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Abstract ▼ AI-Helper

This paper explores 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 length, cooperation, and depende...

This paper explores 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 length, cooperation, and dependence), were proposed to affect relationship quality, and indirectly affect relationship strength. In addition, both economic/instrumental dimension (offering characteristics) and affective, relational dimensions (trust and commitment) are also expected to influence relationship strength. In the empirical study which used the textile-dyeing company managers' ratings of local exporters, structural equation modeling presented a well-fit evidence that relationship quality variables and strength are influenced by their proposed antecedents. Specifically, it was found that all characteristics (except relationship length) have direct effect on their relationship quality 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. Together with the minor influence that instrumental dimension (offering characteristics) has on relationship strength, this study suggests that the willingness to remain in business relationship or current proportion of business shared is influenced more by affective assessment like relationship quality than by calculative motivation.

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