An investigation into internal structure of relationship quality

Abstract

There could be witnessed an increasing tendency, in recent research, of using relationship quality as an all-inclusive/higher order construct that may lead to the loss of certain useful information. The paper highlights the need and importance for research to take into consideration the internal structure of relationship quality construct. With a theory-building objective, variance-based structural equation modelling (using PLS-logic) has been performed over a dataset of 284 dyadic supplier-buyer relationships. The results provide useful insights into the dynamics of downstream relationships. First, despite there has been some empirical evidence for a sequential link among three determinants of relationship quality, yet, both satisfaction and trust account for little variations in commitment. Second, the competence-based trust (like the integrity-based trust) largely emerges from higher social satisfaction instead of the economic satisfaction. Third, the social rewards matter more to the exchange partners than the economic rewards in fostering rationality-based commitment.