Channel relationship and business uncertainty: Evidence from the Hong Kong market

Kee Hung Lai, Yeqing Bao, Xiaotong Li

Research output: Journal article publicationJournal articleAcademic researchpeer-review

59 Citations (Scopus)

Abstract

This study examines the dynamics of channel relationships between an end user and multiple suppliers in Hong Kong, a major international logistics hub in Asia. Drawing on the literature on channel relationships, we examine the links between different channel relationship variables and the contingent effect of business uncertainty on the links between these variables and supplier commitment. The results of the study indicate that expected relationship continuity mediates the effects of trust and relationship quality on commitment. Furthermore, the positive effect of trust on commitment is found to be stronger when business uncertainty is high than when business uncertainty is low. As supply chain management is becoming essential for firms to succeed in today's business, industrial marketing managers need to be aware of the dynamics in channel relationships and to better manage their supply chains. The implications of our findings for research and for the practice of channel relationship management are provided.
Original languageEnglish
Pages (from-to)713-724
Number of pages12
JournalIndustrial Marketing Management
Volume37
Issue number6
DOIs
Publication statusPublished - 1 Aug 2008

Keywords

  • Business uncertainty
  • Channel relationship
  • Commitment
  • Trust

ASJC Scopus subject areas

  • Marketing

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