Understanding Network Changes in the Multidyadic Vertical Channel: An Intermediary's Perspective

Abstract

Many upstream suppliers actively manage relationships with not only their direct customers (intermediaries) but also those customers’ customers (downstream customer). However, extant research provides limited understanding of this phenomenon. The study employs a multidyadic framework to examine dynamics between upstream suppliers, intermediaries ,and downstream customers. Beyond dyadic analysis, we demonstrate that business connections are interrelated with each other in the multidyadic channel by showing how the downstream customer’s dependence on the intermediary influences the relationship between the intermediary and the upstream supplier. Furthermore, we find that guanxi - a special type of interpersonal connections in the Chinese collective culture – moderates the relationship between dependence of the downstream customer on the intermediary and aligning behaviors of the intermediary with the upstream supplier.