Value, supplier dependence and long-term orientation

Purpose - In organizational markets, many companies tend to reduce the number of providers to focus on establishing relationships with few of them. The purpose of this paper is to analyze the influence of relationship value and dependence of supplier on long-term orientation and customer loyalty in...

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Bibliographic Details
Published in:Industrial management + data systems 2011-06, Vol.111 (5), p.791-808
Main Authors: Gil-Saura, Irene, Ruiz-Molina, Maria-Eugenia, Arteaga-Moreno, Francisco
Format: Article
Language:English
Subjects:
Brand loyalty
Business to business commerce
Consumer behavior
Customer services
Hypotheses
Influence
Portfolio management
Strategic planning
Studies
Suppliers
Travel agencies
Trust
Vendor supplier relations
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Summary:Purpose - In organizational markets, many companies tend to reduce the number of providers to focus on establishing relationships with few of them. The purpose of this paper is to analyze the influence of relationship value and dependence of supplier on long-term orientation and customer loyalty in the setting of relationships between travel agencies and their main providers.Design methodology approach - A partial least square regression is performed to test a proposed model that links several relational variables with outcomes in terms of customer loyalty.Findings - Results provide support for the positive indirect influence of relationship value on long-term orientation, while customer dependence of the main provider does not seem to exert a significant effect. These findings support the importance of value creation for providers in their relationships with their customers.Practical implications - This study allows us to suggest that service companies, such as travel agents, should concentrate on investing in generating benefits for customers through offering value-added services, thus providing evidence that the supplier has no incentives to opportunistic behaviors.Originality value - Although literature has reported the importance of both relational and market conditions for customer-supplier relationships that involve physical distribution of goods and might require important investments in technological solutions to coordinate their relationships, little attention has been paid to service companies.
ISSN:0263-5577
1758-5783
DOI:10.1108/02635571111137313