| Abstract: | The importance of understanding and managing the channel conflict process has been well discussed, however little research has been conducted to examine the relationship between channel conflict and channel structure. In order to provide the focus for an in-depth research effort, this investigation was restricted to one type of channel structure, a retailer-owned co-operative wholesaling-retailing system, and to an examination of the role and importance of legitimate power as it contributes to channel conflict. A cross-sectional study was conducted of management and boards of directors of the wholesaler and 165 member-retailers of the Co-operative Retailing System. Results from correlational analysis of the aggregated data from sixty-four retail outlets indicated that a co-operative retailing-wholesaling system offers a model of distribution where the benefits of independence and co-ordination have been melded. From the retailers' perspective, autonomy for the independent retailers and a degree of control over channel decisions is offered. For the wholesaler, the decision-making structure provides a model for managing relations between large and small organizations which incorporates a mechanism for conflict resolution, while maintaining standardized delivery of products and services. |
