MANAGING ECONOMIC DEPENDENCE AND RELATIONAL ACTIVITIES WITHIN A COMPETITIVE CHANNEL ENVIRONMENT

Although we are beginning to understand the impact channel relationships have on channel-member behavior and channel efficiency, little is known about the effect actions and reactions within and outside the channel have on these relationships. A model representing the association among economic dependence, relational activities, and channel-member behavior is developed and empirically tested. Using data collected from a national sample of office systems/furniture dealers, the competitive advantage provided by superior relational activities and greater economic support are hypothesized to affect channel interactions. Results support the theoretical basis for the model, confirm previous findings, and provide direction for effectively managing power and dependence and restraining competitive actions.