• Journal of the Korean Operations Research and Management Science Society
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• v.33 no.4
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• pp.13-30
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• 2008

We explore the determinants of long-term relationship between the buyer and the supplier to help suppliers develope a strategy to build long-term relationship with their buyers. Based upon an extensive literature review, we propose three droops of independent variables which may affect long-term relationship, including (a) environmental factors (product complexity, product importance, source dependence, price sensitivity), (b) relational factors(trust, commitment, satisfaction, intention of expansion), (c) operational performance(quality, delivery, cost capability, technical knowhow). The buyer's actual period of relationship with its main supplier is used as a dependent variable. Using hierarchical multiple regression analysis, we empirically test hypotheses, analysing a sample of 290 manufacturing firms in the U.S. The statistical results indicate that the buyer's source dependence, price sensitivity and the supplier's commitment play a significant role in establishing long-term relationship between the buyer and the supplier. However, the supplier's cost capability and technical knowhow in operational performance negatively affect long-term relationship in contrast with our hypotheses. Due to this controversial result, we divide the sample group Into dual sourcing and multiple sourcing environments and reconduct regression analysis in a post hoc manner. The findings show that the supplier's cost capability and technical knowhow are negatively associated with the length of relationship only in the multiple sourcing environment. The results may confirm that both parties' opportunistic behavior is more salient in the multiple sourcing environment than in the single sourcing environment.

• Journal of Distribution Research
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• v.16 no.3
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• pp.77-104
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• 2011

As business marketers placed greater emphasis on building long-term relationships, trust has assumed a central role in the development of marketing theory(Dwyer, Schurr, and Oh 1987; Mogan and Hung 1994) and practice(Dertouzos, Lester, and Solow 1989). Marketing research on trust primarily focuses on two targets of trust: supplier firms and their salesperson. Trust of firm and trust of salesperson, though related, represent different concepts(Doney and Cannon 1997). Also, the definition of trust proposed by Ganesan(1994) reflects two distinct components: (1) credibility, which is based on the extent to which the buyer believes that the seller has the required expertise to perform the job effectively and reliably and (2) benevolence, which is based on the extent to which the buyer believes that the seller has intentions and motives beneficial to the buyer when new conditions arise, conditions for which a commitment was not made. The existing marketing research focuses on how trust of a firm and its salesperson has a differential effects on loyalty. However, these extant research pays little attention to the moderating effects that explicitly examine how two trust dimensions of salesperson(credibility and benevolence) affects loyalty of firm. The purpose of this study is to provide new insight into boundary conditions(individualism and industry type) that credibility and benevolence influences loyalty.

• Journal of Information Technology Services
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• v.15 no.3
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• pp.127-145
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• 2016

This paper aims to investigate empirically how brand trust can be formed from the customer-brand relationship through a direct use of firm's SNS in B2B context. The brand trust is fundamental elements to understanding of long-term relationship in a B2B context. To achieve the objectives of this study, data collection is through a personally administered questionnaire, and a total of 180 questionnaires was collected from the buyer or supplier who frequently visited partner's firm SNS. Excluding missing data, 120 usable data were analyzed. From the results, first, three SNS motivations (i.e. Information, social and entertainment) has a positive impact on the perceived value of SNS (i.e. perceived usefulness and perceived enjoyment). Second, the perceived usefulness and perceived enjoyment positively affect customer-brand relationship (brand intimacy, brand attachment). Third, the customer-brand relationship is positively related to brand trust. Implications, limitations and future research directions of the study were also discussed. These findings help managers in developing and implementing the relation between SNS use and a customer-brand relationship for long-term relationship in B2B.

• Culinary science and hospitality research
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• v.16 no.3
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• pp.188-204
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• 2010

This research aims at finding relationship marketing factors that have positive effects on customer long-term orientation concerning wine purchasing personnels of domestic dinging companies such as sommeliers and managers. By figuring out the qualities of relationship such as the roles of trust and commitment while long-term orientation is being developed, it also tries to help wine suppliers which have been having a hard time due to domestic market recession and tight competition develop marketing strategies for promotion. A survey of wine purchasing personnels and sommeliers who work for fine dining restaurants, casual dining restaurants and wine bars was conducted for 30 days from Jan. 15, 2010 to Feb. 13, 2010. The statistical packages of SPSS 15.0 statistical package and AMOS 7.0 ver were used to perform frequency analysis, reliability test, confirmatory factor analysis, and path analysis. The result shows that among relationship marketing factors, communication and seller expertise have a positive impact on long-term orientation through trust and affective commitment.

• Journal of Distribution Research
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• v.13 no.4
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• pp.71-95
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• 2008

Transaction between industrial suppliers and their buyers in business markets increasingly take place in the form of long-tenn business relationships. These relationships are governed through formal or informal agreements. Dynamic business markets are also forcing B2B marketers to create flexibility in their firms. However, buyers are bound in their rationality and find it impossible to contemplate all possible future contingencies. The more formal and detailed the contracts they conclude, the likelier it becomes that at least one buyer is going to perceive a need to adjust the initial agreement as environmental events unfold. In this case, the actor relies upon industrial supplier's competence. Our study purpose is to examine the consequences of supplier's competence on the industrial customer-supplier long-tenn relationship. Antecedent variables of supplier competence include R&D, flexibility, brand asset, market sensing, and customer support service. We presented a comprehensive constructive model consisting of components of supplier's competence and the antecedent factors. Research hypotheses were developed and data were gathered from respondents who work in the cosmetics industry. The results discussed here represent a first step towards a better understanding of the role of supplier competence in the B-to-B cosmetics industry. Managerial implications and the limitations of this research were also discussed.

• Journal of Distribution Research
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• v.2 no.1
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• pp.115-141
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• 1997

This study examines the effects of economic and relational dimensions of supplier-distributor relationship on distributors intents to leave. A survey of 121 computer hardware distributors revealed that distributors commitment to the relationship and their transaction-specific investment would decrease directly the level of withdrawal intention. Other relational dimensions such as the procedural and distributive fairness, the morality of aspiration, and economic dimensions such as the transaction-specific investment made by the supplier and distributors expectations fo future performance increase indirectly the level of withdrawal intension via affecting either trust or commitment. The present study also found that perceived uncertainty and relative dependence might moderate the effects the economic and relational dimensions on distributors intents to leave. Relational dimensions, when compared to economic dimensions, tend to have stronger impacts on withdrawal intentions under high levels of uncertainty and relative dependence.

• Journal of Distribution Research
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• v.15 no.2
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• pp.35-70
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• 2010

In this study, we examined distribution channel relationship by using the idea of Cheong, which is a unique feeling an positive role in Korean society. Companies make great efforts to maintain long-term relationship with buyers. Understanding distinctive relationship system of each culture should precede these efforts to bring effective results. So we considered how Cheong, a meaningful factor in Korean distribution channel, affects relationship quality and performance. As a result of research analysis from 272 survey questionnaires of retailers, engaging in Crops Protected Material industry in Korea, supplier's idiosyncratic investment, retailer's Cheong, and dependence of retailers on suppliers have positive effects on relationship quality. Supplier's idiosyncratic investment and cognitive factors have the highest influence and Cheong, an emotional factor, follows. Dependence, a motivational factor has the least influence. We confirmed that retailer's cooperation and long-term orientation are directly influenced by retailer's commitment. Active cooperation of the retailer, a partner of a distribution channel, is regarded as an essential factor for supplier's effective business. Retailer's commitment increased that cooperation. Retailer's trust and commitment also decreased relationship conflicts. The results of this study imply that companies should increase idiosyncratic investment to improve relationship quality. But increasing idiosyncratic investment is limited because it requires monetary investment. Therefore companies need to recognize the importance of Cheong, revealed as a new factor, improving relationship quality and to make the best use of it. In this study, we contributed theoretically by examining the role of Cheong, and introducing its distribution discipline. We also make practical suggestions about supplier's relationship management.

• Journal of Information Technology Applications and Management
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• v.10 no.4
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• pp.15-28
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• 2003

This paper examined the impact of supply chain partnership attributes on the SCM performance. For this, relationship commitment, trust, and collaboration were used as attributes for the supply chain partnership. Also the SCM performance was measured by supply chain integration, customer responsiveness, and supplier performance. Based on the statistical analysis of the sample of Korean corporations, it was found that relationship commitment and trust were shown to be significant factors influencing the collaboration. In addition, the collaborative supply chain partnership has a significant positive influences on the SCM performance. These result, in short, supported the importance of supply chain partnership for the successful SCM.

• Journal of Global Scholars of Marketing Science
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• v.17 no.1
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• pp.51-75
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• 2007

Dongdaemun fashion market has been successfully positioned as a main hub for non-brand fashion product distribution in Korea. One of important competitive advantages of Dongdaemun market often quoted by retail researchers is an efficiently managed network system among supply chain members. This study aimed to examine the importance of buyer-supplier relationship elements and supplier properties from buyers' perspectives (small & very small-sized fashion stores in Dongdaemun market), and to identify the determinants of the relationship length between suppliers and buyers. Survey responses of 233 stores were analyzed using EQS 6.1 for Window and SPSSWIN 10.0. The findings could be summarized as follows: First, fashion stores perceived that right delivery as the most important factor, and geographically closeness, design capability, quality, and lower price followed in order. Second, the characteristics of stores such as location, wholesaling versus retailing focusing, monthly sales, and total business length all affected the perceived importance of buyer-supplier relationship. Third, design capacity, communication, power was identified as determinants of actual relationship length with a supplier, while communication and trust were found to be determinants of future expected relationship length.

• Journal of Distribution Science
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• v.17 no.4
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• pp.59-68
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• 2019

Purpose - The purpose of this study is to examine the differential mediating effects of three dimensions of buyer trust in the influence of supplier characteristics on the relationship performance. In this study, transaction characteristics were classified into competences and assets. The corporate reputation is considered as intangible assets, the customer-linking capability is considered among the competencies and transaction specific asset is selected from tangible assets. This study is also to examine the moderating effect of technical environment uncertainty in the effects of integrity and benevolence on the intention to continue trading. This study aims to provide a guide on which dimension suppliers should manage and how to improve their trust in order to maintain business with companies in technical environment uncertainty. Research design, data, and methodology - The data for the empirical analysis of this study were obtained by interviewing the 274 purchasing managers of Daegu - Gyeongbuk small and medium enterprises. The items used in this survey were partially modified to fit the characteristics of the B2B industry. The reliability and validity of the variables were analyzed using SPSS 18.0 and AMOS 18.0 programs and hypotheses were verified through the structural equation modeling. Results - In this study, reliability was examined by Cronbach 'α test. Composite Reliability and Average Mean Variance extracted value exceeded the baseline values. As a result of hypotheses testing, the hypothesis that the transaction specific asset will improve the benevolence and that benevolence will improve the intention to continue the transaction were rejected and all the other 9 hypotheses were adopted include 2 moderating hypothesis. Conclusions - This study shows which dimension of trust suppliers should appeal to the buyer according to the uncertainty of the technology environment in order to maintain the transaction with the buyer. competence and integrity are important when technology environment uncertainty is low, and competence and benevolence are important when technical environment uncertainty is high. In order to improve competence, corporate reputation and transaction-specific asset are important. To improve integrity, corporate reputation and customer-linking capability are important. In order to improve benevolence, customer-linking capability is important. And various implications were discussed.