Impact of Relationship Marketing Orientation on the Exercise of Interfirm Power and Relational Governance in Marketing Channels: Empirical Evidence From China

Abstract

This article examines the impact of manufacturers’ adoption of a relationship marketing orientation (RMO) on the exercise of power, operationalized as the exercise of coercive and noncoercive power, and relational governance, operationalized as joint planning and joint problem solving, in distribution channels. The empirical analysis of the data from 139 Chinese manufacturers shows that RMO has a positive effect on the exercise of noncoercive power by manufacturers over their distributors and a negative moderating effect on the positive relationship between power and the exercise of coercive power. Although RMO positively affects joint problem solving among channel members, it is found to have a negative impact on joint planning. The authors attribute the last surprising effect to the unique channel environment in China.