How Fair Is It? The Distributor’s View in Channel Collaborations

Flora Fang Gu, David K. Tse

Research output: Chapter in book / Conference proceedingChapter in an edited book (as author)Academic researchpeer-review

Abstract

How to better motivate the distributor’s participation in channel collaborations is an ongoing concern for manufacturers. Previous research suggests that distributor participation is influenced by two types of variables: economic incentives and dependence dynamics. This study extends past research by investigating the role of fairness in affecting participation and long-term relationships. The contingent effect of fairness is observed along varying levels of distributor dependence. On the basis of a naturally occurred program, the authors collected data from a focal manufacturer’s distribution channel. The results indicate that (1) the distributor’s fairness perception has significant impacts on both compliance and relational outcomes; (2) the efficacy of fairness reduces as the distributor’s dependence on the manufacturer increases; and (3) the effect of economic incentives is strengthened as the distributor’s dependence increases. The authors discuss the theoretical and managerial implications of the study findings.

Original languageEnglish
Title of host publicationDevelopments in Marketing Science
Subtitle of host publicationProceedings of the Academy of Marketing Science
PublisherSpringer Nature
Pages39
Number of pages1
DOIs
Publication statusPublished - 2015

Publication series

NameDevelopments in Marketing Science: Proceedings of the Academy of Marketing Science
ISSN (Print)2363-6165
ISSN (Electronic)2363-6173

ASJC Scopus subject areas

  • Marketing
  • Strategy and Management

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