Antecedents of commitment to an import supplier

Antecedents of Commitment to an Import Supplier Submitted by Md Abu Saleh B Com (Honours), M Com, M-Phil Dhaka A thesis submitted in fulfillment of the requirements for the degree of Doctor of Philosophy School of Advertising, Marketing and Public Relations Faculty of Business QUEENSLAND UNIVERSITY OF TECHNOLOGY Brisbane, Queensland 4000, Australia 2006 Title: Antecedents of Commitment to an Import Supplier Saleh @ 2006 Key Words: Antecedents of commitment Importer’s commitment Importer supplier relationship Mediating role of trust Cultural similarity Communication Knowledge and experience Supplier’s opportunism Environmental volatility 10 Transaction-specific investment 11 Supplier’s competencies ii Abstract The concept of commitment has emerged recently in international business literature especially in explaining importer behaviour as a counterpart of the process of internationalisation Importer commitment often plays a dominant role as one of the major factors influencing relationships in the exporter-importer dyad and facilitates the process of internationalisation by imparting access to the international market This critical importer and supplier relationship and its animating factors are, however, overlooked and largely neglected in the literature Accordingly, it is inconclusive as to which factors influence importer commitment and how they influence it Drawing on the literature, this study strived to investigate the spectrum of importer commitment and has explicitly examined eight factors influencing importer commitment to a foreign supplier by integrating the factors in a comprehensive model Cultural similarity between importer and overseas supplier, knowledge and experience of the importer, the supplier’s competencies, communication between importer and supplier, the supplier’s opportunism, the importer’s trust, importer transaction-specific investment, and environmental volatility of the import market have been identified as possible antecedents of importer commitment Theoretical foundations are drawn basically from transaction cost economics, internationalisation process theory and resource-based theory of the firm to design a basic framework for quantitative investigation Further, the study endeavors to gain important insights into the phenomena related to the trust and commitment building process through qualitative in-depth interviews In addition, to validate the qualitative reasoning, a competing quantitative model is developed where trust plays a mediating role for some of the predictor variables in the model Primary data were collected from a sample of 232 industrial and commercial importers in a developing country for empirical verification of the quantitative models using Structural Equation Modeling As reported in this thesis, the proposed model with minor modifications fit better with the data compared to the competing model, and it explained 56% of the variance of importer commitment However, the analysis of the modified proposed structural model revealed that ten out of fourteen hypotheses are significant including five direct paths as antecedents of importer commitment The mediating role of trust and opportunism in the model is also supported Twelve interviews were conducted to add in-depth richer insights into the study for further verification of the knowledge development, and trust and commitment building process in the importer-supplier relationship The findings support most conceptual links in the qualitative model and lend support to most of the hypothesised relationships in the modified competing quantitative model These findings extend the application of the underpinned theories and their tenets in explaining the importersupplier commitment relationship and contribute to the body of knowledge Implications of the findings are discussed and future research directions are recommended iii Table of Contents Contents Chapter Introduction …………………………………………… Overview ………………………………………………………………… 1.1 Introduction ………………………………………………………… 1.2 Background of the Study …………………………………………… 1.3 Research Problem …………………………………………………… 1.4 Research Question and Objective …………………………………… 1.5 Proposed Conceptual Framework ………………………… 1.6 Scope of the Study …………………………………………………… 1.7 Significance of the Study …………………………………………… 1.8 Research Methods and Analyses …………………………………… 1.9 The Study in Context ……………………………….……………… 1.10 Major Areas of Contributions ……………………………………… 1.11 Limitations of the Study ………………………………… 1.12 Thesis Outline ……………………………………………………… Chapter Literature Review ……………………………………… Page 1 10 11 12 13 14 14 17 17 18 18 27 28 33 33 36 38 41 44 46 49 52 54 55 Introduction ……………………………………………………………… 55 3.1 Proposed Model and Hypothesised Relationships 56 3.2 Trust and Commitment Building Process - A Framework for Conceptual Insight …………………………………………………… 66 3.3 The Proposed Competing Model ……………………… …………… 70 Overview ………………………………………………………………… 2.1 Review of the Fundamental Research Streams ……………………… 2.1.1 Theoretical Foundation for the Study ……………………… 2.1.2 General Review of the Pertinent Directions ………………… 2.1.3 Commitment Studies ……………………………………… 2.2 Literature Related to the Antecedents of Commitment ……………… 2.2.1 Cultural Similarity ………………………………………… 2.2.2 Knowledge and Experience ………………………………… 2.2.3 Supplier’s Competencies……… …………………………… 2.2.4 Communication …………………………………………… 2.2.5 Opportunism ………………………………………………… 2.2.6 Trust ………………………………………………………… 2.2.7 Transaction-Specific Investment …………………………… 2.2.8 Environmental Volatility …………………………………… 2.3 Synthesis …………………………………………………………… Chapter Conceptual Framework ……………………………… iv Table of Contents Cont Contents Chapter Methodology and Research Plan…………………… Overview ………………………………………………………………… 4.1 Methodological Approach …………………………………………… 4.2 Quantitative Research Design ……………………………………… 4.2.1 Population and Sample of the Study ……………………… 4.2.2 Unit of Analysis …………………………………………… 4.2.3 Selection of Key Informants ………………………………… 4.2.4 Measurement of Constructs ………………………………… 4.2.5 Translation of Instrument and Pre-testing ………………… 4.2.6 Data Collection Procedure and Response Rate……………… 4.2.7 Verification of Non-Response Bias………………………… 4.2.8 Analysis of Data …………………………………………… Chapter Sample Demographics, Data Screening, Measurement Development and Structural Model Testing……………… Overview ………………………………………………………………… 5.1 Sample Demographics and Data Screening… …………………… 5.1.1 Respondent and Firm Profile ……………………………… 5.1.2 Examination of Data Entry and Missing Data ……………… 5.1.3 Assessment of Normality and Outliers ……………………… 5.2 Measurement Development………………………………………… 5.2.1 Fit Indices …………………………………………………… 5.2.2 Initial Measurement Model Fit and Modification ………… 5.2.2.1 Trust: Initial Findings ……………………………… 5.2.2.2 Communication: Initial Findings …………………… 5.2.2.3 Cultural Similarity: Initial Findings ………………… 5.2.2.4 Supplier’s Competencies: Initial Findings ………… 5.2.2.5 Transaction Specific Investment: Initial Findings … 5.2.2.6 Overseas Supplier’s Opportunism: Initial Findings … 5.2.2.7 Environmental Volatility: Initial Findings ………… 5.2.2.8 Knowledge and Experience: Initial Findings ……… 5.2.2.9 Commitment: Initial Findings ……………………… Page 75 75 76 78 78 81 81 82 91 91 93 94 95 95 96 96 101 102 104 104 108 109 110 112 114 116 118 119 120 122 v Table of Contents Cont Contents 5.2.3 Overall Measurement Model Fit …………………………… 5.2.4 Bivariate Correlations between Latent Variables …………… 5.2.5 Validity of the Constructs ………………………………… 5.2.6 Overall Results of Measurement Development …………… 5.3 Model Testing ……………………………………………………… 5.3.1 Testing the Proposed Model and Fit Indices ……………… 5.3.2 Testing the Competing Model and Fit Indices ……………… 5.3.3 Model Comparison and Summary of the Model Fit ………… Chapter Hypotheses Testing and Discussions …………… Overview ………………………………………………………………… 6.1 Predictors and Mediators of Commitment…………………………… 6.2 Hypotheses Testing ………………………………………………… 6.2.1 Cultural Similarity and Importer Commitment …………… 6.2.2 Environmental Volatility and Supplier’s Opportunism …… 6.2.3 Supplier’s Opportunism and Importer Commitment ……… 6.2.4 Supplier’s Opportunism and Importer Trust ……………… 6.2.5 Environmental Volatility and Importer Commitment …… 6.2.6 Supplier’s Competencies and Importer Commitment …… 6.2.7 Transaction-Specific Investment (TSI) and Importer Commitment ……………………………………………… 6.2.8 Knowledge and Experience and Importer Commitment … 6.2.9 Communication and Importer Trust ……………………… 6.2.10 Communication and Importer Commitment ……………… 6.2.11 Trust and Importer Commitment ………………………… 6.3 Additional Paths in the Modified Proposed Model ………………… 6.3.1 Communication and Supplier’s Opportunism …………… 6.3.2 Cultural Similarity and Supplier’s Opportunism ………… 6.3.3 Supplier’s Competencies and Supplier’s Opportunism …… 6.4 Summary …………………………………………………………… Page 124 126 127 128 130 130 133 136 141 141 142 143 145 146 147 148 149 150 151 153 154 155 156 157 157 158 158 159 vi Table of Contents Cont Contents Chapter Page Findings and Discussions of Qualitative Data … 163 Introduction ……………………………………………………………… 163 7.1 Qualitative Data Collection and Sample …………………………… 165 7.2 Protocol for Qualitative Interview ………………………………… 166 7.3 Qualitative Data Analysis …………………………………………… 167 7.4 Qualitative Depth Interview Profile ………………………………… 168 7.5 Brief Case Background and Discussion …………………………… 170 7.6 Findings of Qualitative Depth Interviews …………………………… 172 7.6.1 Cultural Similarity ………………………………………… 172 7.6.2 Communication …………………………………………… 183 7.6.3 Learning, Knowledge and Experience …………………… 190 7.6.4 Trust and Commitment …………………………………… 195 7.7 Overall Synthesis of Cases ………………………………………… 201 7.8 Overall Summary of the Case Analyses …………………………… 204 Chapter Summary and Implications ………………………… 207 Introduction ……………………………………………………………… 8.1 Summary of the Report ……………………………………………… 8.2 Theoretical and Managerial Implications …………………………… 8.3 Overall Contributions ……………………………………………… 8.4 Limitations ………………………………………………………… 8.5 Future Research Directions ………………………………………… 8.6 Conclusion ………………………………………………………… 207 208 210 215 221 222 224 vii List of Tables Table 2.1 2.2 2.3 4.1 4.2 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.15 5.17 5.18 5.19 5.20 5.21 Page Studies Examined Commitment as DV and IV …………………… Studies Examining Communication ……………………………… Studies Examining Trust as DV, IV and Interrelated IV in Commitment Studies……………………………………………… Import Category and Overall Response Rate.…………………… Assessment of Non-Response Bias… …………………………… Respondents’ Profile…… ………………………………………… Firm Profile…… ………………………………………………… Firms’ Exporting Status and Import as Input of Export ………… Descriptive Statistics …………………………………………… SEM Fit Indices Reported in this Study ………………………… Summary of Initial Findings (CFA): Trust ……………………… Summary of Initial Findings (CFA): Communication…………… Summary of Initial Findings (CFA): Cultural Similarity ………… Summary of Initial Findings (CFA): Supplier’s Competencies … Summary of Initial Findings (CFA): Transaction-Specific Investment………………………………………………………… Summary of Initial Findings (CFA): Supplier’s Opportunism…… Summary of Initial Findings (CFA): Environmental Volatility…… Summary of Initial Findings (CFA): Knowledge and Experience… Summary of Initial Findings (CFA): Commitment……………… Summary of Overall (Initial and Final) Measurement Model …… Implied Correlation Matrix ……………………………………… Summary of the Measurement Models Fit Statistics ……………… Proposed Model: SEM Test Output, Fit Indices and Desired Fit Level ……………………………………………………………… Modified Proposed Model: SEM Test Output, Fit Indices and Desired Fit Level ………………………………………………… 29 42 47 93 93 97 99 100 103 106 110 111 113 115 117 119 120 121 123 125 126 129 130 132 Proposed Competing Model: SEM Output, Fit Indices and Desired Fit Level …………………………………………………………… 133 Modified Competing Model: SEM Output, Fit Indices and Desired Fit Level …………………………………………………………… 134 viii List of Tables Cont Table 5.22 5.23 5.24 6.1 6.2 7.1 7.2 7.3 7.4 8.1 Page Models Comparison: Proposed and Competing Structural Model Fit Indices ………………………………………………………… Overall Measurement and Structural Model Fit Indices ………… Standardised Indirect Effect (IE)………………………………… Standardised Indirect Effect (IE)………………………………… SEM Output for Hypothesised Path Relationships in the Proposed and Modified proposed Model …………………………………… Types of Respondents, Their Code Number and Characteristics … Interviewed Cases, Firm Sizes, Major Supplier Relationships, and Holding Job Positions of the Key Informants …………………… Categorisation of Cases …………………………………………… Summary Report of Cross Case Analysis based on Codes ……… Contributions of the Study ………………………………………… 136 137 140 142 144 166 169 169 202 219 ix List of Figures Figure 1.1 2.1 2.2 2.3 3.1 3.2 3.3 5.1 5.2 5.3 6.1 6.2 6.3 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 Page Proposed Conceptual Framework ………………………………… Factors Derived from the Transaction Cost Theory and Their Impact on Commitment…………………………………………… 23 Factors Derived from the Internationalisation Process Theory as well as the Transaction Cost Theory and Their Impact on Commitment………… 25 Factor Derived from the Literature related to Resource-Based View of the Firm…………………………………………………… Model 1: Propose Model - Antecedents of Commitment to an Import Supplier …………………………………………………… A Framework for Trust and Commitment Building Process ……… Model 2: A Competing Model to Verify the Mediating Effect of Trust ……………………………………………………………… Tested Proposed Structural Model with β: Commitment & Other Paths… Modified Competing Structural Model with β: Mediating Role of Trust Tested Modified Proposed Structural Model with β: Commitment & Other Inter-Relationships ……………………………………… Significant Paths in the Proposed Model………………………… Significant Additional Paths in the Modified Model…………… Final Tested Model with Standardised β………………………… A Conceptual Framework for Trust and Commitment Building Process …………………………………………………………… Cultural Similarity – Communication Matrix …………………… Cultural Similarity – Learning, Knowledge and Experience Matrix Cultural Similarity – Trust Matrix ………………………………… Communication - Learning, Knowledge and Experience Matrix … Communication – Trust Matrix …………………………………… Communication – Commitment Matrix …………………………… Learning, Knowledge and Experience – Trust Matrix …………… Learning, Knowledge and Experience – Commitment Matrix …… Trust - Commitment Matrix ……………………………………… Derived Qualitative Model Based on In-depth Data: Trust and Commitment Building Process …………………………………… 26 56 69 71 131 135 138 160 161 162 163 173 178 182 186 188 189 192 194 197 205 x 282 283 284 Appendix - QUT Ref No 3370H Strictly Confidential Qualitative Interview Protocol Queensland University of Technology School of International Business An Exploratory Study of Commitment to an Import Supplier INTERVIEW PROTOCOL FOR QUALITATIVE INFORMATION Study Conducted By: Md Abu Saleh PhD Fellow Code No: Location: District: Country: Participant’s Designation Company Name Date of Interview 285 Dear Sir/Madam, This study aims to identify the antecedents of importer commitment and their (antecedents’) influence on commitment to an import supplier I am therefore seeking from you some important information with respect to your major supplier that will enable me to reach worthwhile conclusion This interview should only take around an hour of your valuable time Some of the follow up questions may appear to be similar, but the answers to them will enable me to scientifically assess the responses, and draw valid conclusions I can assure you that the information you provide in this interview will be treated in strict confidence This project has received ethical clearance from QUT If you have any concerns about the ethical conduct of this project, please contact the Research Ethics Officer on (07) 3864 2340 or on email ethicscontact@qut.edu.au Your cooperation in this research project will be greatly appreciated Yours sincerely, Md Abu Saleh PhD Candidate School of International Business QUT, Brisbane, QLD 4001 286 Working guide/manual of qualitative information Q1: How many suppliers you have currently? Q2: How long have you been involve with your major supplier? Q3: Can you please describe your relationship with your most important major supplier i.e specific supplier? Q4: How did the relationship develop or is developing over the time? (More directions may be required) OR How has the relationship developed over time? Q5: How committed are you to the import supplier relationship? (That is, how likely are you to continue importing from this supplier, i.e your major supplier?) Why? (If the answer is focusing on high or low levels of commitment then the following question will being asked.) Q6: How did you reach this level of commitment (either high or low levels of commitment)? If it is higher, how long did it take to develop this level of commitment? If it is lower, could you please explain the reason for this level of commitment? 287 Q7: In your consideration, what are the specific factors that really matter in (improving or building) importer supplier commitment relationship? Please state Q8: How did you develop your level of trust with this supplier? What are the factors that affect building trust? Q9: What are the contents of trust? Q10: How distrusting situation may arise? Did you face any distrusting situation since date with this supplier? Why or why not? Q11: Do you think cultural similarity, communication, learning and knowledge help to build trust? How? Explain please The directions will be as follows (Cultural similarity Trust, Communication Trust, Learning Trust, Knowledge Trust) Q12: How you learn about suppliers’ products, their market needs, buying process and technical attributes of the products? 288 Q13: What have you learned from the relationship with your major supplier? How? Explain please Q14: Do you think that cultural similarity and communication enhances learning process? How? Explain please (Is there any additional factors that helps to learn?) The directions will be as: Cultural similarity Communication, cultural similarity and communication Learning Q15: a How frequently you communicate with your major supplier? Why? Q15: b What are the channels you are using in communication? Q16: Which communication channel is most useful for you? Why? Q17: What sorts of thing you communicate with your supplier? Or, What are the issues that you are exploring in your communication with this supplier? 289 Q18: What are the impacts of communication in your import supply relationship? Explain please Q19: Do you think that culture is a factor in your import supply relationship? Why? Why not? Q20: What benefits you get when you import from a culturally similar (market) supplier? How? Explain please Q21: Is there any problem, if you are importing from a dissimilar culture (market)? Why? Explain please Q22: Do you have any other comments on your importer supplier relationship? Please state 290 Appendix – A Overall Measurement Model (using retained 39 items on purification of all individual models) err7 err8 err9 err10 err1 err2 err3 err4 com1com2com3com4 tr1 tr2 tr3 tr4.79 58 71 80.66 87.90 79 -.63 COM TR 42 err22 op5 err21 op4 -.48 68 -.19 68 err19 89 op3 93 43 op2 81 err18 op1 err20 OP err24 30 cmt2 -.06 92 55 -.37 err31 culs4 29 89 84 85 74cmt5 26 -.19 -.47 err30 culs3 CULS cmt7 err17 tsi1 err43 -.46 77 86 -.22.38 TS 41 34 66 err16 -.35 33 -.41 61 -.28 28 71 cmt3 err14 92 29 -.27 CMT cmt4 err15 42 35 16 84 38 80 40 65 env3 59 72 EN env2 64 err23 env1 err32 culs5 err13 69 err27 env5 err26 env4 err25 48 -.40 53 tsi3 err45 66 tsi4 err46 30 83 err28 culs1 47 SC tsi6 err48 62 78.81 77 sc5 sc3 sc2 sc1 er55 kex5 er49 er51er50 err42 KNEX 81 80 83 kex3 kex2 kex1 err40 err39 err38 291 Appendix – B Proposed Structural Model err7 err8 33 err9 err11 50 err1 err2 err3 err4 73 46 64 90 76 85 77 39 68 30 CM 46 op5 47 res4 68 69 op4 79 04 err22 err21 89 93 86 err20 op3 err19 op2 err24 -.54 18 02 54 91 CMT 92 19 84 80 64 72 env2 41 64 EN 83 cmt3.84 err14 cmt4 err15 84 73 -.12 53 -.20 cmt7 err17 03 -.02 59 tsi1 err43 29 30 err32 culs5 -.30 71 31 89 culs4 84 -.23 51 71 err30 culs3 86 TS tsi3 err45 66 44 83 30 -.47 70 tsi6 err48 S.C 81 62 78 38 38 61 66 74 tsi4 err46 41 66 44 34 err28 culs1 77 34 28 CUL 71 cmt5 err16 29 79 46 21 cmt2 46 err13 15 68 res3 32 81 65 -.08 op1 71 err23 env1 err31 res1 TR OP err18 err27 env5.64 err26 env4.41 43 err25 env3.52 58 tr1 tr2 tr3 tr4 com1 com2 com3 com4 57 70 80 59 81 76 58 KNEX 81 80 83 66 64 69 s.c5 s.c3 s.c2 s.c1 kex5 kex3 kex2 kex1 err37 err35 err34 err33 err42 err40 err39 err38 292 Appendix – C Modified Proposed Structural Model (Reported in this Thesis) err7 err8 err9 err11 34 64 50 err1 err2 err3 err4 75 45 91 78 87.79 45 58 71 80 67 25 op5.47 err22 err20 res4 -.31 68 op4.78 69 38 89 op3 87 93 OP err19 op2 81 err21 -.52 19 err24 err23 68 res3 32 56 91 CMT.92 02 29 -.19 03 30 -.46 33 38 TS CUL 74 tsi3 err45 66 44 tsi4 err46 83 30 70 tsi6 err48 SC err37 77 86 err28 culs1 sc5 59 tsi1 err43 66 44 34 47 22 cmt4 err15 28 culs4 err31-.22 err30 culs3 cmt3 84 err14 cmt7 err17 -.01 32 89 84 51 71 83 84 71 73cmt5 err16 54 -.12 79 31 err32 culs5 71-.28 cmt2 47 err13 16 06 84 80 65 -.25 72 env2.41 EN 64 env1-.25 res1 TR 65 err18-.06 op1.71 err27 env5.64 err26 env4.42 43 err25 env3.52 61 tr1 tr2 tr3 tr4 com1 com2 com3 com4 CM 46 62 82 81 62 78 39 60 sc3 sc2 65 77 59 KNEX 81 80 83 66 63 69 sc1 42 kex5 kex3 kex2 kex1 err35 err34 err33 err42 err40 err39 err38 293 Appendix – D Modified Competing Model (Not reported in this Thesis) err7 err8 35 err33 err34 err35 err36 err9 err11 50 63 43 63 sc1 com1 com2 com3 com4 62 sc2 err1 err2 err3 err4 CM 59 err42 kex5 76 82 61 sc3 45 80 79 61 22 59 71 79 65 21 res2 38 47 90 78 87.78 22 44 res8 77 34 25 67 82 err40 kex3.80 KNEX 64 82 SC res7 60 45 25 46 91 46 -.52 err32 culs5.71 89 culs4 84 52 72 CUL cmt7 err17 -.56 -.41 31 -.24 err20 err19 err18 60 tsi1 err43 77 75 87 46 err21 10 -.04 err28 culs1 op5.47 err14 cmt3 84 84 70 72cmt5 err16 52 18 67 44 83 CMT.92 cmt4 err15 err38 kex1 err30 culs3 err13 res1 67 res3 68 79 cmt2 41 err39 kex2 err22 sc5 tr1 tr2 tr3 tr4 TR err31 21 -.20 TS tsi3 err45 66 43 tsi4 err46 res4 68 83 op4.79 -.29 69 31 68 89 41 op3 87 93 OP 13 64 env1.52 err23 tsi6 err48 op2 81 72 env2.41 err24 65 EN 64 op1 80env3 err25 64 84 env4.71 err26 env5 err27 294 Appendix – SEM Output for Hypothesised Relationships in the Competing Model Paths Hypotheses SEM Output: Proposed Competing Model Estimate (β) S.E C.R (t) H1 The greater the perceived cultural similarity between importer and the import supplier, the better the communication P SEM Output: Modified Competing Model ** Estimate (β) S.E C.R (t) Results* P CUL CM 444 093 4.75 *** 490 097 5.07 *** Supported H2 The higher the cultural similarity, the greater the importer knowledge and experience in their relationship CUL KNEX 355 087 4.08 *** 185 083 2.23 03 Supported H3 The more the communication in importer supplier relationship, the greater the knowledge and experience in their relationship CM KNEX 144 084 1.73 08 212 080 2.66 01 Supported H4 The greater the importer’s knowledge and experience in the relationship, the stronger will be the trust KNEX TR 234 058 4.01 *** 236 059 4.03 *** Supported H5 The greater the supplier’s opportunism in their relationship, the lower will be the importer’s trust OP TR -.332 039 -8.49 *** -.331 040 -8.34 *** Supported H6 The higher the importer’s trust in the supplier, the greater will be the commitment to an import supplier TR CMT 222 062 3.57 *** 201 063 3.21 001 Supported H7 The greater the importer’s perceived relative competency of a specific supplier, the stronger the importer’s commitment to the supplier SC CMT 336 065 5.17 *** 367 065 5.62 *** Supported The greater the environmental volatility in international markets, the greater the overseas supplier’s opportunism EN OP 390 156 2.50 01 285 140 2.04 04 Supported H9 The greater the environmental volatility, the lower the importer’s commitment to the supplier EN CMT -.232 067 -3.44 *** -.238 068 -3.51 *** Supported H10 The greater the transaction-specific investment by the importer, the higher the importer’s commitment to the supplier TS CMT 050 034 1.45 15 055 033 1.69 09 Mixed Support H11 The greater the supplier’s opportunism in their relationship, the lower will be the importer’s commitment OP CMT -.013 034 -.373 71 -.020 035 -.582 56 Not Supported 12 13 14 Relating new path: High degree of CM decreases the OP CM EN KNEX OP KNEX SC -.829 138 -6.00 *** Supported -.546 099 -5.48 *** Supported 399 068 5.86 *** Supported H8 Relating new path: High degree of EN affects KNEX Relating new path: Higher the KNEX higher the SC * Results Supported at Significance Level: p ≤ 001, p ≤ 01, p ≤ 05, and p ≤ 10 ** Based on suggested modifications in initial SEM analysis of proposed competing model, three paths were added including three covariances in the modified competing model 295 Appendix – A Hierarchical Regression Model Summary – 1: Cultural Similarity Variables Models Constant 4.441 5.504 3.018 2.494 3.357 1.933 Cultural Similarity 355*** 237*** 173** 144* 084 056 Opportunism -.294*** Trust -.100 -.073 -.074 -.027 384*** 352*** 322*** 205*** 145* 177** 184*** -.245*** -.213*** 37(26.09) 44(29.31) Communication Env Volatility Supplier’s Competencies R2 (F Value) 318*** 13(33.21) 20(28.40) 30(31.73) 31(25.55) Dependent Variable: Commitment; Significance level ***P≤ 001, **P≤ 01, *P≤ 05 Appendix – B Hierarchical Regression Model Summary – 2: Environmental Volatility Variables Models Constant 2.281 5.269 7.852 8.939 9.947 Env Volatility 112 γ 016 -.023 004 -.014 -.315*** -.228*** -.170** -.307*** -.273*** -.124* -.251*** -.146** Cultural Similarity -.397*** Supplier’s Competencies Communication Trust -.392*** R (F Value) 013(2.91) 161(21.97) 246(24.74) 299(24.20) 398(29.85) Dependent Variable: Opportunism; Significance level ***P≤ 001, **P≤ 01, *P≤ 05 and γ P≤ 10 Appendix – C Hierarchical Regression Model Summary – 3: Opportunism Variables Constant Opportunism Models 6.745 3.659 2.895 3.636 3.357 1.933 -.389*** -.148* -.107 -.092 -.074 -.027 420*** 374*** 332*** 322*** 205*** Trust Communication 174** Env Volatility 196*** 177** 184*** -.262*** -.245*** -.213*** 084 056 Cultural Similarity Supplier’s Competencies R (F Value) 318*** 15(41.07) 27(42.39) 29(31.72) 36(32.03) 37(26.09) 44(29.31) Dependent Variable: Commitment; Significance level *** P≤ 001, **P≤ 01 and *P≤ 05 296 ...Title: Antecedents of Commitment to an Import Supplier Saleh @ 2006 Key Words: Antecedents of commitment Importer’s commitment Importer supplier relationship Mediating role of trust Cultural... perspective of importer commitment to an import supplier combining all relevant elements The conceptual definition of commitment to an import supplier adopted for this study is the extent to which an importer... economic theories to gain a better understanding of an importer’s commitment to an import supplier, and thereby contributes to an understanding of the nature of generalisability of the theories