Validating Satisfaction as a Mediator between Quality Constructs in Ongoing Supplier Relationships: An Abstract

Abstract

While literature recognizes the importance of satisfaction, trust, and commitment as key measures of relationship quality, there is a lack of consensus in the literature on how these three constructs influence each other in business relationships. The distinction between early stages of business relationships versus ongoing ones is often neglected in this context. To contribute to a sound theory development, this study aims therefore at further validating the nomological framework initially tested by Svensson et al. (2010) and that the subsequent studies have been compiled by Padin et al. (2017). Subsequently, the research objective is to validate whether satisfaction is a mediator between trust and commitment on the one side and cooperation, coordination, and continuity on the other. This study posits, therefore, satisfaction as an outcome of trust and commitment that mediates the influence of trust and commitment respectively on other relationship quality constructs specifically coordination, cooperation, and continuity. A sample of 400 SMEs in Puerto Rico was used to perform the current study that was not used and explored in previous studies. We performed confirmatory factor analysis and structural equation modeling to test the measurement model and to assess the structural relationships of the conceptual model between the included construct in a sample based upon Puerto Rican business relationships. Our testing of the model provided support for satisfactory validation of findings. The goodness-of-fit measures were fair. Our testing of the model based upon Puerto Rican business relationships accomplishes fairly well the requirements for convergent, discriminant, and nomological validity, as well as for construct reliability. Subsequently, we conclude that the measurement and structural metrics of the research model tested provide support for satisfactory validity and reliability. The findings also indicate that the hypothesized relationships between the relationship quality constructs (i.e., trust, commitment, satisfaction, cooperation, coordination, and continuity expectance) are valid in the ongoing business relationships. Generally, the nomological framework indicates that satisfaction is a mediator between trust and commitment on the one side and cooperation, coordination, and continuity expectancy on the other. The findings reported provide managers with a foundation to deal with their companies’ supplier relationships across countries, as there appears to be a general applicability of the cause-and-effect relationships between the studied quality constructs.