Title: An investigation into internal structure of relationship quality
Authors: Muhammad Zafar Yaqub; Saud Mahmood Mandurah
Addresses: Department of Business Administration, Faculty of Economics and Administration, King Abdulaziz University, Jeddah, KSA ' Department of Business Administration, Faculty of Economics and Administration, King Abdulaziz University, Jeddah, KSA
Abstract: There could be witnessed an increasing tendency, in recent research, of using relationship quality as an all-inclusive/higher order construct that may lead to the loss of certain useful information. The paper highlights the need and importance for research to take into consideration the internal structure of relationship quality construct. With a theory-building objective, variance-based structural equation modelling (using PLS-logic) has been performed over a dataset of 284 dyadic supplier-buyer relationships. The results provide useful insights into the dynamics of downstream relationships. First, despite there has been some empirical evidence for a sequential link among three determinants of relationship quality, yet, both satisfaction and trust account for little variations in commitment. Second, the competence-based trust (like the integrity-based trust) largely emerges from higher social satisfaction instead of the economic satisfaction. Third, the social rewards matter more to the exchange partners than the economic rewards in fostering rationality-based commitment.
Keywords: relationship quality; relational exchange; inter-firm trust; inter-organisational commitment; internal structure; structural equation modelling; SEM; PLS; partial least squares; buyer-supplier relationships; integrity-based trust; social rewards; economic rewards.
DOI: 10.1504/IJBPM.2017.084850
International Journal of Business Performance Management, 2017 Vol.18 No.3, pp.253 - 273
Received: 10 Jul 2015
Accepted: 22 Jan 2016
Published online: 01 Jul 2017 *