The Impact of Relational Governance on Relational Exchange Performance: A Case of the Taiwanese Automobile Industry

Relational governance affects manufacturers’ ability to adapt flexibly to uncertainty in manufacturer–supplier relationships. Enhancing manufacturer–supplier relationships requires considering supplier willingness and opinions on the relational governance of their focal manufacturer and the effect of relational governance on relational exchange performance. After reviewing the related literature, I identified the antecedents of relational governance affecting suppliers’ relationships with their focal manufacturers and explored the effect of relational governance on relational exchange performance, taking relationship value and relationship norms as the intervening constructs. Data were collected from 241 usable questionnaires that had been completed by suppliers for all Taiwanese automobile manufacturers. The hypotheses were tested with respondent data by using a structural equation model. The results indicated that relational governance directly and positively relates to relationship value and relationship norms, relationship value and relationship norms directly and positively relate to relational exchange performance, and customer focus and competitive priorities directly and positively relate to relational governance.     

An Examination of the Coercive Power-Satisfaction Relationship Within a Relational Exchange

ABSTRACT

The authors develop a oonoeptual model that examines the moderating effect of dealer resistance on the use of coercive power-satisfaction relationship. The results provide a possible explanation for inconsistent results within extant channel literature regarding relationships that are power and/or dependency asymmetric Within the context of the model, the authors also provide a conceptualization of the endogenous construct, conflict potential, as a means to examine what motivates a channel member to exercise coercive power as an influencing agent. The model also examines the dealer's tendency to yield or acquiesce decision-making control to the manufacturer within the context of the use of coercive power-satisfaction relationship. The model is tested, via two-group structural equation modeling using a sample of 324 high level executives from the office systems and furniture industry. The authors provide theoretical and managerial implications of the research results as well as directions for future research.     

Competitive channel relationship management: When resellers establish competing manufacturer relationships

The focus of this study is the impact of competitive relationships on the effectiveness of channel relationship management strategies. We argue that the characteristics of a reseller??s relationship with alternative manufacturers influence his/her evaluation of the relationship with a focal manufacturer. We extend previous research by suggesting that the relative levels of channel conflict and information exchange are critical determinants of relationship outcomes. Building on previous literature on customer satisfaction, we argue that this relation is asymmetric; improvements in the levels of channel conflict and information exchange will have a greater effect when these are below the competitor??s comparative level than when these are above. We find support for these hypotheses in a sample of 491 observations corresponding to different resellers selling a manufacturer??s product line across several countries. Our results underscore the need for suppliers to go beyond conflict minimization and information exchange policies across relationships and consider individual-level competitive effects for each relationship.     

Economic and non-economic factors of Korean manufacturer-retailer relations

The purpose of the study was to examine the impact of antecedent channel power sources on satisfaction, conflict, trust, dependence and long-term channel relationships between Korean retailers and manufacturers. The sample included 210 cosmetic retailers in 15 Korean cities. The results indicate that Korean manufacturers' exercised coercive power decreases retailers' economic and non-economic satisfaction, while exercised non-coercive power increases economic and non-economic satisfaction. Second, exercised coercive power increases both economic and non-economic conflict, and exercised non-coercive power decreases non-economic conflict. Third, retailers' economic and non-economic satisfaction is negatively related to economic and non-economic conflict. Fourth, trust is a mediating factor between satisfaction (economic and non-economic) and a long-term relationship. Finally, results indicate that neither conflict nor satisfaction is unidimensional; each has an economic and non-economic dimension. This finding is an important contribution to the channel relations literature.     

The importance of customer satisfaction in explaining brand and dealer loyalty

The positive influence of customer satisfaction on brand and dealer loyalty is often taken for granted. In this study we attempted to prove whether this relationship really exists. In order to do so we examined the case of an automobile‐dealer network. Three different types of customer satisfaction were distinguished: (a) satisfaction with the car; (b) satisfaction with the sales service and (c) satisfaction with the after‐sales service. It was expected that all three types of satisfaction would have an influence on brand loyalty as well as on dealer loyalty. More specifically, it was expected that satisfaction with the car would be the major determinant of brand loyalty and that satisfaction with the service (both sales‐ and after‐sales service) would be the major determinant of dealer loyalty. Furthermore, a study of the literature revealed that dealer loyalty might also significantly affect brand loyalty.

In the empirical part of the study, customers (n = 416) of different automobile‐dealers of the same brand were asked to fill in a mailed questionnaire. The three different types of customer satisfaction and the intention to buy the same brand of car again, as well as the intention to buy from the same dealer again were measured. The customers were also asked why they would buy the same brand (again) or from the same dealer. In general, the analyses of the results revealed that: customer satisfaction with the car, as well as dealer loyalty are major determinants of brand loyalty; customer satisfaction with the sales service as well as with the after‐sales service are major determinants of dealer loyalty and dealer loyalty is an intervening variable in the relation between satisfaction and brand loyalty. Furthermore, it was found that the strength of the relationship between different types of satisfaction and loyalty indicators differs markedly between various market segments (private/business use of car and new/used car buyers). Several marketing implications are presented. A distinction may be made between the implications for the manufacturer of the physical product and the automobile dealer rendering the service.     

A cross-cultural study of influence strategies and satisfaction in marketing channels

The relationship between communication in the form of influence strategies used by suppliers in marketing channels and dealer satisfaction is examined in the two diverse cultures of the US and India. The frequencies of use of six types of influence strategies by suppliers-information exchange, recommendation, request, promise, threat and legal plea-are measured. The same measurement scales for the six influence strategies and dealer satisfaction are applied in the electric lamp and lighting equipment channels in the two countries. In both cultures, a structural equation model relating the influence strategies with dealer satisfaction is found to be statistically significant. However, when the impact of individual influence strategies on dealer satisfaction is considered, differences are found between the two countries. In the US, recommendations affect dealer satisfaction positively whereas requests and threats affect it negatively. In India, recommendations and legal pleas impact on dealer satisfaction positively.     

制造商权力策略对经销商情感承诺的影响研究

权力使用是影响关系承诺的因素之一,但涉及权力使用与情感承诺间关系的研究很少。本文探讨了制造商权力使用与经销商情感承诺间的关系。通过问卷调查,利用因子分析及多元线性回归分析验证了概念模型及假设。研究结果表明,制造商威胁与信息交换策略的使用会降低经销商的情感承诺,制造商建议策略的使用会增加经销商的情感承诺。     

渠道冲突与制造商的品牌维护

销售渠道的本质是利益的有序分配,这种分配又是以利润分配为纽带、以品牌为依托、以产品为核心开展与进行的。渠道冲突最终损害的是市场中最基本的客户关系,即制造企业与消费者的关系,危害制造商的品牌。然而经销商行为的不确定性、代理过程中的投机行为、信息不确定性、品牌沟通效率低下等方面因素损害了制造商的品牌,应从资源依赖、组织基础两种制造商品牌维护模型及在此模型下建立强势品牌、实施品牌扩张两种制造商品牌保护策略。     

Aligning Company and Dealer Perspectives in Corporate Branding: Implications for Dealer Satisfaction and Commitment

Purpose: There is a contention in marketing literature that gaps between corporate and key stakeholders’ perspectives have unfavorable implications for corporate brand performance. The current article attempts to empirically substantiate this argument. As such, this article looks at the relationship between a car manufacturer and its dealers and examines it from the perspective of the relationship misalignment.

Methodology: Applying the Profile Deviation method, this study tests the effects of a manufacturer–dealer corporate brand misalignment on dealer satisfaction and commitment. The manager-specified ideal profile for a corporate brand was used as a proxy for a manufacturer perspective and a benchmark against which dealer perceptions were compared. The corporate brand construct encompassed the dimensions of corporate image, corporate personality and dealer-experienced value. Hypotheses were tested using Pearson correlations and multiple regressions.

Findings: Results, which were robust across all the corporate brand dimensions, support the hypotheses of negative performance impact of manufacturer-dealer misalignment.

Originality/value/contribution: This study identifies an important link between the theoretical proposition and the operationalization test of examining performance implications of misalignment. The current study argues for broader integrative thinking and cross-disciplinary research in business-to-business marketing. In the absence of the relevant literature on conceptualization and operationalization in the marketing literature, the article borrows a testing method of Profile Deviation from the management field. By developing a fine-grained analysis, the current study pinpoints specific aspects that require co-alignment in corporate branding, thus facilitating managerial decision-making.

Research implications/limitations: The current study demonstrates that deviation from a corporate perspective implies a weakness in corporate branding process with negative performance consequences. The Profile Deviation perspective used in this article has focused on a static, cross-sectional approach for specifying and testing misalignment between a manufacturer and its dealer principles. The researchers are encouraged to consider alternative mechanisms to test for misalignment as a dynamic task within a longitudinal research design.

Practical implications: Companies must be aware of the areas where gaps can occur that impede effective decision-making. Aligning a corporate brand between a company and members of the distribution channel requires careful implementation that encourages dealer inputs in brand operations while avoiding counter-productive implications.     

The Power of Innovativeness in Manufacturer–Retailer Relationships

ABSTRACT

Purpose: Retailers often challenge manufacturers through aggressive store brand policies and severe listing constraints. This study investigates manufacturer innovativeness as a managerial lever to shift the power balance between manufacturers and retailers.

Methodology/approach: Using data from 277 senior managers of Swiss and German consumer goods manufacturers and analyzing these data with structural equation modelling, the authors test hypotheses about the impact of manufacturer innovativeness on manufacturer–retailer relationship characteristics (i.e., retailer dependency, store brand aggressiveness, and listing constraints).

Findings: The study demonstrates that manufacturer innovativeness enhances retailer dependency, which in turn positively affects overall manufacturer performance. This relationship can be explained further: By increasing retailer dependency, manufacturers suppress retailers’ store brand aggressiveness and attenuate retailers’ listing constraints. Store brand aggressiveness affects overall manufacturer performance through listing constraints.

Research implications: Identifying levers such as innovativeness that assist manufacturers in fostering their power over retailers provides a new mode for understanding how manufacturers can influence the balance of power between manufacturers and retailers. The study provides support for the approach/inhibition theory of power on the inter-organizational level. Organizations with increased power are assumed to have approach-related tendencies and act in goal-consistent manner, whereas organizations with reduced power are assumed to develop the tendency to pursue inhibition-related actions, e.g., attending to threats. Furthermore, this study identifies channel relationship characteristics such as retailer dependency as a mediating path between manufacturer innovativeness and performance.

Practical implications: Managers need to strengthen the firm’s innovative capacity to enhance the performance of their companies. By developing the capability to provide radical innovations, manufacturers are able to enhance their performance not only directly but also indirectly by strengthening the manufacturer’s position with regard to retailers. This study underscores the relevance of innovativeness for strengthening the manufacturer’s position in its relationship with retailers that avoids problems with aggressive store brands and constrained listing conditions.

Originality/value/contribution: This study proposes manufacturer innovativeness as a managerial lever to shift the power balance between manufacturers and retailers.     

Balancing the sequential logic of quality constructs in manufacturing-supplier relationships — Causes and outcomes

Manufacturers in business markets are experiencing a strong trend towards close versus distant relationships with suppliers. Three key relationship constructs in academic research are trust, commitment, and satisfaction. Although the relevant literature holds some evidence that trust and commitment are antecedent to satisfaction, the possibility that satisfaction plays a key mediation role between trust/commitment and other important outcomes (i.e., coordination, cooperation, and continuity) receives scant examination. This study tests this conceptual model by examining the relationships between manufacturers and suppliers. A random sample of small-to-medium-sized Norwegian manufacturers was contacted by phone in order to identify potential key informants. Shortly thereafter, a total of 581 surveys were mailed to the key informants. Two hundred and twelve surveys were returned, representing a response rate of 36.5%. Results support the conceptual model presented; trust and commitment relate positively to satisfaction; and satisfaction, in turn, relates positively to all three outcomes of coordination, cooperation, and continuity.     

Exclusive dealing without territory exclusivity in multichannel systems: managing channel conflict and driving commitment

The exclusive dealing literature suggests that manufacturers should protect exclusive dealers (ED) from intrabrand competition by assigning exclusive territories (ET). We consider ED systems without ET and investigate how manufacturers can enhance ED channel outcomes, such as the ED’s level of commitment to the relationship, by strategically managing its downstream communication efforts with ED and non-ED channels. We show that these cross-channel communication efforts (i.e., the quality of communication between the manufacturer and non-ED resellers in the ED reseller’s territory) are important drivers of relationship conflict and commitment for ED resellers, while playing a limited role for non-ED resellers. These results underscore the need for manufacturers to understand the perspectives and behaviors of each individual channel within a multichannel system and manage their different distribution channel types as an integrated system. We find support for our hypotheses in a sample of 672 observations corresponding to different ED and non-ED resellers selling a manufacturer’s product-line across several European countries.     

Export Involvement and Channel Conflict in a Manufacturer-Intermediary Relationship

Numerous articles have been published regarding the strained relationships between highly involved export manufacturers and their international intermediaries. While channel conflict is frequently cited as a major reason for such strained trade relationships, few research studies examine the relationship between a manufacturer's export involvement and channel conflict. In this paper, we develop hypotheses linking the three major domains of export involvement to the initial stages of channel conflict. The results indicate that a manufacturer's conflict with its principal international intermediary decreases with greater manufacturer dependence on the principal intermediary, increases as resources are committed to exporting, and decreases with the manufacturer's foreign market knowledge.     

Dealer-Manufacturer Alienation in a Multiple Channel System

Abstract

In recent years, the Internet has accelerated manufacturers' adoption of multiple channels. The literature agrees that multiple channels may cause conflict, but there is little research that identifies factors that either aggravate or alleviate the threat of conflict. Conflict results if manufacturers allow negative affective states, here called “dealer alienation,” to fester. In this article, we investigate how dealer alienation is affected by such factors as environmental uncertainty, transaction-specific investments, and interdependence. The conceptual framework we develop should enable manufacturers to identify situations in which dealer alienation is likely, and to proactively attend to this threat.     

Government and Market Mechanisms to Provide Alternatives to Scrap Tire Disposal

SUMMARY

The current study examines disposal and recycling of scrap tires with a discussion of the role of government policies and an empirical study of tire dealers' preferences for market and government solutions to disposal problems. Preference for government intervention was related positively to dealer perceptions of environmental concerns, consumer concerns and the severity of the problem, but related negatively to dealers' assessments of manufacturer effectiveness in disposal solutions. Results show the need for more information from manufacturers and government agencies and show dealer support of specific remedies in developing new uses, technologies, and markets for scrap tires. Market development and commercialization of recycled products may be facilitated by cooperation of involved business and government agencies. Particular government actions to stimulate markets include enforcement of disposal restrictions; provision of technological and capital assistances; participation in setting industry standards for recycled rubber products; and state procurement policies.     

营销渠道中的渠道关系、权力使用与投机行为

文章基于营销渠道行为及关系营销理论,以制造商与其经销商之间的关系为研究平台,检验了制造商的关系营销导向以及跨组织私人关系对其使用权威机制以及经销商投机行为的影响。研究结果表明:制造商的关系营销导向对于其使用非强制性权力有显著的正向影响,对其使用强制性权力虽然没有直接影响,但会通过跨组织私人关系(情感性与工具性)产生负向影响;制造商与其经销商之间的跨组织私人关系(情感性与工具性)会抑制制造商使用强制性权力,工具性私人关系会促进其使用非强制性权力;制造商使用强制性权力会加重经销商的投机行为。最后,讨论了研究结果与应用及未来的研究方向。     

Dealer Satisfaction Through Relationship Marketing Across Cultures

Abstract

The relationship of supplier-dealer relationalism with dealer satisfaction is examined with the help of a structural equation model in the two diverse cultures of the United States and India. Intrachannel relationalism between suppliers and dealers is measured in six dimensions: solidarity, mutuality, flexibility, role integrity, duration, and trust. The same measures of the various aspects of relationalism and dealer satisfaction are applied in the electric lamp and lighting equipment channels in the two countries with satisfactory reliability and validity. In both countries, relationalism as a whole is found to have a significant positive impact on dealer satisfaction. Individually, different dimensions have significant impacts on dealer satisfaction in the two countries. In the United States, trust and mutuality are individually significant, whereas in India, flexibility is the significant dimension affecting satisfaction. Managerial implications of the results and future research directions are discussed.     

Interfirm Technology Transfer:

This study focuses on the independent and interactive effects of problem issue situations and resolution strategies on performance in manufacturer–dealer channel relationships. Conflict issue situation and resolution strategy were a priori matched for a 2 × 2 factorial quasi-experiment. The theoretical framework of (inter)organizational conflict reaction theory was used to extend existing empirical findings about the influence of two factors that foster constructive or destructive consequences experienced from the prospective of dealers. Data were obtained from a sample of 243 dealers and 9 trade administrative experts. The results indicate significant main effects of issue situation and resolution strategy on dealer performance. A significant interaction effect also was found. Managerial implications for dealing with ongoing problem issues with different resolution strategies are discussed.     

Local Dealer Adoption of a Foreign Manufacturer-Sponsored Internet-Based Information System

ABSTRACT

Firms often use Internet-based interorganizational information systems (IBIS) to facilitate the integration of information and communication between channel members. However, in practice firms are sometimes reluctant or even refuse to adopt such systems, especially when sponsored by a foreign manufacturer to local dealers. This article presents an empirical study of 80 dealers faced with the IBIS decision from a large international tire manufacturer. The results indicate that perceived financial and usage benefits of the IBIS and security are important determinants of dealer adoption of an IBIS. Further, the results indicate that higher IBIS adoption levels correspond to changes in the nature of the channel relationship, operational and exchange benefits, and commitment of the dealer to the manufacturer.     

Guest editorial: research themes in retailing

This paper is designed to address the differences among competitors in the use of interfirm influence strategies, trying to discover tendencies in the use of each strategy, ranking the use of the different influence strategies and identifying the type of strategy used by each manufacturer. Data were gained by a mail survey of the major computer manufacturers in Spain. Empirical research has been undertaken in order to build the constructs 'coercive influence' and 'noncoercive influence', and they are ranked by level of use. Causal analysis is used to provide such analysis. Type of influence strategy adopted by suppliers is analysed. Grouping of computer manufacturers according to the type of influence strategy adopted is also provided.