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Why does loyalty–cooperation behavior vary over buyer–seller relationship?

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  • Wu, Lei-Yu
  • Chen, Po-Yuan
  • Chen, Kuan-Yang

Abstract

This study argues that a favorable relationship (with trust and commitment) existing between two parties might not necessarily guarantee that subsequent transactions or partnerships can be stabilized. Each party in a relationship is required to conduct specific investments on behalf of the other to prevent discontinued trading or transaction relationships. Hence, this study combines relationship marketing and specific asset investment concepts within the transaction cost theory to investigate the relationship between inter-firm trust and commitment and loyalty and cooperation. By focusing on listed and over-the-counter-traded companies in Taiwan of industries that possess complete supply chains, this study collects 153 effective surveys for empirical analysis. The results show that commitment is more important than trust in a business-to-business (B2B) relationship for increasing the willingness of business customers and/or partners to participate in specific asset investments, thus increasing their loyalty and cooperation in the B2B relationship.

Suggested Citation

  • Wu, Lei-Yu & Chen, Po-Yuan & Chen, Kuan-Yang, 2015. "Why does loyalty–cooperation behavior vary over buyer–seller relationship?," Journal of Business Research, Elsevier, vol. 68(11), pages 2322-2329.
    • Handle: RePEc:eee:jbrese:v:68:y:2015:i:11:p:2322-2329
    DOI: 10.1016/j.jbusres.2015.04.001
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    Cited by:

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    4. Nina Shin & Jung-Sang Yoo & Ik-Whan G. Kwon, 2020. "Fostering Trust and Commitment in Complex Project Networks through Dedicated Investment in Partnership Management," Sustainability, MDPI, vol. 12(24), pages 1-21, December.
    5. Nina Shin & Sangwook Park, 2019. "Evidence-Based Resilience Management for Supply Chain Sustainability: An Interpretive Structural Modelling Approach," Sustainability, MDPI, vol. 11(2), pages 1-23, January.
    6. David Gligor & Christopher Newman & Saim Kashmiri, 2021. "Does your skin color matter in buyer–seller negotiations? The implications of being a Black salesperson," Journal of the Academy of Marketing Science, Springer, vol. 49(5), pages 969-993, September.
    7. Wu, Lei-Yu & Chen, Kuan-Yang & Chen, Po-Yuan & Tung, Pei-Ju, 2016. "Revisiting associations between specific asset investment and loyal and cooperative behavior: A complexity theory perspective," Journal of Business Research, Elsevier, vol. 69(9), pages 3545-3552.
    8. Lyu, Chongchong & Yang, Jianjun & Zhang, Feng & Teo, Thompson S.H. & Mu, Tian, 2020. "How do knowledge characteristics affect firm’s knowledge sharing intention in interfirm cooperation? An empirical study," Journal of Business Research, Elsevier, vol. 115(C), pages 48-60.
    9. Padgett, Daniel & Hopkins, Christopher D. & Williams, Zac, 2020. "Buyer dependence in B2B relationships: The role of supplier investments, commitment form, and trust," Journal of Business Research, Elsevier, vol. 119(C), pages 13-24.
    10. Chen, Kuan-Yang & Huan, Tzung-Cheng, 2022. "Explore how SME family businesses of travel service industry use market knowledge for product innovation," Journal of Business Research, Elsevier, vol. 151(C), pages 519-530.

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