Satisfaction in Relation to the Metrics of Quality Constructs in South African Manufacturer- Supplier Relationships

Abstract

Trust, commitment, and satisfaction are three important commonly identified constructs in establishing close manufacturer-supplier business relationships in competitive markets. There is, however, a lack of consensus on how these three constructs relate to one another. This study aims at testing whether satisfaction plays an important mediating role between commitment and trust, and whether satisfaction influences the three important outcomes in business relationships; namely: cooperation, coordination, and continuity. Data was collected from organizations that are part of the 500 largest companies in South Africa using computer-assisted telephone interviews. The findings support the proposed conceptual framework of the study, which show that trust and commitment are positively related to satisfaction; and that satisfaction is positively related to coordination, cooperation, and continuity. An important contribution is made by this study regarding the understanding of the nomo-logical network of quality constructs in manufacturer-supplier relationships. The results support the importance of developing trusting and committed relationships that increase satisfaction as precursors for ensuring coordination, cooperation, and continuity of business relationships.