Abstract

According to past literatures, conflict will result to negative influence to the performance of marketing channel, but there may be greater benefit if the conflict is reconciled very well. The purpose of this research might not lie in terminating conflicts, it should preferably focus on the appropriate conflict management to increase the constructive conflict resolution mechanisms and decrease the destructive conflict resolution mechanisms. In this study, we apply LISREL to understand the relation between power, conflict resolution, and performance of marketing channel. Main empirical findings are summarized as flows 1. Constructive conflict resolution and destructive conflict resolution both have significant influence on channel performance. 2. Both constructive and destructive conflict resolution are mediators, connected the channel power and performance. 3. Channel power has both significant influence on constructive conflict resolution and destructive conflict resolution.

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