The effects of supplier B2B sustainability positioning on buyer performance: The role of trust

Sustainability positioning is essential for firms that operate in highly competitive environments, as businesses are increasingly being evaluated in terms of their sustainable practices. Drawing upon social exchange theory, this study examines the role of trust as an underlying mechanism through whi...

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Bibliographic Details
Published inIndustrial marketing management Vol. 102; pp. 311 - 323
Main Authors Casidy, Riza, Yan, Li
Format Journal Article
LanguageEnglish
Published Elsevier Inc 01.04.2022
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Summary:Sustainability positioning is essential for firms that operate in highly competitive environments, as businesses are increasingly being evaluated in terms of their sustainable practices. Drawing upon social exchange theory, this study examines the role of trust as an underlying mechanism through which supplier B2B sustainability positioning influences buyer performance. A survey of 389 Australian B2B executives reveals the critical role of relational and competency trust in mediating the relationship between B2B sustainability positioning and buyer performance. However, industry-relevant factors such as transactional uncertainty and competitive intensity influence the mediating effects of trust in opposite directions. Specifically, competency trust has stronger mediating effects on buyer performance when there is lower transactional uncertainty and greater competitiveness. On the other hand, relational trust has stronger mediating effects on buyer performance when there is greater transactional uncertainty. The findings provide useful insights for firms wishing to leverage their sustainable image in order to appeal to prospective buyers. •B2B sustainability positioning positively affects buyer performance via trust.•Competitive intensity positively moderates the effect of trust on performance.•Competency trust has stronger mediating role when transactional uncertainty is low.•Relational trust has stronger mediating role when transactional uncertainty is high.
ISSN:0019-8501
1873-2062
DOI:10.1016/j.indmarman.2022.02.005