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The control of intra-channel opportunism through the use of inter-channel communication
Authors:Martin Phenix Nunlee [Author Vitae]
Institution:Syracuse University, School of Management, Syracuse, NY 13244-2130, United States
Abstract:Within channels of distribution, there has been some degree of cooperation among channel members. In many cases, channel members actively cooperate with one another in competition against other channels. However, competing channels of distribution also have common interests, including controlling intra-channel opportunism. This research focuses on the use of social mechanisms for controlling intra-channel opportunism.This study investigates whether firms effectively employ inter-channel communication as a method of controlling opportunistic behavior. Under a social control mechanism, firms would pass along information concerning their channel member's reputation. Comparing two different types of firms within a single industry allows for the examination of how firm properties dictate the use of social control mechanisms.
Keywords:Reputation  Opportunism  Transaction cost  Contracting  Communications  Relationship marketing  Channels of distribution
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