The Impact of Trust, Network Strength and Environmental Uncertainty on Supplier’s Performance: The Moderating Role of Network Openness
Yun Young Roh, Mirea Woo, Sang‐Heon Lee · Journal of Marketing Thought · 2018
There are numerous factors that have significant impacts on the relationship between distributors and manufacturers such as trust among exchange partners, network strength and external uncertainties. Furthermore, performance of a business is directly affected by those variables, thus, it is extremely important to understand what those variables play in sales of a business. The principle purpose of this study is to examine how trust, network strength and environmental uncertainty affect business performance and the moderating effect of network openness on those three variables. The data is collected from suppliers and manufacturers located in South Korea and further processed with AMOS and SPSS applying stepwise arbitration analysis and multiple regression model. According to the results, both trust and network have a positive impact on business performance and network openness demonstrates a moderating effect on an increase in business performance. Whereas, environmental uncertainty holds a negative impact on performance and was not affected by network openness. Our research significantly suggests optimal conditions to boost sales.