TY - JOUR
T1 - The effects of distributor relationship commitment and relationship exploration on opportunism
T2 - The moderating roles of exchange uncertainties and network factors
AU - Tse, Sin Yan
AU - WANG, Danny T
AU - ZHANG, Junfeng
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.
PY - 2019/11
Y1 - 2019/11
N2 - Channel management entails both the evaluating of incumbent business partners and simultaneously seeking potential new partners. In supplier–distributor exchanges, distributors can explore alternative suppliers while still committing to incumbent suppliers. While the current literature has demonstrated the importance of relationship commitment, the consequences of relationship exploration and whether that exploration is harmful to any incumbent relationships remain unclear. Drawing from relational governance and social network theories, this study thus examines how distributor dual relationship strategies of commitment and exploration influence their opportunistic behavior. The findings from a survey of 328 distributor firms indicate that relationship commitment leads to reduced opportunism; yet relationship exploration exerts no significant main effect on opportunism. More interestingly, these effects are subject to two types of uncertainty and two characteristics of distributor network wherein the focal exchange relationship resides. Specifically, behavioral uncertainty—an internal source of uncertainty—aggravates the opportunism that arises from both strategies, whereas, environmental uncertainty—an external source of uncertainty—alleviates both these effects. The distributor's network density weakens the effect of relationship commitment on opportunism, but network centrality strengthens this effect. By contrasting relationship commitment with relationship exploration under multiple moderating conditions, this study advances the extant channel relationship management literature and practice.
AB - Channel management entails both the evaluating of incumbent business partners and simultaneously seeking potential new partners. In supplier–distributor exchanges, distributors can explore alternative suppliers while still committing to incumbent suppliers. While the current literature has demonstrated the importance of relationship commitment, the consequences of relationship exploration and whether that exploration is harmful to any incumbent relationships remain unclear. Drawing from relational governance and social network theories, this study thus examines how distributor dual relationship strategies of commitment and exploration influence their opportunistic behavior. The findings from a survey of 328 distributor firms indicate that relationship commitment leads to reduced opportunism; yet relationship exploration exerts no significant main effect on opportunism. More interestingly, these effects are subject to two types of uncertainty and two characteristics of distributor network wherein the focal exchange relationship resides. Specifically, behavioral uncertainty—an internal source of uncertainty—aggravates the opportunism that arises from both strategies, whereas, environmental uncertainty—an external source of uncertainty—alleviates both these effects. The distributor's network density weakens the effect of relationship commitment on opportunism, but network centrality strengthens this effect. By contrasting relationship commitment with relationship exploration under multiple moderating conditions, this study advances the extant channel relationship management literature and practice.
KW - Channel management
KW - Interorganizational relationship
KW - Market environment
KW - Network centrality
KW - Network density
UR - http://www.scopus.com/inward/record.url?scp=85065562747&partnerID=8YFLogxK
U2 - 10.1016/j.indmarman.2019.05.004
DO - 10.1016/j.indmarman.2019.05.004
M3 - Journal article
AN - SCOPUS:85065562747
SN - 0019-8501
VL - 83
SP - 301
EP - 313
JO - Industrial Marketing Management
JF - Industrial Marketing Management
ER -