In the shipping business today, the business environment is so dynamic that shipping firms need to manage long-term relationships with their customers such as freight forwarders and shippers as relationship marketing emerges as an important alternative to deal with customer satisfaction.
The purpose of this study is to analyze the influence of transactional characteristics and relational commitment on the choice of freight forwarder's negotiation strategy between freight forwarders and shipping companies. This study aims to examine how transactional characteristics affect the relational commitment between freight forwarders and shipping companies in the transactional relationship of shipping service and how transactional characteristics affect freight forwarder's choice of negotiation strategy characteristics on shipping companies according to the relational disposition and opportunistic disposition representing degree of relational commitment.
An empirical study was carried out not only to examine the factors influencing relational commitment of the transactional characteristics between freight forwarders and shipping companies but also to analyze the role of intervening variables.
The data investigating the influence of transactional characteristics and relational commitment on the choice of freight forwarder's negotiation strategy were collected from 450 freight forwarding companies in Korea on the basis of five different sections -
1) The transactional characteristics of shipping companies First, this study was carried out while the importance of relational commitment and negotiation strategy characteristics are emerging.
Second, exploratory research was carried out to find out the cause-effect relationship in the marketing channel of shipping service included in the shipping industry. 1. Transactional characteristics is found to have a positive effect to relational commitment in causal relation between theoretical variables and relativistic propensity. Opportunistic propensity of relational commitment is found to be positively related in negotiation strategy. These results show that transactional characteristics are to affect not only relational commitment but also negotiation strategy according to the role of mediation of relational commitment.
2. Asset specificity and competitive degree of the transactional characteristic of shipping companies are found to be neutral and strategic variability and sole selling rights are found to be positively related.
3. Relativistic propensity of relational commitment is found to be not related to keep opportunistic propensity under control effectively.
Consequently subordinate variables of transactional characteristics, relational commitment and negotiation strategy are found to improve GFI(goodness-of-fit index) value of research model explaining the relation between shipping companies and freight forwarders based on GFI value. Also, GFI value considering relational commitment affected by each subordinate variables is found to improve better than the second model. And GFI Analysis considering the relational commitment and characteristics between shipping companies and freight forwarders are found to be best of all research models.
On the basis of the results, freight forwarders in weak position are judged to shirk overbearing strategy by choice of aggressiveness or compromising strategy to flee from disadvantage of transactions unbalance of power however they may be relation under the control of transactions by opportunistic propensity from the other party.
Therefore, solving the opportunistic transaction between freight forwarders and shipping companies not only reduce dependence of freight forwarders to shipping industry but increase share market the other way if freight forwarder dose offsetting investment to customer in close connection with customer to reduce dependence of shipping companies.
Consequently trustful relationship between shipping companies and freight forwarder is an important matter to make up a long-range transaction relationship by developing the cooperative arrangement of relativistic propensity on reliance and satisfaction to achieve a common objective.
Compared with the previous studies on the relational commitment and negotiation strategy up to present, there are some differences as follows (1) Relativistic propensity (2) Opportunistic propensity
5) Characteristics of negotiation strategy
- by the use of questionnaire method and personal interviews.
Frequency analysis and Spearman's correlation coefficient were used to find out the nature of the data. The factor analysis and AMS 4.0 of SEM(structural equation modeling) were used to find out the cause-effect relationship among the relevant variables in the research model.
The result of hypothesis to test were found as follows (1) Sole selling rights (2) Strategic variability