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Factors of determining long-term orientation in interfirm relationships

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  • Ryu, Sungmin
  • Park, Jeong Eun
  • Min, Soonhong

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.

Suggested Citation

  • Ryu, Sungmin & Park, Jeong Eun & Min, Soonhong, 2007. "Factors of determining long-term orientation in interfirm relationships," Journal of Business Research, Elsevier, vol. 60(12), pages 1225-1233, December.
    • Handle: RePEc:eee:jbrese:v:60:y:2007:i:12:p:1225-1233
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    21. Kim, Kyung Kyu & Park, Seung-Hoon & Ryoo, Sung Yul & Park, Sung Kook, 2010. "Inter-organizational cooperation in buyer-supplier relationships: Both perspectives," Journal of Business Research, Elsevier, vol. 63(8), pages 863-869, August.
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