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Model of Relationship Marketing and Power Asymmetry in Indonesia Retail Industry

Author

Listed:
  • Anton A. Setyawan
  • Basu Swastha Dharmmesta
  • BÎœ Purwanto
  • Sahid Susilo Nugroho

Abstract

This paper discuss empirical model of business relationship in Indonesia retail industry. Empirical framework of this paper based on relationship marketing concept and power imbalance of retail industry. The purpose of this study is to assess the effect of Power asymmetry and relationship marketing to supplier and retailer economic performance in a business relationship. Result of this paper is empirical framework to analyze Indonesia retail industry. We analyze our empirical model by using Path Analysis. Samples of this study are retailers and suppliers in three major cities in Indonesia, they are Semarang, Surakarta and Jogjakarta. Our unit analysis is dyadic based on the nature concept of relationship marketing proposed by Morgan and Hunt (1994). Main construct of business relationship and technical model of estimation to conduct research about relationship marketing and power imbalance in Indonesia retail industry is also discussed.

Suggested Citation

  • Anton A. Setyawan & Basu Swastha Dharmmesta & BÎœ Purwanto & Sahid Susilo Nugroho, 2015. "Model of Relationship Marketing and Power Asymmetry in Indonesia Retail Industry," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 108-127.
    • Handle: RePEc:ers:ijebaa:v:iii:y:2015:i:1:p:108-127
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    References listed on IDEAS

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