Strategic Partnership between SME Retailers and Modern Suppliers in Indonesia: A Relationship Marketing Approach
Strategic Partnership between SME Retailers and Modern Suppliers in Indonesia: A Relationship Marketing Approach
Author(s): Anton Setyawan, Fairuz Mudhofar, Yasinta Arum, Ihwan Susila, Moechammad NasirSubject(s): National Economy, Business Economy / Management, Marketing / Advertising
Published by: Vilniaus Universiteto Leidykla
Keywords: strategic partnership; influence strategy; trust; commitment; loyalty;
Summary/Abstract: This study aimed to analyze the business marketing relationship between modern suppliers and SME retailers to empower and strengthen SMEs in Indonesia. The theoretical framework is the relationship marketing model developed by Morgan and Hunt (1994). This framework is based on trust and commitment as the two key mediating variables. The study surveyed 250 SME retailers as respondents selected using purposive sampling. Furthermore, hypotheses were tested using path analysis. The findings showed that trust and commitment to business partnerships mediate the effect of influence strategy on loyalty to business partners and economic performance. The influence strategy significantly affects the business performance of the involved parties. Therefore, strategic business partnerships with modern suppliers improve SME retailers’ business performance.
Journal: Organizations and Markets in Emerging Economies
- Issue Year: 13/2022
- Issue No: 2
- Page Range: 317-335
- Page Count: 19
- Language: English