The importance of corporate and salesperson expertise and trust in building loyal business-to-business relationships in China. Issue 2 (2nd April 2016) - Newell, Stephen J.
Abstract : International relationships are critical to business success in this increasingly interdependent world. China is the world's second largest economy and may soon overtake the United States in the near future. Thus, it becomes important for potential trading partners to understand how to effectively develop and maintain business relationships with this growing economic entity. In this study, we surveyed Chinese business people with purchasing responsibilities to better understand the dynamics of their business-to-business relationships. The data were empirically analyzed using structural equation modeling to test the interrelationship between perceptions of salesperson and corporate expertise, trust and loyalty. The results suggest that trust and expertise play key roles in developing long-term business-to-business associations in China. Managerial implications are discussed and avenues of future research are proposed.