Examination the antecedents and consequences of trust-an empirical study on pharmaceutical industry

Authors: Shyh-Rong Fang; Chiung-Yao Huang; Mei-Hua Shih;

Journal: Chia Da Management Review. Jun. 2007, 27(1): 1-32.

Keywords: Trust; Relationship Continuity; Switching Cost


Abstract:
This paper explores the antecedents of trust from the levels of organization and people, and the impact of trust on relationship continuity. Besides, we explore if switching cost have the positive moderating effects on relationship between trust and relationship continuity. According to the empirical results, we find the characteristic of pharmaceutical manufacture and sales representative have significant positive effects on the trust, the trust of institutional buyer and the trust of sales representative have positive effects on each other, and the trust of institutional buyer and the trust of sales representative have significant positive effects on relation continuity. Furthermore, the relationship between the trust of institutional buyer in the pharmaceutical manufacture and relationship continuity would be moderated by switching cost. Finally, the study provides several implications and suggestions in theories, practices and future research.