Examining the Direct and Moderating Effects of Relational Exchange and Innovation Characteristics on New Product Adoption

The purposes of this paper are twofold: (1) to examine the probable positive, direct effect of relational exchange and innovation characteristics on new product adoption, and (2) to explore the moderating effects of relational exchange on the relation of innovation characteristics and new product adoption. This study was conducted in the B-to-B context. Data were collected through questionnaire survey. The respondents were 120 purchasing employees in various industries in Taiwan. PLS (Partial Least Squares), a component-based structural equation modeling (SEM) tool, was employed to validate measures and evaluate the hypothesized structural model. A product indicator approach in conjunction with PLS procedure was employed to assess the interaction effect. The results show that the supplier´s relationship investments, relationship quality, and product relative advantages had significant positive impacts on new product adoption. Relationship investment interacts with relative advantage and compatibility, respectively, to influence new product adoption. These findings imply that implementing successful relational exchange could have an additional, important positive effect on new products to be adopted, which is beyond and above the mere effect generated by favorable characteristics of innovations.