Technological turbulence, supplier market orientation, and buyer satisfaction

The channel literature suggests that building a close relationship with key partners is one of the key strategies that channel members use to overcome the challenges of a changing environment. However, such a strategy may be ineffective when high technological turbulence exists in the buyer's m...

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Bibliographic Details
Published in:Journal of business research 2011-08, Vol.64 (8), p.911-918
Main Authors: Terawatanavong, Civilai, Whitwell, Gregory J., Widing, Robert E., O'Cass, Aron
Format: Article
Language:English
Subjects:
Business management
Customer relations
Customer satisfaction
Distribution channels
Firm performance
Market analysis
Market orientation
Relationship quality
Relationship quality Market orientation Firm performance Technological turbulence
Satisfaction
Strategic behaviour
Studies
Supply chain management
Technological change
Technological turbulence
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Summary:The channel literature suggests that building a close relationship with key partners is one of the key strategies that channel members use to overcome the challenges of a changing environment. However, such a strategy may be ineffective when high technological turbulence exists in the buyer's market. This study focuses on the buyer's perspective in channel relationships and examines the buyer's satisfaction with outcomes resulting from engaging in relationships with a supplier. The results show that a buyer's performance is enhanced when a buyer develops a close relationship with a supplier whom it perceives to be market oriented but that a close relationship becomes detrimental to performance when technological turbulence increases. These findings suggest that managers need to be aware of the effect of technological turbulence and be alert in managing close relationships even with market-oriented suppliers.
ISSN:0148-2963
1873-7978
DOI:10.1016/j.jbusres.2010.09.003