Impact of Leadership Style on Channel Partner Motivation

Abstract

While channel decision makers can expend considerable effort in designing efficient and effective distribution channel systems to serve their target markets, success in achieving the firm's distribution objectives may not be realized without implementing a systematic program for motivating distribution channel partners. This places a premium on the identification and use of effective channel strategies for motivating channel partners as well as the capacity of the channel captain to provide leadership as a means of attaining a differential advantage. Thus, channel leadership style has become a critical issue in the administration of distribution channels. Despite the importance of motivating channel partners, there is a paucity of research on this construct. To augment the existing knowledge on channel partner motivation-a fundamental area of interorganizational management-this study empirically examined the influence of participative, supportive, and directive leadership styles on channel partner motivation. Moreover, the relationship between channel partner motivation and channel partner performance is also investigated. The linkages among the constructs were empirically tested on data drawn from a sample of distributive institutions for new automobiles. The findings from this investigation indicate that participative, supportive and directive leadership styles are statistically significant predictors of channel partner motivation, which, in turn, is a determinant of channel partner performance. Distribution channel management implications are discussed, the limitations of the study are identified, and directions for future research are proffered.