The impact of horizontal and vertical connections on relationships' commitment and trust

Abstract

PurposeWhile an ever‐increasing body of research on business networks has commented on vertically connected relationships, this study embeds the horizontally connected relationships. Constructed on business network theories the paper aims to add more knowledge on business networks by developing a connection model including both vertical and horizontal connections. The model aims to explore the impact of connections on focal business relationships. It differentiates connected relationships on the basis of their vertical and horizontal natures. The purpose is to grasp the impact of these different connected relationships on the focal business relationship. The focal relationship elements are defined by commitment and trust, which capture their properties from the dyadic interaction and the two types of connected relationships.Design/methodology/approachThe paper tests the theoretical construction empirically. The empirical study is based on the IMP2 survey, utilizing information from extensive interviews with 138 firms regarding their relationships with important foreign customers.FindingsThe statistical findings in the form of a LISREL‐model clearly expose the impact of the horizontal connections and verify the validity of the theoretical model. It depicts that trust increase by vertical connections leading to increased commitment, thus strengthening the relationship while horizontal connection, on the contrary, weakens it. The facts also demonstrate how the horizontal connections impose effects on technological long‐term investments.Originality/valueMarketing researchers advocating certain theoretical views are thereby required to observe respect for the market realities with which managers are confronted.