The moderating roles of status of B2B evaluator and dependence in the switching costs – switching intentions – performance causal chain in Korea

Abstract

Switching intentions in the business-to-business (B2B) relationship context have a powerful impact on a firm’s performance and are often considered in relation to perceived switching costs. This factor has also been considered as a good predictor of actual turnover behaviour resulting in reduced market share and profitability of firms. However, despite the importance of switching intentions in B2B relationships, there is still no evidence either to support linkages to switching costs as a key driver of decision-making or to demonstrate interrelationships with firm performance. The author empirically examines the theoretical process of the cognitive assessment – behavioural intentions – performance linkage that explains a firm’s likelihood of terminating B2B relationships using three moderating variables. The results suggest that the switching intentions are driven by switching costs and their similarity to the direct effect on firm performance. Meanwhile, personal relationship loss costs, rather than other types of switching costs, serve an important role in determining the reduction of switching intentions. Finally, the author discusses insights about the present results and suggests future research directions.