TY - JOUR
T1 - The effect of distributors' relationship exploration on relationship quality under market uncertainty
AU - Zhang, Tracy J.
AU - Tse, Sin Yan
AU - Wang, Danny T.
AU - Gu, Flora F.
N1 - Funding Information:
The research is supported by two Faculty Research Grants ( FRG2/16-17/072 and FRG2/16-17/087 ) at Hong Kong Baptist University . All views and errors remain the authors' sole responsibility.
Publisher Copyright:
© 2020 Elsevier Inc.
PY - 2021/2
Y1 - 2021/2
N2 - While relationship exploration, or seeking alternative exchange partners, is a ubiquitous marketing channel strategy when facing a volatile marketing environment, how this strategy affects a firm's incumbent relationship is unclear. Drawing upon resource dependency theory and the dynamic capabilities perspective, we argue that a distributor's relationship exploration does not destruct but rather improves the existing relationship by enhancing the focal distributor's dynamic capabilities (e.g., absorptive capability and innovative capability) that are essential in volatile environments. However, the ultimate influence of this strategy via dynamic capabilities is contingent upon the careful alignment of dynamic capabilities with market conditions. Using a sample of electronic component distributors in China, this study confirms the role of dynamic capabilities as underlying mechanisms in the influence of relationship exploration on relationship quality. Moreover, we find that market uncertainty varies the effects of dynamic capabilities differentially; it strengthens the effect of absorptive capability, while it weakens that of innovative capability.
AB - While relationship exploration, or seeking alternative exchange partners, is a ubiquitous marketing channel strategy when facing a volatile marketing environment, how this strategy affects a firm's incumbent relationship is unclear. Drawing upon resource dependency theory and the dynamic capabilities perspective, we argue that a distributor's relationship exploration does not destruct but rather improves the existing relationship by enhancing the focal distributor's dynamic capabilities (e.g., absorptive capability and innovative capability) that are essential in volatile environments. However, the ultimate influence of this strategy via dynamic capabilities is contingent upon the careful alignment of dynamic capabilities with market conditions. Using a sample of electronic component distributors in China, this study confirms the role of dynamic capabilities as underlying mechanisms in the influence of relationship exploration on relationship quality. Moreover, we find that market uncertainty varies the effects of dynamic capabilities differentially; it strengthens the effect of absorptive capability, while it weakens that of innovative capability.
KW - Channel relationship exploration
KW - Dynamic capabilities
KW - Market uncertainty
UR - http://www.scopus.com/inward/record.url?scp=85098642952&partnerID=8YFLogxK
U2 - 10.1016/j.indmarman.2020.12.005
DO - 10.1016/j.indmarman.2020.12.005
M3 - Journal article
AN - SCOPUS:85098642952
SN - 0019-8501
VL - 93
SP - 344
EP - 355
JO - Industrial Marketing Management
JF - Industrial Marketing Management
ER -