From trust and dependence commitment to B2B engagement: An empirical analysis of inter-organizational cooperation in FMCG

Abstract

This research paper aims to demonstrate that relationships play a pivotal role in fostering inter-organizational cooperation, both at the corporate and individual levels, within the fast-moving consumer goods (FMCG) distribution industry. Despite the extensive body of literature on relationship management, its impact on such a unique and important channel as FMCG remains undetermined. To achieve this objective, we designed a questionnaire for a survey targeting Spanish FMCG distributors, from which we collected 204 responses. We analyzed this data using partial least squares structural equation modeling (PLS-SEM), an emerging methodology in business research that enables us to assess the model's explanatory power and predictive capacity in understanding the relationships between various constructs. Our findings indicate the efficacy of governing inter-organizational relationships to facilitate cooperation. Additionally, we uncover links between corporate and individual relationships that contribute significantly to cooperation. In terms of practical implications for businesses, our results emphasize the importance for managers to prioritize relationships as an integral aspect of efficient channel management. This pertains to relationships within the distribution channel among partners and also individual relationships among business managers. Notably, the existing academic literature has not yet established the effectiveness of relationships in governing channels within the FMCG marketing channel, nor has it established a direct connection between inter organizational and individual relationships among business managers