Structural and Social Bonds of Commitment in Inter-Firm Relationships

Firms are forming inter-organizational relationships requiring increasing levels of cooperation, communication, trust, mutuality and openness, and information exchange amongst the network members. Building on previous industrial buyer supplier relationship research we developed and tested a comprehensive structural equation model of determinants influencing successful long-term commitment. The final model successfully specified relationships among mutual goals, process adaptation, technology investments, trust, communication, structural bonding and cooperation as antecedents of long term commitment. Several key findings suggest directions managers might take to build more effective relationships. [PUBLICATION ABSTRACT]