Achieving High Satisfaction in Supplier-Dealer Relationships

Journal article, 2003

Increased attention has been paid to the question of how to build stable and long-term working relationships between suppliers and dealers. This study proposes a conceptual model including behavioral dimensions of supplier-dealer relationships and presents hypotheses about how to achieve satisfactory inter-organizational relationships. Satisfaction is the consequence of working relationships focused upon in our model. The model is an empirical assessment of the relationship between Swedish lumber dealers and their suppliers. T-test evidence suggests that all proposed critical variables, with the exception of coercive power, are of significant importance for achieving a high rate of perceived relationship satisfaction, regardless of whether the relationship is characterized by a high or a low level of trust and commitment. A good reputation, close relationship and positive relationship benefits are key variables for the achievement of high satisfaction in a ‘high-trust and commitment relationship’. Results also indicate that it is possible to achieve a high satisfaction level even when the supplier-dealer trust and commitment are lacking.