Dealer-Manufacturer Alienation in a Multiple Channel System

Abstract

In recent years, the Internet has accelerated manufacturers' adoption of multiple channels. The literature agrees that multiple channels may cause conflict, but there is little research that identifies factors that either aggravate or alleviate the threat of conflict. Conflict results if manufacturers allow negative affective states, here called “dealer alienation,” to fester. In this article, we investigate how dealer alienation is affected by such factors as environmental uncertainty, transaction-specific investments, and interdependence. The conceptual framework we develop should enable manufacturers to identify situations in which dealer alienation is likely, and to proactively attend to this threat.