Mediating Role of Satisfaction between Relationship Marketing and Business Performance of Paddy Farmers in Bangladesh

Abstract Nowadays, many firms/individuals are moving toward business relationships, becoming closer and developing business ties with their business partners in the supply chain. Relationship marketing could underpin strategic marketing to minimize economic problems and enhance performance. However, there is little emphasis on how relationship marketing constructs influence paddy farmer’s business, specifically theory-based empirical research. Therefore, this study examined a conceptual framework to explore the mediating role of satisfaction between relationship marketing components (trust, commitment, communication, and power) and paddy farmer’s business performance in Bangladesh. A validated survey instrument was used for data collection, and 356 paddy farmers were interviewed from the district of Mymensingh in Bangladesh. Partial Least Square Structural Equation Modeling (PLS-SEM) was used in data analysis. The findings revealed that relationship marketing components such as trust and communication had direct relationships with business performance. Satisfaction had a direct influence on business performance. It was also a key mediator in the indirect relationship between trust and performance, commitment and performance, as well as power and performance. In enhancing farmer’s business performance, this study suggested that it would be beneficial to practice a long-term relationship marketing strategy instead of a traditional marketing approach in the agriculture context.