Power, trust and relationship commitment in dealer-supplier relationship in Thailand automobile industry

In supplier-dealer relationships, commitment is referred to as a desire to develop a stable
relationship and a willingness to make short-term sacrifices to realize long-term benefits from the relationship. Despite the many past studies conducted in the area of relationship commitment, little is known to what extent the power and trust factors influence relationship commitment. The present research examines the factors that influence relationship commitment, particularly the roles of the supplier’s power and trust in
enhancing relationship commitment among the dealers. Based on the Social Exchange Theory, this research endeavored to develop a conceptual model of relationship commitment that links the element of relationship commitment with the mediated and non-mediated power of the supplier as perceived by the dealer and the trust of the dealer towards the supplier. Using a questionnaire, data from 317 car dealers in Thailand were collected and analyzed to test the hypotheses. Data were analyzed using descriptive
analysis, factor analysis, correlational analysis and regression analysis. The results show that the level of relationship commitment among car dealers towards their suppliers is at high level. Trust influences relationship commitment among the car dealers. However only non-mediated power (expert and referent) show significant influences on relationship commitment while mediated power (reward, coercive and legal legitimate)
show no significant influence on relationship commitment. It was also found that trust plays a role as a partial mediator that links non-mediated power and relationship commitment. Theoretical, methodological and managerial implications are discussed along with suggestions for future research avenues.