The Role of Corporate Ethical Management on Trade Relationship Trust and Commitment: B2B

Abstract

This study investigated whether three components of ethical management—awareness, operation, and practice—have a positive effect on corporate trust and relationship commitment in business-to-business (B2B) transactions. The study examined whether the trust formed in transactions, or relationship commitment, affects the establishment of long-term oriented relationships between companies. Further, it also aimed to determine the extent to which the authenticity of ethical management serves as a moderator that allows ethical management to influence outcome variables. The study’s sample comprised personnel (top management, management, and staff) from small- and medium-sized companies that transact with companies that mainly conduct B2B transactions. An empirical analysis was performed using data from 1323 returned questionnaires. Structural equation modeling was performed to test the hypotheses. The results showed that authenticity and the corporate ethical management components did not have moderating effects when they affected trust; however, in relationship commitment or a long-term oriented relationship, authenticity has a moderating effect when trust and commitment affect the long-term oriented relationship. This study’s empirical results contribute valuable data to the literature, as it is based on a survey conducted on actual personnel members of companies in B2B relationships.