Factors Influencing Supplier Share Allocations in an Overseas Chinese Context

Recent international attention has been drawn to marketing opportunities in Asia and the important role of customer relationships in supplier performance. However, empirical research on industrial buying behavior in Asia is sparse, and the extant literature indicates that buyer behavior may differ in non-Western industrial marketing relationships. Drawing on transaction cost economics and relational exchange theory, the authors develop a model that provides new insights into how international supplier behaviors affect manufacturer trust–performance perceptions and their business share allocation in a Chinese-dominated business environment. The results from 340 industrial relationships indicate the significant role of communications and adaptations in relationship development. Moreover, trust in suppliers and their performance are equally important factors in a manufacturer's business share allocation. The study contributes to the generalizability of relationship marketing theory and practice through empirical evidence on the transferability of Western business concepts.