Role of Service Quality in B2B Relationship Performance: Scale Development and B-SERVQUAL Model

Abstract

Even in the business-to-business(B2B) markets, service quality is becoming very important factor which determines success or failure of the long-term business relationship. Considering that most previous researches about service quality were conducted in the business-to-consumer (B2C) area, this study conceptualizes the various quality aspects of service that are considered in B2B market and proposes B-SERVQUAL which is the detailed quality measurement scale of B2B service. Our study aims to reveal how such recognized service quality influences on realizing the relationship between the customer and the supplier. We began this research with two main objectives: (1) develop the service quality scale to facilitate assessments of B2B service quality and (2) investigate the structural model which deals with the relation between the service quality and business relationship performance. Service quality has a positive effect on relationship bonding, indicating that the superior service quality of service providers leads relationship bonding with buyers. Five dimensions considered in this study bring not only structural bond but also the social bond that refers to the emotional bonding. Especially, we assumed that the empathy quality, a human factor in service quality, plays an important role in binding sellers and buyers personally and emotionally. Technical quality and the process quality related to service delivery are closely associated with the technical level of the service provided, so the service quality structurally binds the relationship between companies. In addition, service quality has a greater effect on structural bond than social bond, which implies that service quality is emphasized as core elements that bring economic, strategic, technical, and organizational benefits in B2B trading rather than be seen as a catalyst to accelerate trading or supplementary elements to the products. Structural bond in relationship bonding is an antecedent of social bond. Relationship bonding has been studied in 2 categories traditionally. This study could identify a casual relation between them. The findings from the study demonstrate that the structural bond is developed when clear economic and managerial advantages exist for buyers, and then the social bond is formed based upon this. In other words, structural bond is a positive predictor of social bond or emotional bond. As suggested earlier, service quality has a greater effect on structural bond than social bond, which supports a structural casual relation in which the structural bond is accomplished first through service and then, based upon this, social bond is accomplished. Commitment appeared to be an important factor that has a positive effect on relationship performance, which demonstrates the experience and the reduction of management cost through commitment is the antecedent that brings the relationship performance which is defined as the degree of the effectiveness and efficiency from mutual organization exchange activities. Managerial implications and limitations of the study were also discussed in detail.