Paper info: Effect of Buying Firmís Satisfaction with Supplying Firm on Buyer-Seller Relationship Sustainability in a B2B Dyad
Effect of Buying Firmís Satisfaction with Supplying Firm on Buyer-Seller Relationship Sustainability in a B2B Dyad
Place of Publication
The paper was published at the 32nd IMP-conference in Cape Town in 2016.
Several researches in the business arena indicate that long term sustainable relationships among trading partners yield improved business performance. The buyer always looks for the cooperation from the supplier especially during the time of crisis. The buyer feels satisfied, when supplier keeps its promises and when buyer observes that the supplier is committed to serve him better. Consequently higher satisfaction level results in long-term relationship sustainability. This research paper examines the effect of buyerís satisfaction with supplier, on the long term relationship sustainability between the buyer and the seller. The relationship sustainability is analyzed in the context of Small and Medium Enterprises (SME) in emerging economy (India). The study is both correlational and causal. This study is conducted in non-contrived settings, where the respondents, primarily the senior managers of purchase division participated in the study in their natural work environment. For this study, the unit of analysis is an organization. The study was undertaken in India with focus on small and medium manufacturing enterprises. The researcher had tried to cover all four zones in India, and response was taken from varied industries to add robustness to the study. Multiple items for each constructs were prepared to allow comprehensive evaluation of the construct. The data for the research was collected by questionnaire method. A uniform, five point response pattern was followed for measuring the variables. To test the conceptual model and the hypotheses, data were collected from 306 purchase managers in SMEs in India. Structural Equation Modeling (SEM) was chosen to analyze the data. The relationships between the constructs are represented by the unstandardized regression coefficients (?) or path coefficient. As hypothesized both cooperation (?=0.317 at p<0.001) and commitment (?=0.310 at p<0.001) from the supplying firm significantly influence the level of satisfaction of the buyer. The results also indicate that the effect of satisfaction is in the hypothesized direction and is significant (?=0.227 at p<0.001). So it was concluded that cooperation and commitment are antecedents of satisfaction which positively influence the long term relationship sustainability