ROLE OF SERVICE QUALITY IN B-TO-B RELATIONSHIP PERFORMANCE: SCALE DEVELOPMENT AND B-SERVQUAL MODEL

Abstract

Even in the business-to-business markets, service quality is becoming very important factor which determines success or failure of the long-term business relationship. Our study aims to reveal how such recognized B-to-B 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 B-to-B service quality and (2) investigate the structural model which deals with the relation between the service quality and business relationship performance. Considering that most previous researches about service quality were conducted in the business-to-consumer(B-to-C) area, this study conceptualizes the various quality aspects of service that are considered in B-to-B market and proposes B-SERVQUAL model which is the detailed quality measurement scale of B-to-B service. We developed a measurement scale called B-SERVQUAL for B-to-B service quality and tested research hypotheses and structural model. We found that 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. Relationship bonding has a positive effect on commitment. Relationship commitment appeared to be an important factor that has a positive effect on relationship performance, which demonstrates the reduction of management cost through commitment. This study reflected the economic and convenience aspects of services that haven’t been highlighted in the previous studies in the business marketing area. This study has academic implications in that it reflected the economic aspects of services, which have been dealt with conceptually by some scholars such as profitability, productivity, and cost. From the viewpoint of B2B service providers, the B-SERVQUAL proposed in this study will be helpful guide for service providers to specifically identify the customers’ needs and manage their service quality in the business market.