Channel perormance enablers, channel conflict and channel member performance an investigation into vietnam airlines agencies

UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------

NGUYEN THI TUYET OANH

CHANNEL PERFORMANCE
ENABLERS, CHANNEL CONFLICT AND
CHANNEL MEMBER PERFORMANCE:
AN INVESTIGATION INTO VIETNAM
AIRLINES’ AGENCIES

MASTER OF BUSINESS (Honours)

Ho Chi Minh City – 2014


UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------

NGUYEN THI TUYET OANH

CHANNEL PERFORMANCE
ENABLERS, CHANNEL CONFLICT AND
CHANNEL MEMBER PERFORMANCE:
AN INVESTIGATION INTO VIETNAM
AIRLINES’ AGENCIES

ID: 21110014

MASTER OF BUSINESS (Honours)
SUPERVISOR: LUU TRONG TUAN PH.D

Ho Chi Minh City – 2014


ACKNOWLEDGEMENTS
This thesis could not have been possible without the help of many people.
First, I would like to take this opportunity to express my sincere gratitude to Dr.
Luu Trong Tuan for his clear and careful direction, his guidance and his
corrections of my thesis. I especially appreciate his continual and on-going
enthusiasm in responding, reminding, and assisting in all aspects of this endeavor.
Secondly, I would like to express my sincere thanks to my company, Thien Hai
Services Travel Trading Corporation, as well as my managers and supervisors for
their patience, understanding and support of my thesis.
Thirdly, I would like to thank my dear colleagues, friends and classmates for their
valuable encouragement during the many months that I was working on this
thesis. Special thanks are also sent to those individuals working for the Vietnam
Airlines’ agencies who have volunteered their valuable time in meeting, speaking
with and responding to my thesis survey.
Last, but not least, I would like to express my heartfelt thanks to my family for
their support, their encouragement, and their faith while completing my thesis.

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ABSTRACT
This study investigates the relationships between channel performance enablers
which include trust, commitment and cooperation, as well as channel conflict, and
channel member performance in service industries, especially in the area of

logistics as found in the airlines industry. The objective of this study is to
determine the influence that both channel performance enablers and channel
conflict has on channel member performance. Our research questions were: “Are
there positive relationships between channel performance enablers and channel
member performance?” “Is there a negative relationship between channel conflict
and channel member performance?”
To test the hypotheses, we studied 208 respondents working in 18 various
Vietnam Airlines’ agencies. The data collection was based on the questionnaire
adapted from previous studies and modified for the service industry as well as for
the Vietnam context. (Dwyer and Oh, 1987; Kumar et al,. 1995; Lumineau and
Oxley, 2007; Sezen and Yilmaz, 2007).
As expected, the results of the study show the existence of positive relationships
between channel performance enablers and channel member performance. In
these relationships, cooperation has the strongest positive relationship with
channel member performance (ß = 0.284, p<0.001). It shows that to achieve high
channel member performance, agencies should increase the cooperation in the
channel. Next, commitment has the second strongest positive relationship with
channel member performance (ß = 0.237, p<0.05). And last, trust has the least

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strongest positive relationship with channel member performance (ß = 0.214,
p<0.05).
However, the findings did not state the negative relationship that exists between
channel conflict and channel member performance (ß = 0.099, p=0.124).
Past and previous research focused on the relationships between channel
performance enablers and channel member performance primarily in the
manufacturing sector. This study here contributes to the practical theory between
channel performance enablers and channel member performance in a different

industry: the service industry.
Key words: Trust, commitment, cooperation, channel conflict, channel member
performance, Vietnam Airlines’ agencies.

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TABLE OF CONTENTS
ACKNOWLEDGEMENTS ............................................................................................ i
ABSTRACT ................................................................................................................... ii
LIST OF FIGURES ...................................................................................................... vii
LIST OF TABLES.......................................................................................................viii
CHAPTER 1 ................................................................................................................... 1
INTRODUCTION .......................................................................................................... 1
1.1 Problem statement ................................................................................................. 1
1.2 Research Aims ...................................................................................................... 3
1.3 Research scope ...................................................................................................... 3
1.4 Research contribution............................................................................................ 4
1.5 Research structure ................................................................................................. 4
CHAPTER 2 ................................................................................................................... 6
LITERATURE REVIEW ............................................................................................... 6
2.1 Channel member performance .............................................................................. 6
2.2 Trust and channel member performance ............................................................... 8
2.3 Commitment and channel member performance ................................................ 10
2.4 Co-operation and channel member performance ................................................ 12
2.5 Channel conflict and channel member performance........................................... 14
2.6 Research Model ................................................................................................... 16
CHAPTER 3 ................................................................................................................. 18
RESEARCH METHODOLOGY ................................................................................. 18
3.1 Research process ................................................................................................. 18

3.1.1 Step 1: Item generation step ......................................................................... 19
3.1.2 Step 2: Pilot study ......................................................................................... 21

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3.1.3 Step 3: Main study ........................................................................................ 21
3.2 Data collection .................................................................................................... 22
3.2.1 Sample size ................................................................................................... 22
3.2.2 Sampling method .......................................................................................... 23
3.3 Data source .......................................................................................................... 23
3.4 Measurement of variables ................................................................................... 24
3.5 Methods of data analysis .................................................................................... 27
3.5.1 Reliability analysis measured by Cronbach’s Alpha. ................................... 27
3.5.2 Validity measured by Exploratory Factor Analysis (EFA) .......................... 27
3.5.3 Multiple regression analysis ......................................................................... 29
CHAPTER 4 ................................................................................................................. 32
DATA ANALYSIS ...................................................................................................... 32
4.1 Preparation data ................................................................................................... 32
4.2 Descriptive statistics............................................................................................ 32
4.3 Cronbach’s Alpha analysis .................................................................................. 33
4.4 Exploratory Factor Analysis (EFA) .................................................................... 36
4.5 Regression analysis ............................................................................................. 40
4.5.1 Testing of the fit level of model ................................................................... 41
4.5.2 Results of regression analysis ....................................................................... 47
CHAPTER 5 ................................................................................................................. 53
CONCLUSIONS .......................................................................................................... 53
5.1 Conclusions ......................................................................................................... 53
5.2 Manegerial implications ...................................................................................... 53
5.3 Limitations and further research ......................................................................... 55

REFERENCES ............................................................................................................. 59
APPENDIX 1 : QUESTIONNAIRE – ENGLISH VERSION .................................... 67
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APPENDIX 2 : QUESTIONNAIRE – VIETNAMESE VERSION ............................ 71
APPENDIX 3 : DATA ANALYSIS RESULTS .......................................................... 75

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LIST OF FIGURES
Figure 2.1: Conceptual Framework .............................................................................16
Figure 3.1: Research Process .......................................................................................19
Figure 4.1: Scatter plot ................................................................................................43
Figure 4.2: Regression Standardized Residual ............................................................46
Figure 4.3: Normal P-P plot of Regression Standardized Residual ............................47

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LIST OF TABLES
Table 2.1: Factors and items ........................................................................................25
Table 4.1: Descriptive statistic of samples ..................................................................32
Table 4.2: Cronbach’s Alpha of four factors and channel member performance .......34
Table 4.3: Means, standard deviations and reliabilities of channel performance
enablers, channel conflict and channel member performance ....................................34
Table 4.4: KMO and Bartlett’s Test for factors ..........................................................37
Table 4.5: Total Variance Explained ...........................................................................38
Table 4.6: Rotated Component Matrix ........................................................................39

Table 4.7: Casewise diagnostics (time 1) ....................................................................41
Table 4.8: Casewise diagnostics (time 2) ....................................................................42
Table 4.9: Model Summaryb ........................................................................................42
Table 4.10: Correlation matrix for variables ...............................................................44
Table 4.11: Coefficients ..............................................................................................45
Table 4.12: Model Summary .......................................................................................47
Table 4.13: Hypothesis testing results .........................................................................51

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CHAPTER 1

INTRODUCTION
1.1 Problem statement
Over the past few decades, there have been increasing channel strategies in the
globalization of markets, and the emergence of the Internet. The use of multiple
channels is to serve a given product. The market is quickly becoming the rule
rather than expectation (Frazier, 1999; Moriarty and Morans, 1990). This is the
basic motivation for suppliers, who establish the multi-channel distributions, to
increase their market share and reduce their costs (Frazier and Antia, 1995).
Companies benefit from channel strategies in a variety of ways. It allows them to
understand customer needs as well as their purchasing patterns. Companies with
different kinds of products can satisfy much more of their customer needs as well
as attract new customers. The large existing distributions can enable companies to
focus on more precise target markets, improving their competitiveness (Kevin and
John, 2002).
However, multiple channels can cause conflicts within their own systems. In fact,
channel conflict is the most serious concern for companies. In a survey, Gilbert
and Balcheldor (2000) state that channel conflict is the biggest issue companies

face today in their sales strategy. So, companies are attempting to redefine and
redesign the structure of their channel distribution and make it more efficient
while improving the channel member performance as well. There is a need for
empirical research to understand channel conflict and its influence on channel

1


member performance. The first purpose of this paper is to establish the
relationship between channel conflict and channel member performance.
The trends that influence consumers’ preference for determined products and
services have a strong impact on the issues related to channel management
(Frazier, 1999). Those channels are combined in an integrated procedure from the
channel members and the consumers (Rosenbloom, 2003). The relationships
between channel members are very complicated. Their goals and objectives are
different. Therefore, they tend to desire to achieve each side’s goals and ignore
the others. This leads them to be distant in their own relationship. By improving
and getting them closer to each other’s goals and objectives, companies have to
build some channel performance enablers, including trust, commitment and
cooperation. Channel performance enablers are mentioned in many previous
research projects to find the most effective way for manufacturers as well as
distributors (Rousseau et al., 1998). They show that the channel performance
enablers make the whole system operate more efficiently and more effectively.
They probe the primary aspects of channel member performance; such as, how
trust, commitment, and cooperation impacts the system.
However, they have studied some of these aspects separately. They have
individually studied the relationship by either conflict or trust or commitment or
cooperation in the relationship between them in manufacturing (Nair, 2008;
Lusch, 1976). This paper will simultaneously study how channel conflict and all
channel performance enablers have influence on the channel member performance

in these complex relationships in one specific model. In this study, we also
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investigate the relationships between them in a service industry such as the
airlines, an important logistic industry, instead of manufacturing like previous
research projects. In addition, this paper will focus on the special characteristics
of an emerging market like Vietnam.
1.2 Research Aims
For understanding the influence of channel performance enablers including trust,
commitment, and cooperation, and channel conflict on channel member
performance between Vietnam Airlines’ and its agencies, this research aims to
investigate:
1) The positive relationship between channel performance enablers and channel
member performance.
2) The negative influence of channel conflict on channel member performance.
1.3 Research scope
Vietnam Airlines’ agencies are numerous and of various types. According to
Vietnam Airlines statistical nationwide figures, there are 222 agencies in the
South, 64 agencies in the Central and 166 agencies in the North. With over 450
company agencies, channel performance enablers and channel conflict between
Vietnam Airlines and its agencies play an important role in its agencies’
contribution and participation as well as its success and performance. However
due to the limitations of data availability, research funds and time, the scope of
this research is therefore limited to Vietnam Airlines’ agencies located in Ho Chi
Minh City and will investigate the influence of channel performance enablers and

3

channel conflict on channel member performance. This is considered appropriate
because Ho Chi Minh City has the highest number of Vietnam airlines’ agencies.
1.4 Research contribution
The paper helps to expand the amount of literature about the relationships that
exist between channel performance enablers, channel conflict and channel
member performance. It identifies the factors that enable and improve channel
member performance as well as the factors that disable and destroy channel
member performance. Based on these factors, managers and agencies can find the
best way to increase channel member performance.
It also probes the relationships between channel performance enablers, channel
conflict and channel member performance in a new industry: services instead of
manufacturing. In an emerging market like Vietnam, the services industry is
considered as a “targeted” industry to help develop the economy.
Additionally, the findings will help to examine the relationships between channel
performance enablers, channel conflict and channel member performance studied
in an emerging market within a specific culture: Southeast Asia.
1.5 Research structure
This study is divided into five chapters as follows:
The first chapter is an “introduction” which includes the problem statement,
research objectives, research scope, research contribution and the structure of this
research.

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The second chapter is “literature reviews” which summarizes the concepts, the
theories, the experiences and previous research about the elements that contribute
to the relationship between trust, commitment, cooperation, channel conflict and
channel member performance. The research model including hypotheses and
conceptual framework is also given in this chapter.

The third chapter pertains to the “research methodology”. It introduces the
research process, data collection and methods of data analysis.
The fourth chapter explains the “data analysis”. It reports the analysis results
from the collected data obtained via the surveys.
The last chapter is devoted to “conclusions”. It discusses the result of the “data
analysis” part and provides recommendations.

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CHAPTER 2

LITERATURE REVIEW
This chapter provides the definitions of channel member performance, channel
performance enablers including trust, commitment, cooperation and channel
conflict as well as discusses the relationships between them and channel member
performance based on the previous research.
2.1 Channel member performance
Channel member performance can be defined as “the degree to which the channel
member engages in behavior that contributes to the fulfillment of the channel
leader’s objectives” (Gaski and Nevin, 1985, p.136). Since the channel members
can significantly influence a firm’s long-term success or failure, companies are
continuously concerned about the performance levels of the organizations that
comprise their marketing channels. Moreover, the level of performance attained
by channel members can be critical if a firm is to achieve a differential advantage
(Porter, 1985; Rosenbloom, 1973). However, all the previous research on
marketing channels show that research on marketing channel member
performance has not been their primary emphasis and little is known about what
actually influences channel members to perform effectively in selling the products
of the firms they represent. This may be partly due to the lack of a general

agreement over the definition of performance (Lewis and Lambert , 1991). Terms
such as effectiveness and productivity have been used and misused repeatedly,
which has made the clear determination of what exactly performance is, very
difficult.
6


In this study, a managerial view is used to assess the performance of individual
channel members. It focuses on measuring the channel efficiency of channel
members because the performance of the overall marketing channel is determined
to a large extent by the performance of individual channel members comprising
the channel. Channel member performance efficiency is measured by two indices:
productivity and profitability. Channel productivity refers to the efficiency with
which output is generated by the inputs used or expended and generated from
resources (Stern et al., 1998). Channel productivity is a measure of efficiency in
using inputs (measured in terms of labor and capital) to generate outputs
(measured in terms of revenues, gross margins, and value added). Channel
profitability is a general measure of the financial performance of channel
members in terms of return on investment, growth in profits, and liquidity
leverage, among other indices. In short, channel profitability indicates how
efficiently marketing channel members utilize their financial resources and
represent economic success or factors related to it (Rosenbloom, 1999).
A periodic assessment of channel member performance is crucial to ensure that
the channel is progressing towards its goals and objectives. According to the
resource-based theory, a firm’s competitive advantage is a function of its
valuable, rare and inimitable resource (Barney, 1996). For intermediaries, such
resources are often intangible, embedded and knowledge-based such as
experience and knowledge of the market, and include skills such as negotiation
skills and skills in channel activities.

7


2.2 Trust and channel member performance
Trust is a concept that is covered as a vagueness since “trust has never been a
topic of mainstream sociology” (Luhmann, 1998). Despite an immense amount of
research, a generally accepted definition of trust seems to be lacking in clarity
(Lewis and Weigert, 1985). Recent discussions have brought huge attention to
this area for many researchers. The purpose is to bring more structure and order to
this concept. The concept of trust is very closely linked to risk and expectations.
Interestingly, trust is used as a substitute for risk. At the same time, trust creates a
risk for the truster. As Baier (1986) clearly explains: “trust involves the belief that
others will, so far as they can, look after our interests, that they will not take
advantage of us and will not harm us. Therefore, trust involves personal
vulnerability caused by uncertainty about the future behavior of others. Put more
succinctly, we cannot be sure, but we believe, that they will be benign, or at least
not malign, and act accordingly in a way which may possible put us at risk.” This
implies that there is no defined certainty. From all of this comes an acceptable
postulation that the increasing distrust in our society is a direct result of the
evolution to a post-modern society. People today are faced with increasing
uncertainty in many facets of their lives. So trust is used to reduce this
uncertainty. Trust is never absolute but always conditional and contextual; it
depends on the content on how it is to be defined.
Most of the research that has been conducted on trust deals with interpersonal
trust; that is, trust between people. Interpersonal trust is sometimes approached at
the aggregate level. This term can be defined as something based on most
8


individuals. It is a visible pattern in society as a whole. This is contrary to being

based on specific people or specific cases. This is important because we are
determining as the best we can, a clear explanation and understanding of trust.
Another perspective approaches trust from the most basic level: interpersonal
interaction between two or more people. So trust is defined as using a behavior
that has a lot of forethought involved. Therefore, trust is a strategy utilized to
enhance a person’s advantage.
Trust enables cooperative human endeavors (Fukuyama, 1996) and is vital to
inter-organizational relationships (Gambetta, 1988; Rousseau et al., 1998;
Blomqvist, 2002). People naturally trust people, more than technology (Friedman
et al., 2000). Trust is also seen as an expression of confidence in an organizational
environment. This leads to cooperative behavior among individuals and groups
within and between organizations (Nandhakumar et al, 2006).
According to Bijlsma & Koopman (2003), trust is a key to organizational
performance because it makes cooperation voluntary. This form of cooperation
becomes increasingly important when command and control styles of
management are no longer effective. Trust is a solution for specific problems of
action in preference to alternatives, in spite of the possibility of being
disappointed by the action of others (Luhmann, 1988). Trust is a complex concept
because it is related to the confident expectation that persons involved in the
action will act competently and dutifully (Smith, 2005).
Past research has shown the influence of trust on channel member performance
(Rich, 1997; Robinson, 1996). A high level of trust in an agency increases the
9


chance that one will take a risk such as co-operation and sharing information.
Therefore, a high degree of trust may lead to increase channel member
performance, leading to the following hypothesis:
H1: There is a positive relationship between trust and channel member
performance.

2.3 Commitment and channel member performance
There are several variations for the definition of commitment suggested by
researchers. Attention was given to the concept of commitment after the study of
Kantor in the 1970s. This was followed in the 1980s when American managers
started to study Japanese companies to figure out the reasons why they were so
successful. They surmised that this success was somehow attributed to the
channel members’ loyalty. The interest in the relationship between the mobility
of channel members and the concept of commitment then continued to gain
widespread

attention

in

the

1990s

(Yilmaz

and

Dil,

2008).

Since the definition of commitment constantly changes, depending on who is
using the term, it is certain that the ideas pertaining to commitment, such as
“whether the commitment is good or bad, constant or variable”, will change
primarily due to the flexibility of the use of the term.

Many theoretical studies about commitment have focused on the channel
member’s commitment to the system. From taking this approach, there have
emerged two different trends of thoughts. Morrow (1983) suggests that
commitment should be separated from other commitment concepts such as work
10


commitment, business ethics, addiction to career. He contends that commitment
should be dealt with separately from its related concepts. So it is good to
comprehend the effects that this concept has on channel members’ performance.
Basic business tenets state that the survival of a channel is dependent on the
members’ retention in the system. It is argued that a system is as powerful as the
level of the commitment of the channel members to that system. Systems try to
prevent channel members from quitting by using incentives such as commission
increases, improved opportunities, better working conditions, promotions and
other rewards (Bayram, 2005).
When a channel decides to make an unconditional commitment to the channel
process, this action represents a long-term orientation toward the selected channel
relationship (Narus and Anderson, 1986). The motivation behind this action, the
engine that is powering this action, is for one of three reasons: enhancing the
value of the channel’s market offering to its customers or to lower the channel’s
total cost or it could even be for both reasons (Stern and El-Ansary, 1992). The
most important outcome from doing all this is to improve channel member
performance.
Once this commitment to channel relationships is established, channel members
automatically share mutual goals and objectives. Their values are also shared
among themselves. It’s similar to an individual joining a team. Once committed to
play, then all else is in synch. Once committed, they all work more closely to
achieve both their individual as well as joint goals. Therefore it can be said that
this commitment can lead to increased coordination within the channel which will

11


enable all channel members to experience increased and improved performance
(Anderson and Weitz, 1989). Unless there is instinctive and coordinated behavior,
the channel may have to develop more extensive control systems to guarantee the
desired level of performance. All this results the increase of channel costs
(O’Relly and Chatman, 1986). All of these actions impact performance for the
entire channel as well as for each member who is part of the channel.
Accordingly, our second hypothesis states:
H2: There is a positive relationship between commitment and channel
member performance.
2.4 Co-operation and channel member performance
Social relationships are based on the understanding that the participating parties
will be involved with a long-term commitment. Gilliland and Bello (2002)
contend that in this type of relationship, social goals are more important than
economic goals or objectives. Heide (1994) adds that socially bonded parties
“forego present rewards on the basis of an expectation of long run equity.” So, in
situations where the results reflect low economic performance, partners react to
this by strengthening their bonds. They also work hard for long-term success of
the relationship. In addition to the motivation to maintain their relationship, there
is another factor that uncovers the greater effectiveness of cooperation in the case
of past poor-yielding performance. Its foundation is based on the beneficial
disrupting effects of difficulty on some negative aspects of inter-firm relationships
when everything is going well. Selnes and Sallis (2003) describe a “dark side” of
relationships, which in some cases involves the need for excessive care to
12


maintain a pleasant relationship but which can lead to counterproductive

behaviors among the channel participants. These behaviors include:
The intentional avoidance of announcing negative information in order to keep
good relationships between members in channel;
The shortage of monitoring of the distributor activities, which causes the lack
of necessary information between the suppliers products and its performance
with these products; and
Loss of creativity in case both partners fall into a group consensus rather than
adopting independently individual action.
These elements can result in a reduced quality of cooperation because the
exchange of information between the parties is an essential element of
cooperation. In addition, cooperation is about solving problems together. If the
partners do not raise important issues, they are likely to remain unresolved.
Gilliland (2004) contends that the pressure to obtain high economic performance
can change a firm’s attitudes and behaviors. A low performance jeopardizes the
continuation of the relationship and acts as a deterrent to continue with a status
quo behavior as if all is running smoothly. Members will realize the seriousness
of the problems and issues facing the future of their relationship and must openly
and frankly discuss the actual problems that need to be solved.
No channel member can perform all of the functions necessary to move the
product through the channel which forces all the channel members into a state of
mutual dependence. Because each firm depends on the other to carry out its
functions efficiently and economically, cooperation among members is essential
and a vital behavior (Lynn and Robert., 1996). Moreover, the major goal of
13


channel members is usually profit maximization. Therefore, members need to
perform their functions well in order to contribute to this goal which in turn will
improve their performance. Additionally, it is useful to view channel members as
important organizations composed of interdependent institutions because they

must cooperate to perform distribution tasks in terms of pursuing independent and
collaborative goals. Cooperation between members can help improve the
competitiveness of the channel (Martha, Ellram and Lisa M, 1997) and the
interaction between members can be described as a social exchange process in
which each channel member interactively increase its commitments to the
relationship. Therefore, high levels of co-operation between an agency and
Vietnam Airlines may lead to increase and improve channel member
performance. Our third hypothesis is:
H3: There is a positive relationship between co-operation and channel
member performance.
2.5 Channel conflict and channel member performance
Conflicts are inherent, inevitable and are widely spread out in channel systems
due to the constant interaction and interdependence of its members in a search for
mutual objectives (Singh, 2006; Koza and Dant, 2006, 2007). In previous
research, conflicts are beneficial for the reinforcement and the upgrade of joint
business actions (Coughlan et al., 2006). On the other hand, conflicts are defined
as a situation that occurs when a channel members has the perception that the
actions of another one show a behavior in preventing the accomplishment of its
goals or the effective performance of it (Stern et al., 1998; Rosenbloom, 2003).
14


Channel conflict occurs when channel coalition perceives that another is engaged
in behaviors that impede the first entity from achieving its goals (Frazier, 1983).
Channel conflict is probably the most serious concern for members that depend on
“channeling” for its success. Members are attempting to re-construct their
distribution systems and develop a more efficient process that will disrupt
traditional channels. All this is implemented resulting in conflict both internally
among channel members and managers and externally with distribution partners.
Steinfield et al. (2002) claims that the avoidance of channel conflict critical for

click-and-mortar companies if they are to achieve the possible benefits of multiple
marketing channels.
According to Brown and Day (1981), there is a negative correlation between the
conflict and the satisfaction of a member of a channel with the performance of
another member. The level of satisfaction of an intermediate member of a
distribution channel varies with the level of existing conflict; concluding that
without a conflict incidence, the satisfaction level is low. With a level of natural
conflict, the satisfaction level is higher than when there is none. When a conflict
level is perceivable and obvious, the satisfaction level diminishes significantly
(Dant and Schul, 1992). Conflicting objectives by the various channel members
can lead to internal conflict over customers, raise the potential for customers’
confusion and dissatisfaction. In addition, conflict implies a level of tension,
frustration, and disagreement in the relationship due to one member that obstructs
the other member in reaching its goal (Geyskens et al., 1999). Although channel
conflict can be functional (Coughlan et al., 2006, Anderson et al., 1990, Stern and
15