Coping with Manufacturers’ Dilemma in the E-Commerce Era

Abstract

From a channel conflict perspective, this paper proposes a Relational Model identifying key determinants of manufacturers’ intentions to establish an online direct sales channel (ODSC). The paper also develops a Strategic Framework as a guideline for manufacturers to formulate their Internet channel strategies. Unlike most other studies on channel conflicts that focus on channel management after the manufacturer has already established its ODSC, this study provides a comprehensive strategic analysis of channel conflicts based on a pre-ODSC context, which prevents unnecessary losses from channel conflicts before they occur.