• 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 Distribution Research
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• v.16 no.1
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• pp.65-93
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• 2011

This paper aims to explore how relational constructs(supplier's idiosyncratic investment, retailer's dependence, and dyadic communication) impact the buyer's trust across the relationship lifecycle. Companies make great efforts to create trust and maintain long-term relationship with buyers. Buyer and supplier relationships evolve through distinct lifecycles. In each phase, buyers and suppliers exhibit different patterns of behaviour. Also, they have different attitudes toward, and expectation of, one another. In this study, the final outcome investigated is long-term orientation from the buyer's perspective. Data were collected from 296 survey questionnaires of retailers engaging in Crops Protected Material industry in Korea. Exploratory factor analysis and confirmatory factor analysis were used to purify the measurement scales. And structural equation analysis and Chow test were used to test the hypotheses. The result indicates that the effect of retailer's dependence on the trust is greatest. Especially, the effect of dependence is growing as the relationship has developed. Supplier's idiosyncratic investment increases trust in the early phase, while it is not found to affect trust in the maturity phase. In the early phase, the determination of trust begins to be increasingly influenced by partner's relationship investment only because other clues are not observed yet. Reciprocal communication has a positive effect on trust, and long-term orientation is directly influenced by retailer's trust. Communication's effect is greater in the build-up phase than in the maturity phase. A limitation of this study is the unequal sample size in each of the relationship phases. Literature has suggested that the effects of relational constructs on outcomes are different across relationship phases. This study shows that different relational constructs have different effects on trust depending upon the relationship phase.