Functional and dysfunctional conflicts in retailer‐supplier relationships

Abstract

PurposeThe purpose of this paper is to present and test a conceptual framework, where relationship quality is: directly affected by both the conflict management approach used and the type of conflict found within the relationship, and enhanced or diminished by conflict management approach's moderating affect on the impact of type of conflict on relationship quality.Design/methodology/approachThe unit of analysis for this study was purchasing retailers who interact with industrial salespeople. Data used for this research were collected through interview questionnaire surveys aimed at the French retailers association during February 2009. A total of 320 French retailers were sampled to fill out the questionnaire. A total of 131 retailers completed and returned the survey for a response rate of 41 percent. The measures were developed and analyzed using the two‐step approach recommended by Gerbing and Anderson with LISREL 8.3.FindingsThis study finds that functional conflict positively affects the quality of the retailer‐supplier relationship and this effect is amplified when retailers use a collaboration conflict management approach. However, the positive effects of functional conflict are mitigated by retailers engaging in accommodating and compromising approaches. Dysfunctional conflict did not positively or negatively affect the overall relationship quality in this study. Its management determines whether it will have a positive or negative effect on relationship quality.Research limitations/implicationsWhile the results presented here in general support the basic premises of the research, several limitations must be noted and there are several areas of future research that could be conducted using the current data set. First, an identical instrument could be administered to a sample of suppliers. This change might give some indication of the differences in suppliers' and retailers' perceptions of conflict management strategies and their effects on relationship quality. Another relevant addition to the understanding in the retailer/supplier arena might include the effect of teams instead of individual retailers on manifest conflict and relationship quality.Originality/valueThe survey results provide new insights on how retailers can use conflict management behaviors to cope better with functional and dysfunctional conflict and improve relationship quality with suppliers.