The effect of trust, product and cost advantage behaviors provided by the supplier on the financial performance of the distributor

Abstract

This study examines which behaviors of the supplier firm (product importance, reliability and cost) are effective in the financial performance of the distributor. To this end, behavioral factors such as reliance on the supplier, importance of the supplier's product, cost advantage and financial performance, which are considered to be effective in the financial performance of the distributor, are formed. The model and hypothesis of the research were determined and tested on distributors. To determine the factors that can contribute to financial performance, a research-based view (RBV) was applied and the results obtained were analyzed. The findings of the study show that the reliance that the supplier firm assures and the cost advantage of the supplier have a positive impact on the financial performance of the distributor. In this respect, as the reliance on supplier firms increases, additional costs of the distributor will decrease. Other findings and arguments were also included. © IDOSI Publications, 2012.