Determinants of relationship continuity between small retailers and building materials suppliers

Abstract

Objective: This study identifies the main determinants of relationship continuity, and the underlying role of trust as a central construct. Method: Scale validation and testing with Structural Equation Modelling, to test the mediator effect of Trust on Relationship Continuity, in a sample of 127 small retailers. Originality: The existing literature does not clearly indicate the pattern of relationship to be expected between small distributors and their suppliers. Indeed there are few studies in this specific area in Brazil, associated to the difficulties to collect primary data in the B2B context. Results: Trust mediates the effect of the antecedent factors Seller Characteristics (associated to seller support), Supplier Competencies (associated to product adequacy and services quality) and Supplier Resonance (associated to supplier Market orientation) on Relationship Continuity. Theoretical Contributions: Findings in this specific sector are resonant with the main Relationship Marketing theories, namely the Morgan and Hunt KMV model, contributing for its generalization. Managerial Contributions: Sales professional plays a central role, acting as a link between industry and the retailer. We recommend suppliers to demand a special attention for recruiting, training and capacitation.