Abstract
This article provides an overview on the formation of social capital in the relationship between the manufacturer and dealer on the basis of the social capital theory. It builds on the premise that when the distributional channel members continue their relationship for longer periods of time, social capital is more strongly formed. Also tested is how social capital affects sales performance. A survey was conducted through 210 dealers in Korea. Results show that the structural dimension and cognitive dimension affect the formation of the relational dimension of social capital. Relational duration does not have a significant correlation with the accumulation of social capital. Social capital is shown to have significant effects on sales performance.
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