The relationship between channel conflict and information processing

It has long been recognized that conflict within channels of distribution can be either functional or dysfunctional. What is lacking in the literature is a clear understanding of the cognitive processes within the channel that determines whether conflict is to be viewed as functional or dysfunctional. This manuscript introduces information processing to the channel literature to explain how channel members form schema against which new information about a specific channel member is compared. The comparison of new information against an existing schema influences whether a specific conflict episode has the potential of being viewed as functional or dysfunctional. This article develops the notion that both individual boundary personnel and the organization form schema. In addition, this article contends that the organization's schema is a ''superordinate'' schema that is conveyed to the individual boundary personnel, and acts as the primary mechanism used to compare incoming information. A model of this process and managerial implications are presented. Propositions are developed throughout the manuscript.