Poisoning Relationships: Perceived Unfairness in Channels of Distribution

Stephen A. Samaha · Robert W. Palmatier · Rajiv P. Dant

366 citations0/0 files storedJournal of Marketing

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Customer Service Quality and Loyalty Supply Chain and Inventory Management Quality and Supply Management

Abstract

Understanding how relationships are damaged is a critical component in building and preserving strong distribution channels. Using longitudinal data from a Fortune 500 firm and its channel members, this research shows that perceived unfairness truly acts as “relationship poison” by directly damaging relationships, aggravating the negative effects of both conflict and opportunism, and undermining the benefits of using contracts to manage channel relationships. Surprisingly, at low levels of perceived unfairness, conflict and opportunism have small or even insignificant effects on channel member outcomes, which implies that research investigating the negative impact of conflict and opportunism on exchange outcomes may need reevaluation because these effects are contingent and may vary depending on the levels of perceived unfairness. In addition, the findings support the premise that using contracts to manage channel relationships represents a double-edged sword that suppresses the negative effects of conflict and opportunism while aggravating the negative effect of unfairness.

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References

1997Dynamic capabilities and strategic management 1994The Commitment-Trust Theory of Relationship Marketing 2000Dynamic capabilities: what are they?1987The Economic Institutions of Capitalism 1976Markets and Hierarchies: Analysis and Antitrust Implications.1970Exit, Voice and Loyalty: Responses to Decline in Firms, Organizations, and States.1965Inequity In Social Exchange 1986The Economic Institutions of Capitalism

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