How Do The Relational Investments Affect Relational Outcomes?

Muhammad Zafar Yaqub and Dildar Hussain
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Muhammad Zafar Yaqub: King Abdulaziz University
Dildar Hussain: ESC Rennes School of Business - ESC [Rennes] - ESC Rennes School of Business

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Abstract: The paper integrates insights from transaction cost economics and relational exchange theory to discuss the efficacy of value-creating relational investments in affecting certain relational outcomes in context of supplier-intermediate buyer dyadic relationships. After performing PLS path modelling on a data set of 284 dyadic relationships, it has been found that value-creating relational investments made by the focal suppliers in their (intermediate) buyers positively affect various facets of satisfaction, trust and commitment (altogether, the relationship quality) of the intermediate buyers. It has been further argued that an enhancement in the relationship quality ultimately translates into an enhancement in performance of the inter - firm relationships.

Date: 2013-02-13
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Published in Journal of Applied Business Research, 2013, 29 (2), pp.433. ⟨10.19030/jabr.v29i2.7648⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04057684

DOI: 10.19030/jabr.v29i2.7648

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