Achieving high
satisfaction in
supplier-dealer
working relationships
Patrik Jonsson and
Mosad Zineldin
1. Introduction
In most industries it is important to create
successful working relationships between
organizations. Several companies strive for
economies of scale by outsourcing
manufacturing and logistics activities to
vendors, contract manufacturers and third-
party service providers. This results in the
development of supply chains with more
intermediaries and inter-organizational
relationships than before. The more complex
the supply chain, the more critical are the
efficient flows of information and materials
between organizations within the chain.
Therefore, it is important to understand how
to achieve successful working relationships
between the organizations involved. This is
true for partnership as well as for
transactional (arm's length) relationships.
The level of perceived satisfaction is an
important measure of an inter-organizational
relationship (Robicheaux and El-Ansary,
1975; Anderson and Narus, 1984).
Evaluating existing supplier relationships and
determining the major factors that affect
satisfaction could lead a manufacturer or
dealer to question and change the method of
working with suppliers, resulting in an
increase in relationship satisfaction in the long
term. Previous researchers have shown that
there is a positive relationship between
cooperation and satisfaction (e.g. Mallen,
1963; Dwyer, 1980; Schmitz Whipple and
Gentry, 2000). The cooperative efforts of
channel members should result in greater
trust, commitment, channel efficiency and the
achievement of goals, thus leading to higher
levels of satisfaction. However, situations may
exist where the supplier or customer is forced
to cooperate with the other party, despite a
lack of trust and/or commitment. GroÈnhaug
and Gilly (1991), for example, argue that
dissatisfied customers may remain loyal due
to high switching costs. The switching costs
could lead to dissatisfaction, but if the
outcomes of the relationship are good, the
parties may still be satisfied with the
relationship.
Most of the published academic studies in
the services sector have only looked at the link
between service quality and satisfaction (e.g.
Kelly and Davis, 1994; Parasuraman et al.,
1994; Bettencourt, 1997). Few studies have
been conducted to investigate the link
between other behavioral dimensions and the
The authors
Patrik Jonsson is Associate Professor in the Department
of Transportation and Logistics, Chalmers University of
Technology, Gothenburg, Sweden
Mosad Zineldin is Associate Professor in the School of
Management and Economics, VaÈ xjoÈ University, Sweden.
Keywords
Supplier relations, Sweden, Trust
Abstract
Increased attention has been paid to the question of how
to build stable and long-term working relationships
between suppliers and dealers. This study proposes a
conceptual model including behavioral dimensions of
supplier-dealer relationships and presents hypotheses
about how to achieve satisfactory inter-organizational
relationships. Satisfaction is the consequence of working
relationships focused upon in our model. The model is an
empirical assessment of the relationship between
Swedish lumber dealers and their suppliers. T-test
evidence suggests that all proposed critical variables, with
the exception of coercive power, are of significant
importance for achieving a high rate of perceived
relationship satisfaction, regardless of whether the
relationship is characterized by a high or a low level of
trust and commitment. A good reputation, close
relationship and positive relationship benefits are key
variables for the achievement of high satisfaction in a
``high-trust and commitment relationship''. Results also
indicate that it is possible to achieve a high satisfaction
level even when the supplier-dealer trust and
commitment are lacking.
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Research paper
224
Supply Chain Management: An International Journal
Volume 8
.
Number 3
.
2003
.
pp. 224-240
# MCB UP Limited
.
ISSN 1359-8546
DOI 10.1108/13598540310484627