n Management Dynamics : Journal of the Southern African Institute for Management Scientists - Precursors and outcomes of satisfaction in business relationships : a replication study




This study examines the proposition that in business-supplier relationships, trust and commitment generate satisfaction; these in turn influence transaction cost outcomes of specific investments, opportunism and formalisation. Data were collected from 223 large companies in South Africa using a structured questionnaire. The findings show that trust and commitment relate positively to satisfaction. They also show that satisfaction, empowered by trust and commitment, relates positively to formalisation, negatively to opportunism, and had no significant influence on willingness to invest in specific assets. These results support the argument that business managers should devote resources to creating satisfactory supplier relationships based on trust and commitment. The findings contribute to an enhanced understanding of the causes and outcomes of satisfaction in business relationships in the South African context, and help to validate findings reported in other countries.


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