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ANTECEDENTS OF RELATIONSHIP INTENTIONS IN SOUTH AFRICAN CONSTRUCTION INDUSTRY BUSINESS-TO-BUSINESS ENVIRONMENTS: A FACTOR ANALYTICAL APPROACH

Year 2020, Volume: 12 Issue: 1, 147 - 162, 19.02.2020

Abstract

A growing interest in relationship marketing as a practice and research focus has been witnessed over the last two decades and this was spurred primarily by the need to create sustainable competitive advantage in business-to-customer (B2C) environments. This has prompted marketers to shift their attention from their short-term transactional business approach to more enduring relationship-building strategies. An extant literature review revealed that limited research studies have been conducted in business-to-business (B2B) settings. This study examined the antecedents of relationship intentions in B2B settings in the South African construction industry, in the Gauteng province. The study is imbedded within a post-positivist approach with the use of a quantitative research design. Data were collected from a structured self-administered questionnaire (n=560) from civil and building contractors. Exploratory and confirmatory factor analysis were employed to determine possible factors and to establish the data’s goodness-of fit to the model. In addition, the reliability as well as validity of the study’s measuring instrument was established.
The findings offer support for an eight-factor structure (flexibility, information sharing, trust, fear of relationship loss, forgiveness, expectations and feedback) with 36 items that explain the antecedents of relationship intentions. Moreover, the confirmatory factor results show satisfactory goodness-of fit of the proposed factor structure to the data. In B2B environments, relational partners can leverage these eight relationship intention strategies in order to enhance their association for business longevity. A comprehensive framework has been proposed, which can be used as an archetype to measure and understand the antecedents of relationship intentions within B2B environments.

References

  • Ashley, C., Nobel, S.M., Donthu, N. & Lemon, K.N. (2011). Why won’t relate: Obstacles to relationship marketing engagement. Journal of Business Research, 64, 749-756. Awwad, A.S. & Almahamid, S.M. (2008). The link between modification flexibility and organisational objectives: an empirical study on Jordanian manufacturing companies. Journal of Social Sciences, 4(4), 299-307. Bateson, J.E.G. & Hoffman, K.D. 2011. Services Marketing. 4th ed. Australia: Cengage Learning. Bbenkele, E. & Madikiza, L. (2016). Envisioning public sector pathways: Gauteng as an entrepreneurial province in South Africa. Journal of Entrepreneurship and Innovation in Emerging Economies, 2(2), 91-108. Benton, W.C. & Mchenry, L. (2010). Construction purchasing and supply chain management. New York: McGraw-Hill. Berndt, A. & Tait, M. (2012). Relationship marketing and customer relationship management. 2nd ed. Cape Town: Juta. Bojei, J. & Abu, M.L. (2014). The underlying dimensions of relationship marketing in the Malaysian mobile service sector. Journal of Relationship Marketing, 13(3), 169-190. Fornell, C & Larcker, D.F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50. Han, H. & Hyun, S.S. (2015). Customer retention in the medical tourism industry: impact of quality, satisfaction, trust and price reasonableness. Tourism Management, 46, 20-29. Hoppner, J.J., Griffith, D.A. & White, R.C. (2015). Reciprocity in relationship marketing: a cross-cultural examination of the effects of equivalence and immediacy on relationship quality and satisfaction with performance. Journal of International Marketing, 23(4), 64-83. Hsu, C.C., Kannan, V.R., Tan, K.C. & Leong, G.K. (2008). Information sharing, buyer‐supplier relationships and firm performance: a multi‐region analysis. International Journal of Physical Distribution and Logistics Management, 38(4), 296-310. Jones, M.A., Reynolds, K.E., Mothersbaugh, D.L. & Beatty, S.E. (2007). The positive and negative effects of switching costs on relational outcomes. Journal of Service Research, 9(4), 335-355. Kim, W., Ok, C. & Canter, D.D. (2012). Moderating role of a priori customer-firm relationship in service recovery situations. The Service Industries Journal, 32(1), 59-82. Kline, R.B. (2011). Principles and practice of structural equation modelling. 3rd ed. New York: The Guilford Press. Kumar, V., Bohling, T.R. & Ladda, R.N. (2003). Antecedents and consequences of relationship intention: implications for transaction and relationship marketing. Industrial Marketing Management, 32, 667-676. La, S. & Choi, B. (2012). The role of customer affection and trust in loyalty rebuilding after service failure and recovery, The Service Industries Journal, 32(1), 105-125. Lin, S.Y. (2013). The influence of relational selling behavior on relationship quality: the moderating effect of perceived price and customers’ relationship proneness. Journal of Relationship Marketing, 12(3), 204-222. Malhotra, N.K. (2010). Marketing Research: An Applied Orientation. 6th ed. Upper Saddle River: Pearson. Morgan, R.M. & Hunt, S.D. (1994). The commitment trust theory of relationship marketing. Journal of Marketing, 58(3), 20-38. Nabi, N. (2012). Customer expectations of service quality: a study on private banks of Bangladesh. World Review of Business Research, 2(4), 172-186. Pelser, C. & Mostert, P.G. (2016). Relationship intention and satisfaction as predictors of wholesale and retail customers’ loyalty towards their training providers. Southern African Business Review, 20, 29-50. Raciti, M.M., Ward, T. & Dagger, T.S. (2013). The effect of relationship desire on Consumer to business relationships. European Journal of Marketing, 47(4), 615-634. Roberts-Lombard, M., Mpinganjira, M. & Svensson, G., (2017). Antecedents and outcomes of satisfaction in buyer supplier relationships in South Africa: a replication study. South African Journal of Economic and Management Sciences, 20(2017), 2-14. Segarra-Moliner, J.R., Moliner-Tena, M.A. & Sánchez-Garcia, J. 2013. Relationship quality in business to business: a cross-cultural perspective from universities. Marketing Intelligence and Planning, 31(3), 196-215. Tong, P.Y. & Crosno, J. 2015. Are information asymmetry and sharing good, bad or context dependent? A meta-analytic review. Industrial Marketing Management, 56(7), 167-180. Wei, Y., Li, Z., Burton, J. & Haynes, J. (2013). Are Chinese consumers created equally relational? Management Research Review, 36(2013), 50-65. Weinstein, A. (2002). Customer-specific strategies customer retention: a usage segmentation and customer value approach. Journal of Targeting, Measurement and Analysis for Marketing, 10(3), 259-268. Wickramasinghe, V. & Weliwitigoda, P. (2011). Benefits gained from dimensions of social capital: a study of software developers in Sri Lanka. Information Technology and People, 24(4), 393-413. Yu, K., Cadeaux, J. & Song, H. (2017). Flexibility and quality in logistics and relationships. Industrial Marketing Management, 62(4), 211-225. Zeithaml, V.A., Bitner, M.J. & Gremler, D.D. 2009. Services marketing: integrating customer focus across the firm. 5th ed. New York: McGraw-Hill. Malhotra, N., Uslay, C. & Ndubisi, O. 2008. Commentary on the essence of business marketing theory, research and tactics: contributions by the journal of business-to-business marketing by Lichtenthal, Mummalaneni and Wilson: a paradigm shift and prospection through expanded roles of buyers and sellers. Journal of Business to Business Marketing, 15(2), 204-217
Year 2020, Volume: 12 Issue: 1, 147 - 162, 19.02.2020

Abstract

References

  • Ashley, C., Nobel, S.M., Donthu, N. & Lemon, K.N. (2011). Why won’t relate: Obstacles to relationship marketing engagement. Journal of Business Research, 64, 749-756. Awwad, A.S. & Almahamid, S.M. (2008). The link between modification flexibility and organisational objectives: an empirical study on Jordanian manufacturing companies. Journal of Social Sciences, 4(4), 299-307. Bateson, J.E.G. & Hoffman, K.D. 2011. Services Marketing. 4th ed. Australia: Cengage Learning. Bbenkele, E. & Madikiza, L. (2016). Envisioning public sector pathways: Gauteng as an entrepreneurial province in South Africa. Journal of Entrepreneurship and Innovation in Emerging Economies, 2(2), 91-108. Benton, W.C. & Mchenry, L. (2010). Construction purchasing and supply chain management. New York: McGraw-Hill. Berndt, A. & Tait, M. (2012). Relationship marketing and customer relationship management. 2nd ed. Cape Town: Juta. Bojei, J. & Abu, M.L. (2014). The underlying dimensions of relationship marketing in the Malaysian mobile service sector. Journal of Relationship Marketing, 13(3), 169-190. Fornell, C & Larcker, D.F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50. Han, H. & Hyun, S.S. (2015). Customer retention in the medical tourism industry: impact of quality, satisfaction, trust and price reasonableness. Tourism Management, 46, 20-29. Hoppner, J.J., Griffith, D.A. & White, R.C. (2015). Reciprocity in relationship marketing: a cross-cultural examination of the effects of equivalence and immediacy on relationship quality and satisfaction with performance. Journal of International Marketing, 23(4), 64-83. Hsu, C.C., Kannan, V.R., Tan, K.C. & Leong, G.K. (2008). Information sharing, buyer‐supplier relationships and firm performance: a multi‐region analysis. International Journal of Physical Distribution and Logistics Management, 38(4), 296-310. Jones, M.A., Reynolds, K.E., Mothersbaugh, D.L. & Beatty, S.E. (2007). The positive and negative effects of switching costs on relational outcomes. Journal of Service Research, 9(4), 335-355. Kim, W., Ok, C. & Canter, D.D. (2012). Moderating role of a priori customer-firm relationship in service recovery situations. The Service Industries Journal, 32(1), 59-82. Kline, R.B. (2011). Principles and practice of structural equation modelling. 3rd ed. New York: The Guilford Press. Kumar, V., Bohling, T.R. & Ladda, R.N. (2003). Antecedents and consequences of relationship intention: implications for transaction and relationship marketing. Industrial Marketing Management, 32, 667-676. La, S. & Choi, B. (2012). The role of customer affection and trust in loyalty rebuilding after service failure and recovery, The Service Industries Journal, 32(1), 105-125. Lin, S.Y. (2013). The influence of relational selling behavior on relationship quality: the moderating effect of perceived price and customers’ relationship proneness. Journal of Relationship Marketing, 12(3), 204-222. Malhotra, N.K. (2010). Marketing Research: An Applied Orientation. 6th ed. Upper Saddle River: Pearson. Morgan, R.M. & Hunt, S.D. (1994). The commitment trust theory of relationship marketing. Journal of Marketing, 58(3), 20-38. Nabi, N. (2012). Customer expectations of service quality: a study on private banks of Bangladesh. World Review of Business Research, 2(4), 172-186. Pelser, C. & Mostert, P.G. (2016). Relationship intention and satisfaction as predictors of wholesale and retail customers’ loyalty towards their training providers. Southern African Business Review, 20, 29-50. Raciti, M.M., Ward, T. & Dagger, T.S. (2013). The effect of relationship desire on Consumer to business relationships. European Journal of Marketing, 47(4), 615-634. Roberts-Lombard, M., Mpinganjira, M. & Svensson, G., (2017). Antecedents and outcomes of satisfaction in buyer supplier relationships in South Africa: a replication study. South African Journal of Economic and Management Sciences, 20(2017), 2-14. Segarra-Moliner, J.R., Moliner-Tena, M.A. & Sánchez-Garcia, J. 2013. Relationship quality in business to business: a cross-cultural perspective from universities. Marketing Intelligence and Planning, 31(3), 196-215. Tong, P.Y. & Crosno, J. 2015. Are information asymmetry and sharing good, bad or context dependent? A meta-analytic review. Industrial Marketing Management, 56(7), 167-180. Wei, Y., Li, Z., Burton, J. & Haynes, J. (2013). Are Chinese consumers created equally relational? Management Research Review, 36(2013), 50-65. Weinstein, A. (2002). Customer-specific strategies customer retention: a usage segmentation and customer value approach. Journal of Targeting, Measurement and Analysis for Marketing, 10(3), 259-268. Wickramasinghe, V. & Weliwitigoda, P. (2011). Benefits gained from dimensions of social capital: a study of software developers in Sri Lanka. Information Technology and People, 24(4), 393-413. Yu, K., Cadeaux, J. & Song, H. (2017). Flexibility and quality in logistics and relationships. Industrial Marketing Management, 62(4), 211-225. Zeithaml, V.A., Bitner, M.J. & Gremler, D.D. 2009. Services marketing: integrating customer focus across the firm. 5th ed. New York: McGraw-Hill. Malhotra, N., Uslay, C. & Ndubisi, O. 2008. Commentary on the essence of business marketing theory, research and tactics: contributions by the journal of business-to-business marketing by Lichtenthal, Mummalaneni and Wilson: a paradigm shift and prospection through expanded roles of buyers and sellers. Journal of Business to Business Marketing, 15(2), 204-217
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Details

Primary Language English
Subjects Economics
Journal Section Research Article
Authors

Lehlohonolo Amos Masitenyane This is me

Manilall Dhurup This is me

Bakae Aubrey Mokoena This is me

Asphat Muposhi This is me

Publication Date February 19, 2020
Published in Issue Year 2020 Volume: 12 Issue: 1

Cite

APA Masitenyane, L. A., Dhurup, M., Mokoena, B. A., Muposhi, A. (2020). ANTECEDENTS OF RELATIONSHIP INTENTIONS IN SOUTH AFRICAN CONSTRUCTION INDUSTRY BUSINESS-TO-BUSINESS ENVIRONMENTS: A FACTOR ANALYTICAL APPROACH. International Journal of Business and Management Studies, 12(1), 147-162.
AMA Masitenyane LA, Dhurup M, Mokoena BA, Muposhi A. ANTECEDENTS OF RELATIONSHIP INTENTIONS IN SOUTH AFRICAN CONSTRUCTION INDUSTRY BUSINESS-TO-BUSINESS ENVIRONMENTS: A FACTOR ANALYTICAL APPROACH. IJBMS. February 2020;12(1):147-162.
Chicago Masitenyane, Lehlohonolo Amos, Manilall Dhurup, Bakae Aubrey Mokoena, and Asphat Muposhi. “ANTECEDENTS OF RELATIONSHIP INTENTIONS IN SOUTH AFRICAN CONSTRUCTION INDUSTRY BUSINESS-TO-BUSINESS ENVIRONMENTS: A FACTOR ANALYTICAL APPROACH”. International Journal of Business and Management Studies 12, no. 1 (February 2020): 147-62.
EndNote Masitenyane LA, Dhurup M, Mokoena BA, Muposhi A (February 1, 2020) ANTECEDENTS OF RELATIONSHIP INTENTIONS IN SOUTH AFRICAN CONSTRUCTION INDUSTRY BUSINESS-TO-BUSINESS ENVIRONMENTS: A FACTOR ANALYTICAL APPROACH. International Journal of Business and Management Studies 12 1 147–162.
IEEE L. A. Masitenyane, M. Dhurup, B. A. Mokoena, and A. Muposhi, “ANTECEDENTS OF RELATIONSHIP INTENTIONS IN SOUTH AFRICAN CONSTRUCTION INDUSTRY BUSINESS-TO-BUSINESS ENVIRONMENTS: A FACTOR ANALYTICAL APPROACH”, IJBMS, vol. 12, no. 1, pp. 147–162, 2020.
ISNAD Masitenyane, Lehlohonolo Amos et al. “ANTECEDENTS OF RELATIONSHIP INTENTIONS IN SOUTH AFRICAN CONSTRUCTION INDUSTRY BUSINESS-TO-BUSINESS ENVIRONMENTS: A FACTOR ANALYTICAL APPROACH”. International Journal of Business and Management Studies 12/1 (February 2020), 147-162.
JAMA Masitenyane LA, Dhurup M, Mokoena BA, Muposhi A. ANTECEDENTS OF RELATIONSHIP INTENTIONS IN SOUTH AFRICAN CONSTRUCTION INDUSTRY BUSINESS-TO-BUSINESS ENVIRONMENTS: A FACTOR ANALYTICAL APPROACH. IJBMS. 2020;12:147–162.
MLA Masitenyane, Lehlohonolo Amos et al. “ANTECEDENTS OF RELATIONSHIP INTENTIONS IN SOUTH AFRICAN CONSTRUCTION INDUSTRY BUSINESS-TO-BUSINESS ENVIRONMENTS: A FACTOR ANALYTICAL APPROACH”. International Journal of Business and Management Studies, vol. 12, no. 1, 2020, pp. 147-62.
Vancouver Masitenyane LA, Dhurup M, Mokoena BA, Muposhi A. ANTECEDENTS OF RELATIONSHIP INTENTIONS IN SOUTH AFRICAN CONSTRUCTION INDUSTRY BUSINESS-TO-BUSINESS ENVIRONMENTS: A FACTOR ANALYTICAL APPROACH. IJBMS. 2020;12(1):147-62.