The impact of psychological contracts on trust and commitment in supplier-distributor relationships

Purpose – The nurturing of trust within firm-customer relationships highlights the significance of social exchange theory in helping to explain the relational paradigm. By focusing upon this theory it was hypothesized that psychological contracts also play an important role in helping manage custome...

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Main Authors: Kingshott, Russel, Pecotich, A.
Format: Journal Article
Published: Emerald Group Publishing Limited 2007
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/19975
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author Kingshott, Russel
Pecotich, A.
author_facet Kingshott, Russel
Pecotich, A.
author_sort Kingshott, Russel
building Curtin Institutional Repository
collection Online Access
description Purpose – The nurturing of trust within firm-customer relationships highlights the significance of social exchange theory in helping to explain the relational paradigm. By focusing upon this theory it was hypothesized that psychological contracts also play an important role in helping manage customer relationships. The principal purpose of this study is to explore the role of the psychological contract within the firm-customer relationship, and its effects on trust. Design/methodology/approach – A sample of 343 distributor firms within the motorized vehicle industry was used to test a model developed on the basis of social exchange theory. Findings – Psychological contracts are perceptual in nature and encompass reciprocal obligations stemming from the relational marketing efforts between suppliers and distributors. This construct was shown to have a positive impact upon the level of trust and commitment within the relationship; however, perceived violations of the contract terms were found to reduce the distributor’s level of trust. Originality/value – Given that trust was found to increase commitment, these findings have important managerial implications as they show that psychological contracts will erode important customer relationships if not factored into the customer decision-making processes within the firm.
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spelling curtin-20.500.11937-199752017-09-13T16:00:43Z The impact of psychological contracts on trust and commitment in supplier-distributor relationships Kingshott, Russel Pecotich, A. Trust Relationship marketing Psychological contracts Purpose – The nurturing of trust within firm-customer relationships highlights the significance of social exchange theory in helping to explain the relational paradigm. By focusing upon this theory it was hypothesized that psychological contracts also play an important role in helping manage customer relationships. The principal purpose of this study is to explore the role of the psychological contract within the firm-customer relationship, and its effects on trust. Design/methodology/approach – A sample of 343 distributor firms within the motorized vehicle industry was used to test a model developed on the basis of social exchange theory. Findings – Psychological contracts are perceptual in nature and encompass reciprocal obligations stemming from the relational marketing efforts between suppliers and distributors. This construct was shown to have a positive impact upon the level of trust and commitment within the relationship; however, perceived violations of the contract terms were found to reduce the distributor’s level of trust. Originality/value – Given that trust was found to increase commitment, these findings have important managerial implications as they show that psychological contracts will erode important customer relationships if not factored into the customer decision-making processes within the firm. 2007 Journal Article http://hdl.handle.net/20.500.11937/19975 10.1108/03090560710773345 Emerald Group Publishing Limited restricted
spellingShingle Trust
Relationship marketing
Psychological contracts
Kingshott, Russel
Pecotich, A.
The impact of psychological contracts on trust and commitment in supplier-distributor relationships
title The impact of psychological contracts on trust and commitment in supplier-distributor relationships
title_full The impact of psychological contracts on trust and commitment in supplier-distributor relationships
title_fullStr The impact of psychological contracts on trust and commitment in supplier-distributor relationships
title_full_unstemmed The impact of psychological contracts on trust and commitment in supplier-distributor relationships
title_short The impact of psychological contracts on trust and commitment in supplier-distributor relationships
title_sort impact of psychological contracts on trust and commitment in supplier-distributor relationships
topic Trust
Relationship marketing
Psychological contracts
url http://hdl.handle.net/20.500.11937/19975