The mediating effects of buyer-supplier relationship on relationship of trust and commitment, and organization performance of agriculture based SMEs in Kelantan

The mediating effects of buyer-supplier relationship on relationship of trust and commitment, and organization performance of agriculture based SMEs in Kelantan

Previous studies had justified that buyer-supplier relationship has a positive relationship with organization performance of SMEs. Plus, the positive relationship between trust and buyer-supplier relationship of SMEs also has been indicated in a past studies. However, not many researches were done t...

Full description

Saved in:
Bibliographic Details
Main Author: Nor Zawani, Mamat @ Ibrahim
Format: Thesis
Language:eng
eng
Published: 2014
Subjects:
HD58.7 Organizational Behavior.
Online Access:https://etd.uum.edu.my/4138/1/s812391.pdf
https://etd.uum.edu.my/4138/13/s812391_abstract.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
id my-uum-etd.4138
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Hassan, Mohammad Ghozali
topic HD58.7 Organizational Behavior.
spellingShingle HD58.7 Organizational Behavior.
Nor Zawani, Mamat @ Ibrahim
The mediating effects of buyer-supplier relationship on relationship of trust and commitment, and organization performance of agriculture based SMEs in Kelantan
description Previous studies had justified that buyer-supplier relationship has a positive relationship with organization performance of SMEs. Plus, the positive relationship between trust and buyer-supplier relationship of SMEs also has been indicated in a past studies. However, not many researches were done to study the commitment effect on buyer-supplier relationship, and the mediating effect of buyer-supplier relationship with trust, commitment, and organization performance of SMEs. In addition, there are few researches done in primary agriculture based SMEs that are focusing on micro enterprise is and this situation needs to be changed since this sector has contributed 7.3% to the Malaysia Gross Domestic Product (GDP). This study fills up the gap by identifying the relationship of trust, commitment, buyer-supplier relationship and organization performance of primary agriculture based SME's concentrating on micro enterprise. Plus, this study has presented the hypothesis regarding this relationship. This study concentrates on SMEs' primary agriculture of micro enterprise type located in Kelantan, whereby Kelantan is the third ranking state with the most number SMEs‟ involvement in Malaysia with a total about 37, 823 SMEs. The questionnaires were distributed to 120 respondents and 100 questionnaires were returned back. However, two questionnaires had to be rejected because there were not fully completed. So, the total number of samples in this study is 98. A list of the respondents was retrieved from Jabatan Pertanian Negeri Kelantan, complete with an email address and contact number. The finding shows that there is a positive relationship between trust and commitment on buyer-supplier relationship, and there is a positive relationship between buyer-supplier relationship and organization performance of primary agriculture based SMEs in micro enterprise type. However, buyer-supplier relationship is a partial mediator of the relationship between trust and commitment to organization performance. The recommendation of the organization and future research were also discussed.
format Thesis
qualification_name masters
qualification_level Master's degree
author Nor Zawani, Mamat @ Ibrahim
author_facet Nor Zawani, Mamat @ Ibrahim
author_sort Nor Zawani, Mamat @ Ibrahim
title The mediating effects of buyer-supplier relationship on relationship of trust and commitment, and organization performance of agriculture based SMEs in Kelantan
title_short The mediating effects of buyer-supplier relationship on relationship of trust and commitment, and organization performance of agriculture based SMEs in Kelantan
title_full The mediating effects of buyer-supplier relationship on relationship of trust and commitment, and organization performance of agriculture based SMEs in Kelantan
title_fullStr The mediating effects of buyer-supplier relationship on relationship of trust and commitment, and organization performance of agriculture based SMEs in Kelantan
title_full_unstemmed The mediating effects of buyer-supplier relationship on relationship of trust and commitment, and organization performance of agriculture based SMEs in Kelantan
title_sort mediating effects of buyer-supplier relationship on relationship of trust and commitment, and organization performance of agriculture based smes in kelantan
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2014
url https://etd.uum.edu.my/4138/1/s812391.pdf
https://etd.uum.edu.my/4138/13/s812391_abstract.pdf
_version_ 1747827686140542976
spelling my-uum-etd.41382022-10-11T02:55:10Z The mediating effects of buyer-supplier relationship on relationship of trust and commitment, and organization performance of agriculture based SMEs in Kelantan 2014 Nor Zawani, Mamat @ Ibrahim Hassan, Mohammad Ghozali Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HD58.7 Organizational Behavior. Previous studies had justified that buyer-supplier relationship has a positive relationship with organization performance of SMEs. Plus, the positive relationship between trust and buyer-supplier relationship of SMEs also has been indicated in a past studies. However, not many researches were done to study the commitment effect on buyer-supplier relationship, and the mediating effect of buyer-supplier relationship with trust, commitment, and organization performance of SMEs. In addition, there are few researches done in primary agriculture based SMEs that are focusing on micro enterprise is and this situation needs to be changed since this sector has contributed 7.3% to the Malaysia Gross Domestic Product (GDP). This study fills up the gap by identifying the relationship of trust, commitment, buyer-supplier relationship and organization performance of primary agriculture based SME's concentrating on micro enterprise. Plus, this study has presented the hypothesis regarding this relationship. This study concentrates on SMEs' primary agriculture of micro enterprise type located in Kelantan, whereby Kelantan is the third ranking state with the most number SMEs‟ involvement in Malaysia with a total about 37, 823 SMEs. The questionnaires were distributed to 120 respondents and 100 questionnaires were returned back. However, two questionnaires had to be rejected because there were not fully completed. So, the total number of samples in this study is 98. A list of the respondents was retrieved from Jabatan Pertanian Negeri Kelantan, complete with an email address and contact number. The finding shows that there is a positive relationship between trust and commitment on buyer-supplier relationship, and there is a positive relationship between buyer-supplier relationship and organization performance of primary agriculture based SMEs in micro enterprise type. However, buyer-supplier relationship is a partial mediator of the relationship between trust and commitment to organization performance. The recommendation of the organization and future research were also discussed. 2014 Thesis https://etd.uum.edu.my/4138/ https://etd.uum.edu.my/4138/1/s812391.pdf text eng public https://etd.uum.edu.my/4138/13/s812391_abstract.pdf text eng public masters masters Universiti Utara Malaysia Baily, P., Farmer, D., Jessop, D., & Jones, D. (2005). Purchasing principles and management (9th ed.). Pearson Education Limited. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. Baxter, R. (2012). How can business buyers attract sellers' resources? Empirical evidence for preferred customer treatment from suppliers. New Zealand, Auckland University of Technology. Beamon, B. M. (1999). Measuring supply chain performance. International Journal of Operations and Production Management, 19(3), 275-292. Benton, Jr. W.C. (2007). Purchasing and supply chain management, Ohio: The Ohio State University. Benton, Jr. W.C. (2010). Purchasing and supply chain management (2nd ed.). Ohio: The Ohio State University. Brooks, G. (2003). Knowledge-based structure and organizational commitment. Journal of computational, 566-573. Burt, D., Petcavage, S., & Pinkerton, R. (2010).Supply Management (8th ed.). The Mc Graw Hill Companies. Carton, R. B. (2006). Measuring organizational performance: metrics for entrepreneurship and strategic management research. Edward Elgar Publishing. Denis, D. J. (2011). Simple linear regression using SPSS. University of Montana. Retrieved 23 March 2014 from http://psychweb.psy.umt.edu/denis/datadecision/front/stat_II _2011/psyx_521_simple_linear_regression_march_28.pdf. Department of Statistics Malaysia, (2014). Retrieved 14 February 2014 from http://www.statistics.gov.my/portal/index .php?option=com_content&id=526&lang=en&negeri=Kelantan. Gross Domestic Product (GDP), (2010). Retrieved 14 February 2014 from http://www.statistics.gov.my/portal/index.php? option com content & id 1300:gross-domestic-product-gdp. Doran, D. Thomas, P. & Caldwell, N. (2005). Examining buyer-supplier relationships within a service sector context. Supply Chain Management: An International Journal, 10(4), 272-277. Drẻze, J. & Stern, N. (1987). The theory of cost-benefit analysis. Handbook of Public Economic, 2. Dyer, J.F. & Chu, W. (1997). The economic value of trust in supplier-buyer relations. Massachusetts: Academy of Management Meetings in Boston. Feciková, I. (2004). An index method for measurement of customer satisfaction. The TQM Magazine, 16, 57-66. Gebert, K.G.K. (2012). Performance control in buyer-supplier-relationships: the design and use of formal management control systems. Switzerland: University of St. Gallen. Golin, A. (2004). Trust or consequences: build trust today or lose your market tomorrow. United States: American Management Association. Travel Portal to Exotic Malaysia. (2012). Retrieved 14 February 2014 from http://go2travelmalaysia.com/tour_malay sia/kltn_culture.htm. Ha, B.C., Park, Y.K., & Cho, S. (2010). Suppliers‟ affective trust and trust in competency in buyers: Its effect on collaboration and logistics efficiency. International Journal of Operations & Production Management, 31(1), 56-77. Hashim, M. K. (2005). Small and medium-sized enterprises in malaysia: Problems and prospects. Kedah: Universiti Utara Malaysia. Hassan, M. G. (2013). The impact of industrial supplier-manufacturer relationship and environmental dynamism on strategic outsourcing success. Kedah: Universti Utara Malaysia. Hill, J.A., Eckerd, S., Willson, D., & Greer, B. (2009). The effect of unethical behavior on trust in a buyer–supplier relationship:The mediating role of psychological contract violation. Journal of Operation Management, 27, 281-293. Holste, J.S. (2003). A study of the effects of affect-based trust and cognition-based trust on intra-organizational knowledge sharing and use. United States: Regent University. Howell D.A. (2012). A relational study of the knowledge sharing behaviour and organizational commitment of engineers. Hunstville: University of Alabama. Hult, G.T., Ferrel, O.C., Hurley, R.F., & Guinipero, L. C. (2000). Leadership and relationship commitment: A focus on buyer-supplier-user linkage. Industrial Marketing Management, 29, 111-119. Isa, I. M. (2010). Purchasing practice and the performance of small medium enterprise in services sector in Selangor. Kedah: Universiti Utara Malaysia. Izquierdo, C.C. & Cillán, J.G. (2004). The interaction of dependenceand trust in longterm industrial relationship. European Journal of Marketing, 38(8), 974-994. Jamal, A., & Naser, K. (2002). Customer satisfaction and retail banking: an assessment of some of the key antecedents of customer satisfaction in retail banking. International Journal of Bank Marketing, 20, 146-160. Jaussi, K. S. (2001). The Relationship between Attitudinal Commitment and Organizational Performance: An Empirical Investigation. California: University of Southern California. Jaguli, A. R. (2001). Personality Type of Malaysian Managers: The MBTI Approach. Kuala Lumpur, Universiti Putra Malaysia. Joseph, E.E. & Winston, B. E. (2004). A correlation of servant leadership, leader trust, and organizational trust.Leadership & Organization Development Journal, 26(1), 6-22. Kerr, R.M. (2012). Who are a company’s internal customers?. Oklahoma: Oklahoma State University. Kim, P.H., Dirks, K.T. & Cooper, Y.D. (2009) The repair of trust: a dynamic bilateral perspective and multilevel conceptualization. Academy of Management Review,34(3), 401-22. Krejcie, R. & Morgan, D. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30, 607-610. Laeequddin, M.,Sahay, B. S., Sahay, V., & Waheed, K. A. (2010). Measuring trust in supply chain partners' relationships. Measuring Business Excellence,14(3), 53-69. Lancastre, A., & Lages, L. F. (2006). The relationship between buyer and a B2B emarketplace: Cooperation determinants in an electronic market context. Industrial Marketing Management, 35, 774–789. Li, S., Nathan, B.R., Nathan, T.S.R., & Rao, S. S. (2006). The impact of supplychain management practices on competitive advantage and organizational performance. The International Journal of Management Science, 34, 107-124. Lovblad, M. & Hyder, A.S. (2012). Affective commitment in industrial customersupplier relations: a psychological contact approach, Journal of Business & Industrial Marketing, 27(4), 275-285. Majid, Z. (2012). The Mediating Effects of Innovation on the Relationship of Market Orientation Dimensions and ICT Small and Medium Sized Enterprises Performance. Kedah: Universiti Utara Malaysia. Media Conference Census Report on SMEs. (2011) Jabatan Perangkaan Malaysia. Kuala Lumpur: Author. Meyer, J.P. & Allen,N. J. (1991)A Three-Component Conceptualization of Organizational Commitment, Human Resource Management Review, 1(1), 61-89. Ministry of Finance Malaysia. (2011). Economic Report 2012/2013. Retrieved from http www.treasury.gov.my/index. php? option com content & view article & id2588%3Alaporan- ekonomi-20122013&catid=73%3Asenarai-laporan-ekonomi. Mishra, R. K. (2011). Buyer-supplier relationship in SMEs. Journal of Supply Chain Management, 8(3), 26-42. Morrissey, W. J. & Pittaway, L. (2006). Buyer-supplier relationships in small firms. International Small Business Journal, 23(3), 272-298. National SME Development Council. (2012). SME Annual Report 2011/2012. Kuala Lumpur: Author. National SME Development Council. (2013). SME Annual Report 2012/ 2013. Kuala Lumpur: Author. Economic Planning Unit, Prime Minister Department. (2013). New Economic Policy. Kuala Lumpur: Author. Retrieved from http://www.google.com.my/ url?sat&rct=j&q=&esrc=s&source=web&cd1&ved0CBsQFjAA&urlhttp%3A%2F%2Fwww.epu.gov.my%2Fen%2 ar-ekonomi baru&e wKhU8 wce SBa3igYAH&usgAFQjCNF8KMjHtgbgktubzw3coamXVjSRWw&bvm=bv. Parker, T. G. (2010). Online-reverse-auctions and buyer-supplier relationship: The effect if online-reverse-auction design on supplier commitment and supplier trust. Illinois: Southern Illinois University Carbondale. Prahinski, C., Benton, W.C., & Fan, Y. (2012). The Influence of Supplier development on buyer-supplier relationships. International Journal of Production and Economics, 5811-5816. Ranaweera, C. & Prabhu, J. (2003). The influence of satisfaction, trust and switching barriers on customer retention in a continuous purchasing setting. International Journal of Service Industry Management, 14(4), 374-395. Richard, P.J., Devinney, T.M., Yip, G.S., & Johnson, G. (2008). Measuring organizational performance as a dependent variable: Towards methodological best practice. Sydney: Australian School of Business Sydney. Rungtusanatham, M., Selvador, F., Forza, C., & Choi, T.Y. (2003). Supply-chain linkages and operational performance: A resource based-view perspective. International Journal of Operations and Production Management, 23(9), 1084-1099. Rutherford, B. N. (2007). The differing effect of satisfaction, trust and commitment on buyer’s behavioral loyalty: A study into the buyer-sales person and buyer-selling firm relationship in a business-to-business context. Georgia: Georgia State University. Ruyter, K.D., Moorman, L., & Lemmink, J. (2011). Antecedents of Commitment and Trust in Customer–Supplier Relationships in High Technology Markets. Industrial Marketing Management, 30, 271–286. Sahay, B. S. (2003). Understanding trust in supply chain relationships. Industrial Management & Data Systems, 553-563. Salkind, N. J. (1997). Exploring Research, (3rd ed.). New Jersey: University of Kansas. Sekaran, U. & Bougie, R. (2009). Research Methods for Business, a skill building approach, (5th ed.).Willey and Sons, Ltd, Publication. Singh, J.& Sirdeshmukh, D. (2000). Agency and Trust Mechanisms in Consumer Satisfaction and Loyalty Judgments, Journal of the Academy of Marketing and Science, 28(1), 150-167. Singh, R. (2013). Cabinet agrees to impact studies on Bumi, SME business but TPP talks continue. The Malaysian Insider. Retrieved 18 February 2014 from http://www.themalaysianinsid er.com/malaysia/article/cabinet-agrees-to-impactstudies-on- bumi-sme-businesses-but-tpp-talks-conti. Smeltzer, L. R. (1997). The meaning and origin of trust in buyer‐supplier relationships. International Journal of Purchasing and Materials Management, 33(4), 40-48. SME Magazine (2011). Main challenges facing SMEs. Retrieved on 8 June 2014 from http://smemagazine.asia/smeceoforum/SME%20100.pdf. Status Projek Usahawan Industri Asas Tani Bagi Negeri Kelantan Dari Januari Sehingga Disember. (2013). Jabatan Pertanian Negri Kelantan. Kelantan: Author. Stuart F.I., Verville J., & Taskin N. (2012). Trust in buyer-supplier relationships supplier competency, interpersonal relationships and performance outcomes. Journal of Enterprise Information Management, 25(4), 392-412. Thomas, S. (2005). An examination of buyer relationship involvement, value creation and opportunism in buyer-seller relationships. Pennsylvania: The Pennsylvania State University. Toni, A.D. & Tonchia, S. (1996). Lean organization, management by process and performance measurement.International Journal of Operations & Production Management, 16(2), 221-236. Tse, A.C.B.,Sin, L.Y.M., Yau, O.H.M.,Lee, J.S.Y., & Chow, R. (2004). A firms role in the market place and the relative importance of market orientation and relationship orientation. European Journal of Marketing, 38(9), 1158-1172. Waal, A. A. (2007). The characteristics of a high performance organization. Business Strategy Series, 8(3), 179-185. Wagner, S.M., Coley, L.S., & Lindemann, E. (2011). Effects of suppliers‟ reputation on the future of buyer–supplier relationships: the mediating roles of outcome fairness and trust. Journal of Supply Chain Management, 47(2), 29-48. Walker, K., Kutsyuruba, B., & Noonan, B. (2011). The fragility of trust in the worldof school principals.Journal of Educational Administration, 49(5), 471-494. Wells, D. L. (2003). The relationship between employee-organization cultural fit and organization performance. Mexicali: Baja California Mexico. Wong, A. & Sohal, A. (2002). An examination of the relationship between trust, commitment, and relationship quality. International Journal of Retail & Distribution Management, 30(1), 34-50. Yusoff, M.N.H. (2011). The Sources of Information of the Government Sponsored Business Assistances Among Micro-sized Entrepreneurs in Kelantan, Malaysia, International Journal of Business and Social Science, 2(3),106-114. Yu, D. (2008) The Harmonized System- Amendments and their impact on WTO members’ schedules. Economic Research and Statitstic Division. Switzerland: World Trade Organization (WTO). Zineldin, M. & Jonsson, P. (2000). An examination of the main factors affecting trust/ commitment in supplier-dealer relationships: An empirical study of the Swedish wood industry, The TQM Magazine, 12(4), 245-265.

Similar Items