Causes and outcomes of satisfaction in business relationships

Purpose – This study includes relationship marketing concepts (i.e. trust, commitment, and satisfaction) as precursors to transaction cost theory outcomes (i.e. specific investments, opportunism, and formalization) which are rarely, if ever, included together. Trust and commitment lead to satisfaction and satisfaction in turn leads transaction cost outcomes. The paper aims to address these issues. Design/methodology/approach – The random sample is 600 small‐ to medium‐sized Norwegian manufacturers. Confirmatory factor analysis and structural equation modelling was used to examine the responses from 212 key informants. Findings – The strongest positive associations are from the relationship marketing portion of the model including trust satisfaction and commitment satisfaction. The highest negative association in the model is satisfaction opportunism. Contrary to predictions, satisfaction did not have a significant association with either specific investments or formalization. Research limitations/implications – Both relationship marketing and transaction cost theory concepts are examined because it is likely that business success may be motivated by both theories. Limitations of the study are that it only includes small‐ and medium‐sized companies in Norway. Second, it does not cover all business‐to‐business relationships (i.e. only manufacturer‐supplier relationships are included). Finally, additional concepts should be included (i.e. dependence, cooperation, and control). Practical implications – The results suggest that managers should work developing high levels of satisfaction in business relationships to dampen the likelihood that business partners will be opportunistic. In this regard, working on a relationship serves as a safeguard against possible future risks (e.g. opportunism). Originality/value – This study is a seed for future research about the causes and outcomes of satisfaction in business relationships.