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Relational Resources in Interorganizational Exchange: The Effects of Trade Equity and Brand Equity

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  • Davis, Donna F.
  • Mentzer, John T.

Abstract

This research examines the effects of two key relational resources in relationships between retailers and national brand manufacturers. We introduce the new concept of trade equity, defined here as the value that accrues to a firm from being known in a trading network as a trustworthy trading partner, to explore the relational resources that are inherent in a firm’s ties with trading partners. We consider brand equity to represent relational resources that are located in a firm’s relational ties with end consumers. Based on data collected in a survey of 797 home appliance retailers, results show that a manufacturer’s trade equity and brand equity have differential effects on the retailer’s dependence and commitment to the manufacturer. Findings show that a manufacturer’s brand equity strengthens the effect of its trade equity on the retailer’s dependence and weakens the effect on the retailer’s commitment.

Suggested Citation

  • Davis, Donna F. & Mentzer, John T., 2008. "Relational Resources in Interorganizational Exchange: The Effects of Trade Equity and Brand Equity," Journal of Retailing, Elsevier, vol. 84(4), pages 435-448.
    • Handle: RePEc:eee:jouret:v:84:y:2008:i:4:p:435-448
    DOI: 10.1016/j.jretai.2008.08.002
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    References listed on IDEAS

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    Cited by:

    1. Rian Beise-Zee, 2022. "Brand equity retention after rebranding: a resource-based perspective," Journal of Brand Management, Palgrave Macmillan, vol. 29(2), pages 208-224, March.
    2. Spralls, Samuel A. & Hunt, Shelby D. & Wilcox, James B., 2011. "Extranet Use and Building Relationship Capital in Interfirm Distribution Networks: The Role of Extranet Capability," Journal of Retailing, Elsevier, vol. 87(1), pages 59-74.
    3. Baldauf, Artur & Cravens, Karen S. & Diamantopoulos, Adamantios & Zeugner-Roth, Katharina Petra, 2009. "The Impact of Product-Country Image and Marketing Efforts on Retailer-Perceived Brand Equity: An Empirical Analysis," Journal of Retailing, Elsevier, vol. 85(4), pages 437-452.
    4. Badrinarayanan, Vishag & Suh, Taewon & Kim, Kyung-Min, 2016. "Brand resonance in franchising relationships: A franchisee-based perspective," Journal of Business Research, Elsevier, vol. 69(10), pages 3943-3950.
    5. Meenakshi Gupta & Jaya Bhasin, 2014. "The Relationship between Intellectual Capital and Brand Equity," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 39(3), pages 329-339, August.
    6. Hofer, Christian & Jin, Henry & Swanson, R. David & Waller, Matthew A. & Williams, Brent D., 2012. "The Impact of Key Retail Accounts on Supplier Performance: A Collaborative Perspective of Resource Dependency Theory," Journal of Retailing, Elsevier, vol. 88(3), pages 412-420.
    7. Dant, Rajiv P. & Brown, James R., 2008. "Bridging the B2C and B2B Research Divide: The Domain of Retailing Literature," Journal of Retailing, Elsevier, vol. 84(4), pages 371-397.
    8. McAlister, Leigh & George, Edward I. & Chien, Yung-Hsin, 2009. "A Basket-mix Model to Identify Cherry-picked Brands," Journal of Retailing, Elsevier, vol. 85(4), pages 425-436.
    9. Ravi K. Jillapalli & Regina Jillapalli, 2014. "Do professors have customer-based brand equity?," Journal of Marketing for Higher Education, Taylor & Francis Journals, vol. 24(1), pages 22-40, June.
    10. Carl Benedikt Frey & Atif Ansar & Sacha Wunsch-Vincent, 2014. "Defining and measuring the 'Market for Brands': Are emerging economies catching up?," WIPO Economic Research Working Papers 21, World Intellectual Property Organization - Economics and Statistics Division.
    11. Brown, James R. & Dant, Rajiv P., 2009. "The Theoretical Domains of Retailing Research: A Retrospective," Journal of Retailing, Elsevier, vol. 85(2), pages 113-128.
    12. Glynn, Mark S., 2012. "Primer in B2B brand-building strategies with a reader practicum," Journal of Business Research, Elsevier, vol. 65(5), pages 666-675.
    13. Seyedghorban, Zahra & Matanda, Margaret Jekanyika & LaPlaca, Peter, 2016. "Advancing theory and knowledge in the business-to-business branding literature," Journal of Business Research, Elsevier, vol. 69(8), pages 2664-2677.
    14. Seevers, Matthew T. & Skinner, Steven J. & Dahlstrom, Robert, 2010. "Performance Implications of a Retail Purchasing Network: The Role of Social Capital," Journal of Retailing, Elsevier, vol. 86(4), pages 310-321.
    15. William E. Gillis & James G. Combs & David J. Ketchen Jr., 2014. "Using Resource–Based Theory to Help Explain Plural Form Franchising," Entrepreneurship Theory and Practice, , vol. 38(3), pages 449-472, May.
    16. Nyadzayo, Munyaradzi W. & Matanda, Margaret J. & Ewing, Michael T., 2015. "The impact of franchisor support, brand commitment, brand citizenship behavior, and franchisee experience on franchisee-perceived brand image," Journal of Business Research, Elsevier, vol. 68(9), pages 1886-1894.
    17. Yingmiao Qian & Mengjun Wang & Yang Zou & Ruoyu Jin & Ruijia Yuan & Qinge Wang, 2019. "Understanding the Double-Level Influence of Guanxi on Construction Innovation in China: The Mediating Role of Interpersonal Knowledge Sharing and the Cross-Level Moderating Role of Inter-Organizationa," Sustainability, MDPI, vol. 11(6), pages 1-19, March.
    18. Londoño, Juan Carlos & Elms, Jonathan & Davies, Keri, 2016. "Conceptualising and measuring consumer-based brand–retailer–channel equity," Journal of Retailing and Consumer Services, Elsevier, vol. 29(C), pages 70-81.
    19. Tolentino-Zondervan, Frazen & Berentsen, Paul & Bush, Simon & Idemne, Joseph & Babaran, Ricardo & Lansink, Alfons Oude, 2016. "Comparison of Private Incentive Mechanisms for Improving Sustainability of Filipino Tuna Fisheries," World Development, Elsevier, vol. 83(C), pages 264-279.
    20. Grewal, Dhruv & Levy, Michael & Kumar, V., 2009. "Customer Experience Management in Retailing: An Organizing Framework," Journal of Retailing, Elsevier, vol. 85(1), pages 1-14.
    21. Kim, Stephen K. & Hibbard, Jonathan D. & Swain, Scott D., 2011. "Commitment in Marketing Channels: Mitigator or Aggravator of the Effects of Destructive Acts?," Journal of Retailing, Elsevier, vol. 87(4), pages 521-539.

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