• Journal of the Korean Operations Research and Management Science Society
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• v.33 no.4
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• pp.13-30
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• 2008

We explore the determinants of long-term relationship between the buyer and the supplier to help suppliers develope a strategy to build long-term relationship with their buyers. Based upon an extensive literature review, we propose three droops of independent variables which may affect long-term relationship, including (a) environmental factors (product complexity, product importance, source dependence, price sensitivity), (b) relational factors(trust, commitment, satisfaction, intention of expansion), (c) operational performance(quality, delivery, cost capability, technical knowhow). The buyer's actual period of relationship with its main supplier is used as a dependent variable. Using hierarchical multiple regression analysis, we empirically test hypotheses, analysing a sample of 290 manufacturing firms in the U.S. The statistical results indicate that the buyer's source dependence, price sensitivity and the supplier's commitment play a significant role in establishing long-term relationship between the buyer and the supplier. However, the supplier's cost capability and technical knowhow in operational performance negatively affect long-term relationship in contrast with our hypotheses. Due to this controversial result, we divide the sample group Into dual sourcing and multiple sourcing environments and reconduct regression analysis in a post hoc manner. The findings show that the supplier's cost capability and technical knowhow are negatively associated with the length of relationship only in the multiple sourcing environment. The results may confirm that both parties' opportunistic behavior is more salient in the multiple sourcing environment than in the single sourcing environment.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.17 no.4
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• pp.440-447
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• 2016

Faced with the recent global economic recession, academics looked to the industrial B2B and B2C markets as potential new growth engines. In the B2B market, focusing on the relationship with customers, the relationship benefits are important, and institutional factors will affect the relationship and relationship values with customers. In this study, the relationship values between South Korea and Taiwan are compared by considering their national characteristics. By applying a mixed research method based on sequential exploratory design, 6 relationship values (supplier knowhow, service support, time to market, delivery performance, personal interaction, and product quality) are extracted. In particular, South Korea and Taiwan give priority to supplier knowhow and service support, respectively. Our research findings have both theoretical and practical implications for other emerging countries, as well as developed countries.