Factors of determining long-term orientation in interfirm relationships

Sungmin Ryu, Jeong Eun Park and Soonhong Min

Journal of Business Research, 2007, vol. 60, issue 12, 1225-1233

Abstract: Marketers have witnessed a paradigm shift in which establishing, maintaining, and forging long-term buyer-seller relationships are considered the core of marketing activities. Accordingly, investigating a long-term orientation (LTO) has become a steady research stream in the marketing literature. Building on this on-going research stream, this study confirms that an essential precursor of a manufacturer's LTO is trust that, in turn, is formed by relational norms and satisfaction with supplier performance. Interestingly, however, the seemingly strong trust-LTO path is moderated by both power asymmetry and environmental uncertainty in buyer-seller relationships. The empirical findings suggest that regardless of emerging relationship marketing where buyer and seller are portrayed as parts of a team, power is still in use to control suppliers. In addition, a manufacturer facing uncertainty is less likely to form LTO toward its supplier for fear of losing flexibility in the time- and quality-based competition.

Keywords: Long-term; orientation; (LTO); Trust; Power; asymmetry; Environmental; uncertainty (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (27)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:60:y:2007:i:12:p:1225-1233

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