Investigating Relationship Dependence in International B2B Channel Relationships: An Abstract

Abstract

Developing successful relationships with channel partners has become increasingly important in recent years as channel systems rather than individual firms compete for advantage. Yet as many firms have discovered, managing a channel, especially channels with international partners, can be difficult. Aside from the inherent financial conflict between channel members, international channel partners often have different goals, different management styles, and cultural differences. In such situations, channel management is a function of relationship dependence. The more dependent the channel partner is on the relationship, the more likely the partner is to cooperate (e.g., Razzaque and Boob 2003). Dependence influences satisfaction with the relationship (e.g., Johnson 1999) as well as performance (e.g., Hernandez-Espallardo and Arcas-Lario 2008, Osmonbekov and Gruen 2013).

While the consequences of dependence have been widely examined, considerably less attention has been paid to the antecedents of dependence, though researchers have indeed called for more research in this area (e.g., Scheer et al. 2015). In this research we investigate a combination of potential antecedents to dependence, including partner product and service perceptions, commitment, and trust. As a context for our investigation, we study 80 international dealers from the same channel network within the automotive industry. All dealers have the same manufacturer as the primary supplier.

A theoretically derived conceptual model is forwarded as a framework for understanding what role such key antecedents as commitment, product perceptions, and trust play in strengthening the level of dependence between the supplier and their customer within the channel.

Findings indicate that in order to stimulate commitment within the relationship, perceptions of product quality and accommodating behaviors are salient. It was further noted that, regardless of the quality of the manufacturer’s product offering, commitment to and dependence on the relationship are dependent on the inherent level of trust that exists. The role of trust was also demonstrated to have a moderating effect on accommodation and dependence. The implication for manufacturers herein is apparent, in order to facilitate a strong relationship with their resellers; trust in said relationship on the part of the reseller is tantamount.