Title: Trust and commitment-based satisfaction and the impact on specific investments, formalisation and opportunism

Authors: Tore Mysen, Goran Svensson, Tzong-Ru Lee

Addresses: Oslo School of Management, P.O. Box 1195, Sentrum, 0107 Oslo, Norway. ' Oslo School of Management, P.O. Box 1195, Sentrum, 0107 Oslo, Norway. ' Department of Marketing, Social Sciences and Management Building, National Chung Hsing University, 250 Kuo Kuang Rd., 402 Taichung City, Taiwan

Abstract: Researchers claim that trust, commitment and satisfaction constitute core dimensions in relationship quality so important to business success. However, there does not seem to be a consensus on how these core quality constructs inter-relate, nor how they relate to important outcomes. Consequently, this study examines whether satisfaction plays a mediating role between trust and commitment and three important outcomes. Leading executives in Taiwanese manufacturing companies were contacted, and the questionnaires were analysed using confirmatory factor analysis and structural equation modelling. The empirical testing supports the proposed theory that satisfaction is a mediator between trust and commitment, and specific assets, opportunism and formalisation. All five hypotheses in the model were supported. This study makes a contribution to theory outlining as it does a set of constructs, all of which are positioned in an AMP-model (i.e., antecedents, mediating and postcedents) for the benefit of other researchers. The supported model also provides a guideline for managers in the development, management and performance of business relationships.

Keywords: satisfaction; trust; commitment; specific investment; formalisation; opportunism; relationship quality; Taiwan; manufacturing industry; confirmatory factor analysis; structural equation modelling; business relationships.

DOI: 10.1504/IJBEX.2011.042906

International Journal of Business Excellence, 2011 Vol.4 No.6, pp.696 - 714

Available online: 08 Oct 2011 *

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