6 276.36 0.00
1995) and the maximum likelihood method. The results F2, F3 175.87 0.00
obtained were highly satisfactory, with a good fit between the F2, F4 93.91 0.00
measurement of the model and the data: (x2 Sat: ¼ 58:347 F2, F5 77.83 0.00
(p , 0:01); RMR ¼ 0:45; RMSEA ¼ 0:032; NFI ¼ 0:957; F2, F6 117.97 0.00
NNFI ¼ 0:962; AGFI ¼ 0:940; CFI ¼ 0:961; IFI ¼ 0:958; F3, F4 83.37 0.00
Normedx2 ¼ 1:51). Finally, following the recommendations F3, F5 111.35 0.00
of Baumgartner and Homburg (1996) and of Hulland et al. F3, F6 163.22 0.00
(1996), we included the variance-covariance matrix for the F4, F5 65.18 0.00
sample under study (Appendix 2 (Table AI)). F4, F6 107.25 0.00
We evaluated the reliability of the measurement scales using F5, F6 91.74 0.00
Cronbach Alpha (. 0.8) (Nunnally and Bernstein, 1994) and
Composite Reliability Index (.0.7) (Hair et al., 1999). As we
show in Appendix 1, the scales are reliable for all the proposed
5. Results
statistics since they exceed the recommended optimum
values. After validating the measurement scales, we analyzed the
The estimated coefficients of each indicator are significant, significance of the hypotheses. Table IV shows the results
which proves the convergent validity of each factor. In order obtained. For all the cases, the hypotheses are significant to a
to analyze discriminant validity, we calculated the x2 confidence level of 95 percent, with standard deviations
differences test (Hair et al., 1999), which verifies whether ranging from 0.37 to 0.63.
the proposed model is significantly different from other The data reveal that, as established in the model, as the
alternative models in which the correlation of each pair of perceived satisfaction of the relationship increases, so does the
dimensions is 1. As Table III shows, data in this test prove the trust in the supplier and, therefore, H1 is confirmed
discriminant validity of the scales. (lest ¼ 0:60, p , 0:01). The level of trust also increases
399
Post-satisfaction factors affecting supply relationships Journal of Business & Industrial Marketing
Jesús J. Cambra-Fierro and Yolanda Polo-Redondo Volume 26 · Number 6 · 2011 · 395 –406
when cooperation exists (lest ¼ 0:37, p , 0:05), and the same the success of SCM in particular and firms in general (Rao
occurs when information is shared (lest ¼ 0:51, p , 0:01). et al., 2006). By creating, developing and maintaining positive
Therefore, H2 and H3 are confirmed. relationships with adequate suppliers, firms can build up
We also confirm that perceived satisfaction is a direct important competitive advantage and offer their customers
antecedent of the level of commitment the buyer is willing to value in such a way that they minimize the risk and
make to the supplier (H4) (lest ¼ 0:49, p , 0:01). Similarly, uncertainty associated with supply management (Zsidisin
Downloaded by La Trobe University At 02:02 12 February 2016 (PT)
as proposed in H5, our data confirm that the customer’s and Ellram, 2003) and they can allocate more resources to
commitment to the relationship grows as its level of trust other activities (Cambra and Polo-Redondo, 2007).
towards its suppliers (lest ¼ 0:57, p , 0:01) increases. Our research is centered on LTO and seeks to contribute to
Finally, when the buyer is satisfied and decides to make a the literature by analyzing, from the RM perspective, the
commitment to the relationship established with its suppliers, factors that determine the long-term orientation of supply
the relationship is likely to have a long-term orientation, thus relationships. The data of our study suggest that satisfaction
verifying H6 (lest ¼ 0:63, p , 0:01) and H7 (lest ¼ 0:59, and commitment can be considered two key factors that
p , 0:01). determine the lasting approach of firm-supplier relationships.
We analyzed the data referring to R2 and found that the Satisfaction directly affects this temporal orientation and also
structural equations related to the long-term orientation of affects trust and commitment. Furthermore, we have verified
the supply function indicate that almost 70 per cent of its that communication and cooperation may also influence trust.
variance (R2 ¼ 0:67) can be explained by the effect of Our research offers an alternative relational model for
cooperation, communication, satisfaction, trust and analyzing SC, complementing the framework proposed by
commitment. This supports the explanatory capacity of our Cambra and Polo-Redondo (2008). Both academics and
model. practitioners may, therefore, consider two different stages, the
Finally, with respect to the fit of the model, all the “pre-satisfaction” and “post-satisfaction” phases, with
indicators are within the optimum levels of acceptance: perceived buyer satisfaction being the reference for the
RMR ¼ 0:46; RMSEA ¼ 0:041; NFI ¼ 0:949; division.
NNFI ¼ 0:961; AGFI ¼ 0:938; CFI ¼ 0:950; IFI ¼ 0:952; RM literature has identified several elements that determine
Normed x2 ¼ 1.57. the success of relational approaches and discussed their
implications for both theory and management (e.g. Schurr,
6. Discussion 2007; Hunt et al., 2006). The following discussion is based on
our results but, in some cases, complemented with the
As Ryu et al. (2007) point out, inter-firm long-term framework developed by Cambra and Polo-Redondo (2008).
orientation has been increasingly recognized as an important First, satisfaction seems to be one of the key elements that
factor driving firm competitiveness. Leonidou (2004) determines continuity in inter-firm relationships. Satisfaction
recognizes strategic advantages for firms involved in long- is a construct in which one must consider both objective and
term relationships: subjective elements. Firms would like to be involved in
. sellers can obtain repeat purchases from their customers relationships that are positive for achieving their
and exploit new business opportunities; they can also entrepreneurial objectives. If relationships are found to be
reduce the possibility of customers switching to other useful, in line with comments made by Abdul-Muhmin
supplying firms; they can get useful market information
(2005), the propensity to terminate relationships would
from their customers and/or they can use customer ideas
decrease. Consequently, suppliers need to satisfy their
to design innovative products; and
customers by meeting their expectations in terms of quality,
.
buyers can secure an uninterrupted flow of inputs; they
delivery time, guarantee, or price (Tellefsen, 2002). But, in
can use suppliers’ expertise and resources; they can reduce
addition, according to RM literature, there are some
costs and achieve better purchasing prices; they can
collaboration tools (e.g. joint research or communication
exploit technological development, reduce wastage and
projects, mutual problem solving and advice) and
improve efficiency.
communication tasks (e.g. personal and interpersonal
Therefore, the long-term approach of supply relationships has channels, ITs. . .) that reinforce the level of perceived
become a strategic and tactical factor and it is fundamental for satisfaction. This is because buyers formulate summary
400
Post-satisfaction factors affecting supply relationships Journal of Business & Industrial Marketing
Jesús J. Cambra-Fierro and Yolanda Polo-Redondo Volume 26 · Number 6 · 2011 · 395 –406
satisfaction judgments, objective and subjective, about the 2 Making promises that firms are not certain to keep can be
overall experience (Rossoumme, 2003; Walter and Ritter, extremely dangerous. Promises must be based on
2003). capacities.
Second, we have to point out that, as the relationship
Failure to manage (1) and (2) will have negative effects on the
evolves and mutual knowledge increases, the content of
relational approach. The level of perceived future satisfaction,
communication has to be different. In the initial stages of the
trust and commitment could decrease and have a negative
relationship, communication has to foster knowledge and
influence on the relationship’s continuity. This negative effect
bring needs together. But, once the customer has decided to
might also affect the supplier’s image, reputation and
maintain the relationship, efforts should be aimed at making
credibility for further commercial communication actions.
the relationship fluent and facilitating the resolution of
Third, because results suggest positive and significant
potential conflicts. This idea agrees with the
effects between cooperation-trust and communication-trust,
recommendations of Wilson (1995) and Dwyer et al.
we also recommend fluent, useful and timely communication,
(1987), among other authors. After thinking about best
practices, we recommend the following: together with collaborative actions. These actions will affect
.
Because mutual knowledge can almost be taken for the level of trust in the future.Fourth, we also recommend
granted, the consolidation of a common language and managing cooperation. Although previous research
adequate information channels will be necessary. This will (e.g. Morgan and Hunt, 1994) defends links between trust
increase fluency. and cooperation, in our model, the opposite connection
.
Effective communication is the goal: ITs (e.g. EDI, ERP, (cooperation-trust) has been demonstrated. We agree with
MRP) help to facilitate contacts and to reduce time prior RM research, but we also defend this new link. In early
Downloaded by La Trobe University At 02:02 12 February 2016 (PT)
(e.g. Tong et al., 2008; Rao et al., 2006). phases, cooperation also contributes to increasing satisfaction.
But, during maturity stages, firms have experience about the
But we need to keep in mind that not all firms have enough/ outcomes from preceding collaborations. If the experience
adequate resources. Thinking about the SME context, firms was positive, additional collaborative actions are more
involved in the DSC do not always have enough human, probable, which further increases trust. Again, we are not
economic or technological resources to implement referring to (although they are possible) technology-intensive
technology-intensive communication systems. We can collaborative projects. The comments we made about the
summarize this phenomenon by recommending that amount and profile of economic and human resources are still
technology and resources should set the limits but adequate: resources set the limits but management gets the
management should get the results: we suggest a mix results. Developing common research projects or helping in
between technology, creativity, comprehension and efficiency. problem-solving are good examples of collaborative actions.
Third, one of the most important contributions of the Fifth, commitment will increase as firms perceive an
present research concerns the influence of trust. The profile of adequate level of satisfaction. RM literature, however, shows
the factors that determine the evolution of relationships will some additional strategies to create commitment:
change according to the stage we consider (Grönroos, 2000; . Written contracts, although they can indicate a lack of
Wilson, 1995). However, when analyzing the concept of the trust, force commitment.
trust placed by a customer in its suppliers, a considerable .
Investing in specific assets, dedicating time and effort to
number of studies implicitly consider the evolution of the improving the relationships’ outcomes and/or
concept, but few explicitly discuss its implications. The works participating in joint projects are tools that demonstrate
of Andaleeb (1996), Sako (1992), Ganesan (1994), Geyskens the firm’s interest and may have a positive repercussion on
et al. (1999), and Mackenzie and Hardy (1996) laid the the level of the partners’ commitment to the relationship.
foundations for this discussion and, more recently, the works
of Batt (2003), Cambra and Polo-Redondo (2007) and Kwon In any case, these signals have to be perceived by the
and Suh (2004) have made complementary contributions. customer, which again increases the value of communication.
Taking these papers as a reference, we propose that trust is Sixth, the strategic management of DSC recommends
initially based on the supplier’s image and reputation – establishing, maintaining and enhancing relationships with all
similar to Sako’s (1992) conceptualization of competence the partners shaping the complete chain from the suppliers of
trust – and it evolves based on the verification of the raw materials to the end consumer (e.g. Parente et al., 2008).
supplier’s real capacity and behavior. That is, knowledge There are many types of partnerships including alliances,
related to the capacity and behavior of partnerships increases joint-ventures, licenses, cooperative marketing and research
as more contacts take place between partnerships. Therefore, agreements. When agents perceive positive outcomes from
contacts and knowledge may allow what Sako (1992) relationships, their interest in maintaining and developing
conceptualizes as goodwill. The ideas above are in line with these relationships will increase. For extreme levels of
the evolutionary approach for trust proposed by Bennett and partnership, Hoover et al. (2001) propose the “co-
Gabriel (2001). Once the customer has perceived the evolution” concept: the partners have common goals and
supplier’s performance, the image of the supplier is likely to evolve jointly. However, firms possessing strong relationships
be reinforced. Therefore, thinking about best practices related with their partners may sometimes be isolated from the
to trust, we recommend the following: market and increase their dependence on these relationships.
1 Obtaining a balance between the generation of high Therefore, while recognizing the strategic importance of
expectations to persuade a customer and the real capacity LTO, the ability to shift business between firms (e.g. several
to satisfy them is necessary. suppliers and customers) may be also important.
401
Post-satisfaction factors affecting supply relationships Journal of Business & Industrial Marketing
Jesús J. Cambra-Fierro and Yolanda Polo-Redondo Volume 26 · Number 6 · 2011 · 395 –406
present study only intended to complete their relational context, where LTO is considered as a direct antecedent of
framework. Second, our data are based on the buyer’s trust and an indirect antecedent of satisfaction. We still call
perspective. While one can easily adapt our hypothesis and for works that give additional insights into this debate.
measurement scales to the seller’s perspective, readers should Researchers could also consider shared values (Morgan and
consider that the conclusions that arise from a seller’s point of Hunt, 1994) as a relational construct. Therefore, it may be
view could be slightly different. When one considers that most interesting to consider including this element in further
companies are customers as well as suppliers within a supply models. All the above proposals will increase the explanatory
chain (Rao et al., 2006), this research will interest all the power of the model.
agents involved in a demand-supply chain.
Third, the sample of our study takes Spanish SMEs as a References
reference. It represents more than 90 percent of the Spanish
entrepreneurial context, but it does not include the biggest Abdul-Muhmin, A. (2002), “Effects of suppliers’ marketing
firms. The possible generalization of conclusions would program variables on industrial buyers’ relationship
require a previous analysis that evaluates the similarities and satisfaction and commitment”, Journal of Business
differences between contexts defined by sizes and cultures. & Industrial Marketing, Vol. 17 No. 7, pp. 637-51.
Fourth, given the characteristics of the firms analyzed here Abdul-Muhmin, A. (2005), “Instrumental and interpersonal
(SMEs), the pre-test suggested modified our initial proposal determinants of relationships satisfaction and commitment
for measurement scales in both vocabulary and length. We in industrial markets”, Journal of Business Research, Vol. 58
decided to include a reduced number of items in some scales No. 5, pp. 619-28.
in order to find a balance between brevity and validity to allow Andaleeb, S. (1996), “An experimental investigation of
us to obtain an adequate response rate. A similar strategy to satisfaction and commitment in marketing channels: the
study the SME context was followed by authors such as role of trust and dependence”, Journal of Retailing, Vol. 72
Abdul-Muhmin (2002). No. 1, pp. 77-93.
Finally, our scales measure the relationship at one point in Anderson, E. and Weitz, B. (1992), “The use of pledges to
time. Although we clearly indicated in the questionnaire that build and sustain commitment in distribution channels”,
the interviewees had to consider “post-satisfaction” Journal of Marketing Research, Vol. 29 No. 1, pp. 18-34.
relationships, developing longitudinal studies would Anderson, J. and Gerbing, D. (1988), “Structural modelling
allow researchers to consider all the dynamic aspects of in practice: a review and recommended two-steps
relationships in the SC. approach”, Psychological Bulletin, Vol. 103 No. 3,
We want to indicate that the limitations are related to some pp. 411-23.
of our proposals for future research. We consider the Batt, P. (2003), “Building trust between growers and market
importance of studying the LTO of supply relationships but agents”, Supply Chain Management: An International
taking also into account potential differences related to size or Journal, Vol. 8 No. 1, pp. 65-78.
to the importance of the inputs. These elements can create Baumgartner, H. and Homburg, C. (1996), “Applications of
unbalanced power-dependence relationships. As Ryu et al. structural equation modelling in marketing and consumer
(2007), Chung et al. (2006) and Ganesan (1994) comment, research: a review”, International Journal of Research in
asymmetric power-dependence situations could affect the Marketing, Vol. 13, pp. 139-61.
long-term orientation of inter-firm relationships. Analyzing Beckman, A. and Robinson, R. (2004), “Supplier partnership
representative case studies while considering both the and the small, high-growth firm: selecting for success”,
supplier’s and the buyer’s perspectives could be a good Journal of Small Business Management, Vol. 42 No. 1,
alternative. pp. 59-77.
402
Post-satisfaction factors affecting supply relationships Journal of Business & Industrial Marketing
Jesús J. Cambra-Fierro and Yolanda Polo-Redondo Volume 26 · Number 6 · 2011 · 395 –406
Bennett, R. and Gabriel, H. (2001), “Reputation, trust and Journal of Business & Industrial Marketing, Vol. 21 No. 2,
commitment: the case of shipping company/seaport pp. 72-87.
relations”, Journal of Business & Industrial Marketing, Instituto Nacional de Estadistica (INE) (2007), available at:
Vol. 16, pp. 424-38. www.ine.es
Bentler, P. and Wu, E. (1995), EQS for Windows. User’s Guide, Ivens, B. (2005), “Flexibility in industrial service
Multivariate Software Inc, California. relationships: the construct, antecedents, and performance
Cambra, J.J. and Polo-Redondo, Y. (2007), “Assessment and outcomes”, Industrial Marketing Management, Vol. 34 No. 6,
reassessment of supply relationships: a case study in the pp. 566-76.
Spanish wine industry”, International Journal of Jap, S. and Ganesan, S. (2000), “Control mechanisms and
Entrepreneurial Behavior and Research, Vol. 13 No. 2, the relationship life cycle: implications for safeguarding
pp. 82-106. specific investments and developing commitment”, Journal
Cambra, J.J. and Polo-Redondo, Y. (2008), “Creating of Marketing Research, Vol. 37 No. 2, pp. 227-45.
satisfaction in the demand-supply chain: the buyers’ Kwon, I. and Suh, T. (2004), “Factors affecting the level of
perspective”, Supply Chain Management: An International trust and commitment in supply chain relationships”, The
Journal, Vol. 13 No. 3, pp. 211-24. Journal of Supply Chain Management, Vol. 40 No. 2,
Cannon, J. and Perrault, W. (1999), “Buyer-seller pp. 4-14.
relationships in business markets”, Journal of Marketing Leonidou, L. (2004), “Industrial manufacturer-customer
Research, Vol. 36 No. 4, pp. 439-60. relationships: the discriminant role of the buying
Chung, J., Sternquist, B. and Chen, Z. (2006), “Retailer- situation”, Industrial Marketing Management, Vol. 33 No. 8,
Downloaded by La Trobe University At 02:02 12 February 2016 (PT)
403
Post-satisfaction factors affecting supply relationships Journal of Business & Industrial Marketing
Jesús J. Cambra-Fierro and Yolanda Polo-Redondo Volume 26 · Number 6 · 2011 · 395 –406
Management: An International Journal, Vol. 8 No. 1, Young, L. and Denize, L. (1995), “A concept of
pp. 79-86. commitment: alternative views of relational continuity in
Rao, M., Phillips, Ch. and Johnson, M. (2006), “Assessing business service relationships”, Journal of Business
supply chain management success factors: a case study”, & Industrial Marketing, Vol. 10 No. 5, pp. 22-37.
Supply Chain Management: An International Journal, Vol. 11 Zsidisin, G. and Ellram, L. (2003), “An agency theory
No. 2, pp. 179-92. investigation of supply risk management”, The Journal of
Rauyruen, P. and Miller, K. (2007), “Relationship quality as a Supply Chain Management, Vol. 39 No. 3, pp. 15-27.
predictor of B2B customer royalty”, Journal of Business
Research, Vol. 60 No. 1, pp. 21-31.
Rossoumme, J. (2003), “Customer satisfaction measurement Appendix 1. Measurement scales (sources)
in a business-to-business context: a conceptual framework”,
(Indicate the degree of agreement or disagreement with each
Journal of Business & Industrial Marketing, Vol. 18 Nos 2/3,
of the following statements; 7 ¼ completely agree,
pp. 179-95. 1 ¼ completely disagree).
Ryu, S., Park, J. and Min, S. (2007), “Factors determining 1 Cooperation (adapted from Cannon and Perrault,
long-term orientation in interfirm relationships”, Journal of 1999); Cronbach a¼ 0:90; CRI ¼ 0:84.
Business Research, Vol. 62 No. 12, pp. 1225-33. . COOP1. This supplier and I collaborate in certain
Sako, M. (1992), Prices, Quality and Trust: Interfirm Relations aspects
in Britain and Japan, CUP, Cambridge. .
COOP2. Potential problems are solved cooperatively
Schellhase, R., Hardock, P. and Ohlwein, M. (2000), 2 Communication (adapted from Mohr et al., 1996; Kwon
Downloaded by La Trobe University At 02:02 12 February 2016 (PT)
“Customer satisfaction in business-to-business marketing: and Suh, 2004); Cronbach a¼ 0:89; CRI ¼ 0:81.
the case of retail organizations and their suppliers”, Journal .
INF1. My supplier and I share information
of Business & Industrial Marketing, Vol. 15 Nos 2/3, .
INF2. Both parties are willing to keep each other
pp. 106-21. informed about changes that may affect us both
Schurr, P. (2007), “Buyer-seller relationship development .
INF3. Exchange of information is frequent and
episodes: theories and methods”, Journal of Business informal
& Industrial Marketing, Vol. 22 No. 3, pp. 161-70. 3 Perceived satisfaction (adapted from Walter et al., 2003);
Sila, I., Ebrahimpour, M. and Birkholz, C. (2006), “Quality Cronbach a¼ 0:89; CRI ¼ 0:83.
in supply chains: an empirical analysis”, Supply Chain .
S1. The relationship with this supplier is positive
Management: An International Journal, Vol. 11 No. 6, .
S2. Compared with the ideal relationship, we are
pp. 491-502. satisfied with this relationship
Tellefsen, T. (2002), “Commitment in business-to-business 4 Trust (adapted from Batt, 2003; Kwon and Suh, 2004);
relationships: the role of organizational and personal Cronbach a¼ 0:85; CRI ¼ 0:80:
needs”, Industrial Marketing Management, Vol. 31 No. 8,
.
CNP1. The supplier always keeps his promises
pp. 645-52.
.
CNP2. The supplier has always been sincere with my
Tikkanen, H. and Alajutsijärvi, K. (2002), “Customer firm
satisfaction in industrial markets: opening up in the
.
CNP3. I can trust this supplier when I share relevant
information with him
concept”, Journal of Business & Industrial Marketing,
5 Commitment (adapted from Anderson and Weitz, 1992;
Vol. 17 No. 1, pp. 25-42.
Morgan and Hunt, 1994; Jap and Ganesan, 2000;
Tong, P., Johnson, J., Umesh, U. and Lee, R. (2008),
Walter et al., 2003) Cronbach a¼ 0:88; CRI ¼ 0:81.
“A typology of interfirm relationships: the role of .
COMP1. I am willing to invest time and resources in
information technology and reciprocity”, Journal of
this supplier.
Business & Industrial Marketing, Vol. 23 No. 3, pp. 178-92. .
COMP2. I will probably maintain or increase the
Walter, A. and Ritter, T. (2003), “The influence of volume of business with this supplier.
adaptations, trust and commitment on value-creating .
COMP3. I am willing to meet the terms of the
functions of customer relationships”, Journal of Business agreement with this supplier.
& Industrial Marketing, Vol. 18 Nos 4/5, pp. 353-65. 6 Long-term orientation (adapted from Ganesan, 1994);
Walter, A., Müller, T., Helfert, G. and Ritter, H. (2003), Cronbach a¼ 0:93; CRI ¼ 0:89.
“Functions of industrial supplier relationships and their .
OR1. I believe the relationship will be beneficial for
impact on relationship quality”, Industrial Marketing my firm in the long term.
Management, Vol. 32 No. 2, pp. 159-69. .
OR2. For my firm, it is important to maintain this
Wilson, D. (1995), “An integrated model of buyer-seller relationship in the future.
relationships”, Journal of the Academy of Marketing Science, .
OR3. I focus on the long-term objectives of this
Vol. 23 No. 4, pp. 335-45. relationship.
404
Post-satisfaction factors affecting supply relationships Journal of Business & Industrial Marketing
Jesús J. Cambra-Fierro and Yolanda Polo-Redondo Volume 26 · Number 6 · 2011 · 395 –406
Appendix 2
OR2 0.35 0.36 0.49 0.49 0.72 0.42 0.47 0.41 0.38 0.48 0.46 0.44 0.51 0.99 1.53
OR3 0.30 0.42 0.46 0.44 0.61 0.39 0.36 0.35 0.41 0.48 0.43 0.41 0.55 0.92 1.02 1.37
N 233 233 233 233 233 233 233 233 233 233 233 233 233 233 233 233
405
Post-satisfaction factors affecting supply relationships Journal of Business & Industrial Marketing
Jesús J. Cambra-Fierro and Yolanda Polo-Redondo Volume 26 · Number 6 · 2011 · 395 –406
factors affecting the long-term orientation of supply customer has decided to maintain the relationship, efforts
relationships” data suggests that satisfaction and should be aimed at making the relationship fluent and
commitment can be considered two key factors that facilitating the resolution of potential conflicts.
determine the lasting approach of firm-supplier When analyzing the concept of the trust placed by a
relationships. Satisfaction directly affects this temporal customer in its suppliers, a considerable number of studies
orientation and also affects trust and commitment. implicitly consider the evolution of the concept, but few
Furthermore, they verify that communication and explicitly discuss its implications. The present study proposes
cooperation may also influence trust. The research offers an that trust is initially based on the supplier’s image and
alternative relational model for analyzing SC. Both academics
reputation and it evolves based on the verification of the
and practitioners may, therefore, consider two different
supplier’s real capacity and behavior. That is, knowledge
stages, the “pre-satisfaction” and “post-satisfaction” phases,
related to the capacity and behavior of partnerships increases
with perceived buyer satisfaction being the reference for the
division. The study confirms that satisfaction and as more contacts take place between partnerships.
commitment, along with cooperation, communication and With regard to best practices related to trust, the following
trust, significantly help to determine the relational approach is recommended:
of these inter-firm relationships. (1) Obtaining a balance between the generation of high
Satisfaction seems to be one of the key elements that expectations to persuade a customer and the real
determine continuity in inter-firm relationships. Firms like to capacity to satisfy them is necessary.
be involved in relationships that are positive for achieving (2) Making promises that firms are not certain to keep can
their entrepreneurial objectives. If relationships are found to be extremely dangerous. Promises must be based on
Downloaded by La Trobe University At 02:02 12 February 2016 (PT)
406
This article has been cited by:
1. Jesús Cambra-Fierro, Iguácel Melero-Polo, F. Javier Sese. 2015. Can complaint-handling efforts promote customer engagement?.
Service Business . [CrossRef]
2. Chih-Cheng Volvic Chen, Chih-Jou Chen, Ming-Ji James Lin. 2015. The impact of customer participation: the employee’s
perspective. Journal of Business & Industrial Marketing 30:5, 486-497. [Abstract] [Full Text] [PDF]
3. I. M. Sukresna. 2015. Marketing Channel Connectivities within the Indonesian Manufacturing Sector. Journal of Economics,
Business and Management 3. . [CrossRef]
4. M. Abu Saleh, M. Yunus Ali, Syed Saad Andaleeb. 2014. Explaining industrial importers' commitment from an emerging market
perspective: theoretical and managerial insights. Journal of Business & Industrial Marketing 29:1, 45-62. [Abstract] [Full Text]
[PDF]
5. Jiyoung Hwang, Jae-Eun Chung, Byungho Jin. 2013. Culture matters. Asia Pacific Journal of Marketing and Logistics 25:5,
721-744. [Abstract] [Full Text] [PDF]
6. Joanne Meehan, Gillian H. Wright. 2013. Power priorities in buyer–seller relationships: A comparative analysis. Industrial
Marketing Management 42, 1245-1254. [CrossRef]
Downloaded by La Trobe University At 02:02 12 February 2016 (PT)