Supplier-Retailer Relationships in Grocery Distribution in Malaysia: Indications of Dominance,Conflict, and Cooperation

ABSTRACT

This exploratory study sets out to assess the presence of dominance, conflict and cooperation in channel relationships between grocery suppliers and retailers in Malaysia. There have been extensive studies on these channel issues in markets of developed countries but very little is known in markets of developing countries such as Malaysia. The initial assessment identifies traces of dominance, conflict and cooperation in the Malaysian channel environment. The findings suggest that the retailers perceive the suppliers as being more in control of the grocery distribution channels as indicated by the extent of influence they exert on channel functioning. The suppliers also acknowledged their roles in channel functioning as they felt that most channel issues are within their control. There also appears to be evidence of relationship characteristics identical to aspects of relationship marketing.