Trust and commitment-based satisfaction and the impact on specific investments, formalisation and opportunism

Researchers claim that trust, commitment and satisfaction constitute core dimensions in relationship quality so important to business success. However, there does not seem to be a consensus on how these core quality constructs inter-relate, nor how they relate to important outcomes. Consequently, this study examines whether satisfaction plays a mediating role between trust and commitment and three important outcomes. Leading executives in Taiwanese manufacturing companies were contacted, and the questionnaires were analysed using confirmatory factor analysis and structural equation modelling. The empirical testing supports the proposed theory that satisfaction is a mediator between trust and commitment, and specific assets, opportunism and formalisation. All five hypotheses in the model were supported. This study makes a contribution to theory outlining as it does a set of constructs, all of which are positioned in an AMP-model (i.e., antecedents, mediating and postcedents) for the benefit of other researchers. The supported model also provides a guideline for managers in the development, management and performance of business relationships.