The impact of market orientation on Indonesian manufacturer-distributor relationships

Market orientation delivered inconsistent results in marketing channels of developing economies where power imbalances exist between members. This study investigates the impact of market orientation on manufacturer-distributor relationships in Indonesia as a developing country with high industrial concentration. A Structural Equation Modeling analysis on 140 manufacturers revealed market orientation and long-term orientation were joint drivers that determined satisfaction and trust via dependence and role performance constructs. This suggests that to achieve relationship quality in channels characterized by trust and satisfaction, a market orientation view should be combined with an intention of manufacturer to build a longer term relationship with distributor.

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12th International Decision Sciences Institute Conference and 18th Asia Pacific Decision Sciences Institute Conference

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