Building A Long Term Relationship Between Manufacturers And Large Retailers: Does Commitment Matter In Morocco?

Abstract

This paper aims to investigate present evolution in terms of relationship governance between large retailers and manufacturers in distribution channels, with a specific focus on the viability of a shift from a transactional approach to a relational approach in business exchanges. To this end, we investigate the different partners commitment in the specific context of an emerging economy (Morocco). The findings indicate that retailers long term orientation depends far more on their satisfaction and their dependence with respect to their suppliers than on the trust that is built up in their business relationships. Satisfaction is mainly linked to financial gain (margins and turnover generated), but also to the suppliers marketing and logistical performance. Marketing performance concerns the quality of products, their degree of innovation, and the suppliers promotional activity (sales drive and conditions), whilst logistical satisfaction is based on respect for deadlines, regular deliveries and compliance with orders. Very few studies have focused on business relationships between manufacturers and retailers in the specific context of emerging countries like Morocco. The present study is designed to contribute to the debate on the issue via a representative illustration through the lens of an emerging economy with the same socio-cultural background.