| Abstract: | The result classifies the relationship of switching costs between buyers and suppliers of Information Technology industry as the intention to stay with incumbent provider. The method of quantitative analysis is based on the questionnaire research the relationship between suppliers and buyers. By developing a questionnaire to practice the methodology of quantitative analysis, it is based on cluster analysis to recognize the interactional factors: Network centrality, Network density, Product complexity, Social tie, and Trust. There are three higher-order types: Structural, Relational and Transactional switching costs are combined with four phases: Idle Equipment Loss Costs, Set-Up Costs, Personal Relationship Loss Costs, and Economic Risk Costs. A model is presented that incorporated the overall argument in the form of a series of hypothesized relationships between the different dimensions of Antecedents and Consequences of switching costs. Seeking to address this gap and presenting a theory of how buyers should have an intention to stay with Incumbent Provider. The results of this research suggest that managers should carefully observe a supplier''s goal set prior to the investment in the relationship. Because identification is associated with the formation of loyalty commitment, managers who merely assess suppliers on functional characteristics (i.e., scale, position, uniqueness) unintentionally overlook the important features like shared expectations and business values.
The result classifies the relationship of switching costs between buyers and suppliers of Information Technology industry as the intention to stay with incumbent provider. The method of quantitative analysis is based on the questionnaire research the relationship between suppliers and buyers. By developing a questionnaire to practice the methodology of quantitative analysis, it is based on cluster analysis to recognize the interactional factors: Network centrality, Network density, Product complexity, Social tie, and Trust. There are three higher-order types: Structural, Relational and Transactional switching costs are combined with four phases: Idle Equipment Loss Costs, Set-Up Costs, Personal Relationship Loss Costs, and Economic Risk Costs. A model is presented that incorporated the overall argument in the form of a series of hypothesized relationships between the different dimensions of Antecedents and Consequences of switching costs. Seeking to address this gap and presenting a theory of how buyers should have an intention to stay with Incumbent Provider. The results of this research suggest that managers should carefully observe a supplier''s goal set prior to the investment in the relationship. Because identification is associated with the formation of loyalty commitment, managers who merely assess suppliers on functional characteristics (i.e., scale, position, uniqueness) unintentionally overlook the important features like shared expectations and business values. |
