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The Performance Implications of Media Richness in a Business-to-Business Service Environment: Direct Versus Indirect Effects

Author

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  • Shawnee K. Vickery

    (Department of Marketing and Supply Chain Management, The Eli Broad College of Business, Michigan State University, East Lansing, Michigan 48824)

  • Cornelia Droge

    (Department of Marketing and Supply Chain Management, The Eli Broad College of Business, Michigan State University, East Lansing, Michigan 48824)

  • Theodore P. Stank

    (Department of Marketing and Logistics, College of Business Administration, The University of Tennessee, Knoxville, Tennessee 37996)

  • Thomas J. Goldsby

    (Department of Marketing and Logistics, Fisher College of Business, The Ohio State University, Columbus, Ohio 43210)

  • Robert E. Markland

    (Department of Management Science, Moore School of Business, University of South Carolina, Columbia, South Carolina 29208)

Abstract

This research examines media richness by modeling face-to-face, telephone, and electronic media as one construct and testing its performance implications. The context is the third-party logistics industry, in which a customer firm allows a service provider to assume responsibility for all or part of a critical business process. This business-to-business service environment is characterized by high levels of complexity (uncertainty, variability, equivocality) and network interdependence, key contextual attributes that enhance media richness' impact. We found a direct effect of media richness on relational performance and through it, indirect effects on satisfaction and loyalty. Furthermore, we found a direct effect of media richness on loyalty, which suggests that service firms in networked relationships provide loyalty-inducing benefits the genesis of which is not in the satisfaction created by the service itself. While past studies have examined the relationship of richness-related constructs and performance, no significant link was found. Our study is the first to demonstrate that media richness can affect firm performance when businesses interact in a complex environment.

Suggested Citation

  • Shawnee K. Vickery & Cornelia Droge & Theodore P. Stank & Thomas J. Goldsby & Robert E. Markland, 2004. "The Performance Implications of Media Richness in a Business-to-Business Service Environment: Direct Versus Indirect Effects," Management Science, INFORMS, vol. 50(8), pages 1106-1119, August.
    • Handle: RePEc:inm:ormnsc:v:50:y:2004:i:8:p:1106-1119
    DOI: 10.1287/mnsc.1040.0248
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    References listed on IDEAS

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