Exploring Relationship Value through Second-Order Model and Importance-Performance Map

Prita Prasetya; Mukhamad Najib; Teuku Fajar Akbar Darmawan

doi:10.22441/jurnal_mix.2025.v15i3.003

Exploring Relationship Value through Second-Order Model and Importance-Performance Map

Prita Prasetya, Mukhamad Najib, Teuku Fajar Akbar Darmawan

Abstract

Objectives: This research aims to examine the direct impact of relationship value (RV) on distributor satisfaction through a second-order analysis using structural equation modeling (SEM). The study focuses on understanding how various dimensions of RV contribute to enhancing satisfaction among distributors.
Methodology: A cross-sectional survey was conducted, collecting data from 193 middle-class distributors. The analysis employs a second-order model to explore the relationships between RV dimensions and distributor satisfaction, while also utilizing Importance-Performance Map Analysis (IPMA) to identify key areas for improvement.
Finding: The results confirm the direct influence of RV on distributor satisfaction. The second-order model effectively identifies several critical dimensions of RV that significantly enhance satisfaction. IPMA results highlight that strengthening distributor reliance on sellers by providing more valuable market insights can boost satisfaction. Additionally, RV supported by seller expertise and timely market entry can foster stronger relationships with principals.
Conclusion: This study offers valuable insights for managers, recommending a focus on the most critical dimensions of RV to improve distributor satisfaction and overall performance. By enhancing support and expertise, companies can build more positive and lasting relationships with their distributors.

Keywords

Distributor; IPMA; Relationship Value; Satisfaction; Second-order Model

Full Text:

PDF

References

Anderson, J.C. & Narus, J. (1998). Business Marketing : Understand What Customers Value. Harvard Business Review, November-December, 98601.

Badenhorst-Weiss, J. A., & Tolmay, A. S. (2016). Relationship value, trust and supplier retention in South African automotive supply chains. Journal of Applied Business Research, 32(5), 1329–1340. https://doi.org/10.19030/jabr.v32i5.9762

Biggemann, S., & Buttle, F. (2012). Intrinsic value of business-to-business relationships: An empirical taxonomy. Journal of Business Research, 65(8), 1132–1138. https://doi.org/10.1016/j.jbusres.2011.08.004

Čater, B., & Čater, T. (2009). Relationship-value-based antecedents of customer satisfaction and loyalty in manufacturing. Journal of Business and Industrial Marketing, 24(8), 585–597. https://doi.org/10.1108/08858620910999457

Cui, Y. Y., & Coenen, C. (2016). Relationship value in outsourced FM services – value dimensions and drivers. February. https://doi.org/10.1108/F-01-2014-0011

Eggert, A., & Ulaga, W. (2002). Customer perceived value: A substitute for satisfaction in business markets? Journal of Business & Industrial Marketing, 17(2–3), 107–118. https://doi.org/10.1108/08858620210419754

Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39−50.

Gandhi, A., Shaikh, A., & Sheorey, P. (2017). Impact of supply chain management practices on firm performance: Empirical evidence from a developing country. International Journal of Retail & Distribution Management, 45(4), 366–384. https://doi.org/10.1108/IJRDM-06-2015-0076

Gandhi, S. K., Sachdeva, A., & Gupta, A. (2019). Impact of Service Quality on Satisfaction and Loyalty at Manufacturer-Distributor Dyad. Journal of Advances in Management Research, 16(1), 91–122. https://doi.org/10.1108/jamr-12-2017-0120

Golicic, S. L., & John T. Mentzer. (2006). An Empirical Examination of Relationship Magnitude. Journal of Business Logistics, 27(1), 81–107. https://doi.org/10.1002/j.2158-1592.2004.tb00170.x

Golicic, S. L., Mentzer, J. T., Randheer, K., Singh, V., Aggarwal, P., Li, J., Pan, Q., You, P., Feng, T., Liu, S., Cai, X., Zhong, C., Yin, Y., & Lai, W. (2020). Perceived Quality of Urban Wetland Parks: A Second-Order Factor Structure Equation Modeling. International Review of Management and Marketing, 27(2), 7204. https://doi.org/10.3390/su12177204

Guo, C., & Wang, Y. J. (2015). How manufacturer market orientation influences B2B customer satisfaction and retention: empirical investigation of the three market orientation components. Journal of Business & Industrial Marketing, 30(2), 182–193. https://doi.org/10.1108/JBIM-03-2012-0042

Guo, C., Wang, Y., & Zhu, Y. (2016). Distributor Orientation and Channel Profitability for Manufacturing-Centered SMEs. Journal of Research in Marketing and Entrepreneurship, 18(2), 197–210. https://doi.org/10.1108/jrme-11-2014-0029

Hair, J.F., Hult, G.T.M., Ringle, C. dan Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (2nd ed.). Sage Publications.

Henseler, J., Ringle, C.M. and Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135.

Itani, O. S., Agnihotri, R., & Dingus, R. (2017). Social media use in B2b sales and its impact on competitive intelligence collection and adaptive selling: Examining the role of learning orientation as an enabler. Industrial Marketing Management, 66, 64–79. https://doi.org/10.1016/j.indmarman.2017.06.012

Keskar, A., & (India), M. P. (2018). Relationship Value – A Study of Various Published Articles. Indian Journal of Commerce & Management Studies, IX(2), 96. https://doi.org/10.18843/ijcms/v9i2/11

Kumar, R., & Sharma, A. (2022). The impact of social media on sales performance: A study of sales professionals. International Journal of Sales & Marketing Management, 5(1), 68–79.

Lai, C. S., Chan, D. Y. C., Yang, C. F., & Hsu, W. C. (2015). The value creation scale of supplier-distributor relationship in international markets. Journal of Business and Industrial Marketing, 30(2), 171–181. https://doi.org/10.1108/JBIM-11-2011-0166

Lewin, J., Barry, J., & Terry, T. S. (2008). Empirical study of relationship value in industrial services. Journal of Business & Industrial Marketing, 23(4), 228–241. https://doi.org/10.1108/08858620810865807

Li, M., Wu, C., Zhang, L., Tho, N. D., & Nguyen, T. T. M. (2011). An Intuitionistic Fuzzy-Todim Method to Solve Distributor Evaluation and Selection Problem. International Journal of Simulation Modelling, 30(4), 511–524. https://doi.org/10.1108/02621711111126800

Lian, S. B., & Yoong, L. C. (2017). The Effectiveness of Strategic Relationship Marketing: Exploring Relationship Quality towards Customer Loyalty. International Business Research, 10(12), 159. https://doi.org/10.5539/ibr.v10n12p159

Nachum, L. (2021). Value Distribution and Markets for Social Justice in Global Value Chains: Interdependence Relationships and Government Policy. Journal of International Business Policy, 4(4), 541–563. https://doi.org/10.1057/s42214-021-00105-w

Nachum, L., Wan, Z., Wu, B., Zhang, T. F., Yuan, J., Li, X. Z., Wu, Y.-J., Hou, J.-L., Randheer, K., Golicic, S. L., Mentzer, J. T., Singh, V., Aggarwal, P., Li, J., Pan, Q., You, P., Feng, T., Liu, S., Cai, X., … Lai, W. (2021). Perceived Quality of Urban Wetland Parks: A Second-Order Factor Structure Equation Modeling. International Review of Management and Marketing, 27(2), 7204. https://doi.org/10.1287/mnsc.2015.2356

Nguyen, T. D., & Nguyen, T. T. M. (2011). Enhancing relationship value between manufacturers and distributors through personal interaction: Evidence from Vietnam. Journal of Management Development, 30(4), 316–328. https://doi.org/10.1108/02621711111126800

Parmata, U. M. D., Rao, B. S., & RajaShekhar, B. (2016). Measuring Service Quality in Pharmaceutical Supply Chain – Distributor’s Perspective. International Journal of Pharmaceutical and Healthcare Marketing, 10(3), 258–284. https://doi.org/10.1108/ijphm-07-2015-0035

Pimpa, N. (2008). Relationship value in thai business-to-business marketing. Journal of Asia-Pacific Business, 9(3), 235–247. https://doi.org/10.1080/10599230802262443

Prasetya, P., & Wibawa, B. (2020). The empirical study of personal value and business performance in supply chain collaboration. Uncertain Supply Chain Management, 8(4), 729–738.

Randheer, K. (2021). Omni and Multi-Channel: Relationship With Utilitarian/Hedonic Benefits, Shopping Value and Channel Patronage. International Review of Management and Marketing, 11(2), 11–22. https://doi.org/10.32479/irmm.11215

Ruiz-Martínez, A., Frasquet, M., & Gil-Saura, I. (2019). How to measure B2B relationship value to increase satisfaction and loyalty. Journal of Business and Industrial Marketing, 34(8), 1866–1878. https://doi.org/10.1108/JBIM-10-2018-0289

Sarstedt, M., Ringle, C. M., & Hair, J. F. (2020). Handbook of Market Research. In Handbook of Market Research (Issue July). https://doi.org/10.1007/978-3-319-05542-8

Sharma, N., Lai, C.-S., Chan, D. Y.-C., Yang, C.-F., Hsu, W.-C., Prasetya, P., Najib, M., Soehadi, A. W., Djohar, S., Barry, J., Terry, T., Prasetya, P., Yoong, L. C., Lian, S., Subramaniam, M., Xia, Y., Chae, S. W., Cui, Y. Y., Coenen, C., … Xu, Y. (2006). The Value of Long-Term Co-Innovation Relationships: Experiential Approach. Journal of Marketing, 13(2), 1392–1422. https://doi.org/10.1108/08858620810865807

Sharma, P., Kingshott, R., Leung, T. Y., & Malik, A. (2022). Dark side of business-to-business (B2B) relationships. Journal of Business Research, 144, 1186–1195. https://doi.org/10.1016/j.jbusres.2022.02.066

Srivastava, V., & Singh, T. (2010). Value creation through relationship closeness. Journal of Strategic Marketing, 18(1), 3–17. https://doi.org/10.1080/09652540903511274

Ulaga, W., & Eggert, A. (2005). Relationship Value in Business Markets: The Construct and Its Dimensions. Journal of Business-to-Business Marketing, 12(1), 73–99. https://doi.org/10.1300/J033v12n01_04

Ulaga, W., & Eggert, A. (2006). Relationship value and relationship quality: Broadening the nomological network of business-to-business relationships. European Journal of Marketing, 40(3–4), 311–327. https://doi.org/10.1108/03090560610648075

Vázquez-Casielles, R., Iglesias, V., & Varela-Neira, C. (2017). Manufacturer–distributor relationships: role of relationship-specific investment and dependence types. Journal of Business and Industrial Marketing, 32(8), 1245–1260. https://doi.org/10.1108/JBIM-10-2016-0244

Wan, Z., & Wu, B. (2017). When Suppliers Climb the Value Chain: A Theory of Value Distribution in Vertical Relationships. Management Science, 63(2), 477–496. https://doi.org/10.1287/mnsc.2015.2356

Wang, M., Zhao, D., Gu, F. F., Obadia, C., Bello, D. C., Gilliland, D. I., Sharma, D., Sahay, B. S., Sachan, A., Obadia, C., Vida, I., Grewal, R., Kumar, A., Mallapragada, G., Saini, A., Gandhi, S. K., Sachdeva, A., Gupta, A., Vázquez‐Casielles, R., … Neira, C. V. (2015). Impact of Service Quality on Satisfaction and Loyalty at Manufacturer-Distributor Dyad. Asia Pacific Journal of Marketing and Logistics, 16(3), 1245–1260. https://doi.org/10.1057/jibs.2015.17

Weitz, B. A., & Jap, S. O. (1995). Relationship Marketing and Distribution Channels. 23(4), 305–320.

Wilson, D. T., & Jantrania, S. (1994). Understanding the Value of a Relationship. Asia-Australia Marketing Journal, 2(1), 55–66. https://doi.org/10.1016/S1320-1646(94)70278-1

Zhang, H., Han, X., Zheng, S., Gu, M., Wang, L., Jin, J. L., Yang, D.-L., Shi, X., Zhang, W., Qian, C., Dion, P. A., Wagner, R., Seuring, S., & Ungan, M. C. (2023). The interplay of contracts and trust: untangling between- and within-dyad effects. Marketing ì Menedžment Ìnnovacìj, 57(03), 1208–1215. https://doi.org/10.3389/fpsyg.2022.1104770

Zhang, J., & Du, M. (2018). Understanding the Reasons for Customer Relationship Termination: Empirical Evidence From Chinese B2B Firms. International Journal of Information, Business and Management, 10(1), 14–35.

DOI: http://dx.doi.org/10.22441/jurnal_mix.2025.v15i3.003