Abstract:
An adapted model of the Morgan and Hunt (1994) model is developed using theoretical and
empirical insights from a range of studies. This model is then tested utilising the Morgan and
Hunt (1994) data (i.e., covariance matrix), the IRRPdata (Young and Wilkinson 1989; Young
and Wilkinson 1997)-a more comprehensive and diverse set of responses, and finally,
employing alternative estimation procedures: AMOS as an application of the covariance-based
method of structural equation estimation and PLS-Graph as an application of the
variance-based approach. Results show that the proposed model is statistically superior to
the original model proposed by Morgan and Hunt (1994) in terms of explanatory power and
parsimony. Moreover comparing the adapted model to a direct effects model suggests that
commitment and trust are crucial mediating variables in interfirm relationships.
