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Effects of Firms’ Relationship-Oriented Behaviors on Financial Performance: A Case of the Restaurant Industry

The University of Suwon, Korea, kimyong{at}suwon.ac.kr

Haemoon Oh

Iowa State University, hmoh{at}iastate.edu

Mary Gregoire

Iowa State University, mgregoir{at}iastate.edu

The business-to-business and business-to-customer relationship marketing literature includes little effort to develop a conceptual framework for understanding both supplier and customer relationship-oriented behaviors. The purpose of this study is to investigate how a firm’s supplier and customer relationship-oriented behaviors affect its financial performance through three relationship performance outcomes: supplier relationship performance, product and service quality performance, and customer relationship performance. The authors critically revisit extant knowledge on the subject, develop a conceptual framework integrating supplier and customer relationship management practices, and test the framework in the independent restaurant industry context. Results support the usefulness of the framework and suggest that building relationships with suppliers and customers plays an important role in providing values to restaurant firms and stakeholders such as suppliers and customers, leading to high financial performance of the restaurant firms.

Key Words: supplier relationship • customer relationship • relationship performance • relationship marketing/management • independent restaurant • strategic marketing/management

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