The role of WOM and dynamic capability in B2B transactions

Abstract

Purpose– The purpose of this paper is to verify the factors – word-of-mouth (WOM) information and dynamic capability – that affect industrial buyer-based relationship quality and to examine their effect on relationship continuity in business-to-business (B2B) transactions. The study also aims to examine the mediating role of relationship quality in linking WOM information and relationship continuity and in linking dynamic capability and relationship continuity.Design/methodology/approach– Two methods are used for this study: a literature review to develop a research model and an empirical study to test hypotheses. To achieve the empirical research, 267 cases were analyzed.Findings– This study verified that WOM information and dynamic capability have positive effects on industrial buyer-based relationship quality and relationship continuity in B2B transactions. In addition, relationship quality plays a partially mediating role in linking WOM information and relationship continuity and in linking dynamic capability and relationship continuity.Originality/value– WOM information plays an important role in consumers’ behavior in business-to-customer transactions and in B2B transactions; however, WOM in B2B transactions receives less attention, as it occurs by an informal process. This study suggests WOM information and dynamic capability as factors that affect industrial buyers’ perception of relationship quality and relationship continuity, and the research sought to examine the effects of relationship quality on the resulting actions, relationship continuity. This study could be useful for industrial suppliers to understand the industrial buyers’ perception on relationship quality and the results of relationship quality. Moreover, industrial suppliers could utilize the results of this study to build managerial goals to satisfy customers and to strengthen relationships with customers.