Customer Satisfaction in Transnational Buyer-supplier Relationships Customer Satisfaction in Transnational Buyer-supplier Relationships an Important Indicator of Successful Relationship Management Is a Customer's Satisfaction Basic Theories of Customer Satisfaction

This study analyzes customer satisfaction in buyer-supplier relationships across national boundaries (transnational business relationships) with manufacturing firms on both sid es of the dyad. The analysis is based on data from 511 industrial customers from the United States and Germany, 201 of which reported on a transnational relationship. Results indicate that quality and flexibility are important antecedents of customer satisfaction. These antecedents of customer satisfaction were significantly lower in transnational relationships than in domestic ones. Using equity theory and the confirmation/disconfirmation paradigm, the authors develop alternative models for describing the relationships between customer satisfaction and its antecedents in transnational as opposed to domestic relationships. Findings reveal that there are no structural differences between transnational and domestic relationships concerning the relationships between customer satisfaction and its antecedents. Specifically, a lower level of customer satisfaction in transnational relationships is due to lower levels of the antecedents and does not constitute an effect of transnationality per se. The importance of international trade has increased significantly in the past decade. Consequently, the extent of firm involvement in international business and international business-to-business relationships has been growing considerably. Although international trade is still on the rise and many firms aim at internationalizing their business, they must cope with several difficulties in international business activities such as cultural differences, communication problems, and geographical distances As compared with purely domestic situations, relationships involving partners from different countries (transnational relationships) are generally more satisfied customers, on the other hand, are manifold. Examples include repeat purchases, positive word-of-mouth, and reduced price elasticity (e. the stronger competitive positio n of firms with satisfied customers results in higher market share and profit. Hence, customer satisfaction is an important facet of business relationships and a measure of success of relationship management activities (Mohr and Spekman 1994). Evidence that firms have recognized the benefits derived from satisfied customers include growing interest in customer retention programs, zero migration activities, and customer clubs (Reichheld 1996). In academia, research in customer satisfaction emerged in the early 1970s and has continually 3 evolved since then. Researchers have investigated expectations of customers (e. The literature provides theoretical insights into the customer satisfaction formation process in the context of consumer products and services (e.g., Anderson 1973, Oliver 1980). Other research has explored customer satisfaction in business-to-business exchange. However, most of this research has been conducted in a channels context (e. thus exploring the distributor's satisfaction with a manufacturer. Surprisingly …