Antecedents and Outcomes of Channel Relationships Across Furniture Small-Medium-Enterprises: Measures Development and Propositions

Abstract

One of marketing problems within furniture small-medium-enterprises is timely market information. Collaboration between channel members may become a solution, including collaboration between manufacturers and their connecting retailers. Studies found such collaboration not only improved channel relationship performance but also exhibited negative effects. As such, this research continues the findings by engaging both positive and negative impacts of channel relationships within small-medium-enterprises. This research develops measures for antecedents and outcomes that may involve in the positive and negative relationships between small-medium-manufacturers and their connecting retailers. Situated across furniture industry at Jepara Region-Indonesia, the research employs exploratory factor analysis to compose the most suitable indicators resides within their respective constructs. In addition, this research deploys correlational analysis to develop possible relationships among proposed constructs. Two-hundred furniture manufacturers are involved and they mostly deliver their perceptions about relationships with their connecting retailers. This research finds the perceptions are well-grouped into five constructs: collaboration, relationship-specific-investments, agility, opportunism, and relational performance. Furthermore, this study reveals correlations between constructs and subsequently develops propositions. Theoretical and practical implications are discussed.