A strategy for easing the tensions facing suppliers and distributors in their channel relationships may be the adoption of market-oriented behaviors. The authors develop a model of likely effects and empirically examine the consequences of a supplier's market orientation on the distributor's market orientation and other channel relationship factors. Results indicate that a supplier's market-oriented behaviors directly or indirectly affect all the channel relationship factors examined from the distributor's perspective, specifically the distributor's market orientation, trust, cooperative norms, commitment, and satisfaction with financial performance.
Get full access to this article
View all access options for this article.
References
1.
AchrolRavi (1991), “Evolution of the Marketing Organization: New Forms for Turbulent Environments,”Journal of Marketing, 55 (October), 77–93.
2.
AndaleebSyed Saad (1996), “An Experimental Investigation of Satisfaction and Commitment in Marketing Channels: The Role of Trust and Dependence,”Journal of Retailing, 72 (1), 77–93.
3.
AndersonErin, and WeitzBarton (1992), “The Use of Pledges to Build and Sustain Commitment in Distribution Channels,”Journal of Marketing Research, 29 (February), 18–34.
4.
AndersonJames C., HåkanssonHåkan, and JohansonJan (1994), “Dyadic Business Relationships Within a Network Context,”Journal of Marketing, 58 (October), 1–15.
5.
AndersonJames C., and NarusJames C. (1984), “A Model of the Distributor's Perspective of Distributor-Manufacturer Working Relationships,”Journal of Marketing, 48 (Fall), 62–74.
6.
AndersonJames C., and NarusJames C. (1990), “A Model of Distributor Firm and Manufacturer Firm Working Partnerships,”Journal of Marketing, 54 (January), 42–58.
7.
AndersenArthur, & Co. (1995), Facing the Forces of Change: Transforming your Business with Best Practices.Washington, DC: Distribution Research & Education Foundation.
8.
AssaelHenry (1995), Consumer Behavior and Marketing Action, 5th ed. Cincinnati, OH: South-Western College Publishing.
9.
Atuahene-GimaKwaku (1996), “Market Orientation and Innovation,”Journal of Business Research, 35 (February), 93–103.
10.
BakerThomas L., and HawesJon M. (1993), “The Relationship Between Strategy and Structure Within Channel Dyads,”Journal of Marketing Channels, 2 (4), 83–97.
11.
BarksdaleHiram C., and DardenWilliam (1971), “Marketers’ Attitudes Toward the Marketing Concept,”Journal of Marketing, 35 (October), 29–36.
12.
BashawR. Edward, and Stephen GrantE. (1994), “Exploring the Distinctive Nature of Work Commitments: Their Relationships with Personal Characteristics, Job Performance, and Propensity to Leave,”Journal of Personal Selling & Sales Management, 14 (2), 41–56.
13.
BeardenWilliam O., and EtzelMichael J. (1982), “Reference Group Influence on Product and Brand Purchase Decisions,”Journal of Consumer Research, 9 (September), 183–94.
14.
BeckerThomas E., BillingsRobert S., EvelethDaniel M., and GilbertNicole L. (1996), “Foci and Bases of Employee Commitment: Implications for Job Performance,”Academy of Management Journal, 39 (2), 464–82.
15.
BellMartin L., and William EmoryC. (1971), “The Faltering Marketing Concept,”Journal of Marketing, 35 (October), 37–12.
16.
BollenKenneth, and LennoxRichard (1991), “Conventional Wisdom on Measurement: A Structural Equation Perspective,”Psychological Bulletin, 110 (2), 305–14.
17.
BoyleBrett, DwyerRobert F., and RobicheauxRobert A. (1992), “Influence Strategies in Marketing Channels: Measures and Use in Different Relationship Structures,”Journal of Marketing Research, 29 (November), 462–73.
18.
BusinessWeek (1986), “And Now, the Post-Industrial Corporation,”65 (March 3), 64–71.
19.
CannonJoseph P. (1992), “A Taxonomy of Buyer–Seller Relationships in Business Markets,” doctoral dissertation, Department of Marketing, University of North Carolina at Chapel Hill.
20.
CannonJoseph P., and PerreaultWilliam D.Jr. (1997), “The Nature of Business Relationships,” working paper, Department of Marketing, Colorado State University.
21.
CarnevaleDavid G., and WechslerBarton (1992), “Trust in the Public Sector: Individual and Organizational Determinants,”Administration & Society, 23 (February), 471–94.
22.
DayGeorge S., and WensleyRobin (1983), “Marketing Theory with a Strategic Orientation,”Journal of Marketing, 47 (Fall), 79–89.
23.
DeshpandéRohit, and FarleyJohn U. (1996), “Understanding Market Orientation: A Prospectively Designed Meta-Analysis of Three Market Orientation Scales,”Working Paper Series, Report 96-125.Cambridge, MA: Marketing Science Institute.
24.
DeshpandéRohit, FarleyJohn U., and WebsterFrederick E.Jr. (1993), “Corporate Culture, Customer Orientation, and Innovativeness in Japanese Firms: A Quadrad Analysis,”Journal of Marketing, 57 (January), 23–37.
25.
DeutschMorton (1960), “The Effect of Motivational Orientation on Trust and Suspicion,”Human Relations, 13, 123–39.
26.
DionPaul, EasterlingDebbie, and MillerShirley Jo (1995), “What Is Really Necessary in Successful Buyer/Seller Relationships?”Industrial Marketing Management, 24 (January), 1–9.
27.
DreherA. (1993), “Marketing Orientation: How to Grasp the Phenomenon,” in Marketing for the New Europe: Dealing with Complexity, Vol. 1, ChiasJ., and SuredaJ., eds. Barcelona: European Marketing Academy, 375–93.
28.
EnglisBasil G., and SolomonMichael (1995), “To Be and Not to Be: Lifestyle Imagery, Reference Groups, and the Clustering of America,”Journal of Advertising, 24 (1), 13–29.
29.
FrazierGary L., and AntiaKersi D. (1995), “Exchange Relationships and Interfirm Power in Channels of Distribution,”Journal of the Academy of Marketing Science, 23 (Fall), 321–26.
30.
GanesanShankar (1994), “Determinants of Long-Term Orientation in Buyer–Seller Relationships,”Journal of Marketing, 58 (April), 1–19.
31.
GassenheimerJule B., and CalantoneRoger J. (1994), “Managing Economic Dependence and Relational Activities Within a Competitive Channel Environment,”Journal of Business Research, 29 (March), 189–97.
32.
GovindarajanVijay (1988), “A Contingency Approach to Strategy Implementation at the Business Unit Level: Integrating Administrative Mechanisms with Strategy,”Academy of Management Journal, 31 (December), 828–53.
33.
GreenleyGordon E. (1995a), “Forms of Market Orientation in UK Companies,”Journal of Management Studies, 32 (January), 47–66.
34.
GreenleyGordon E. (1995b), “Market Orientation and Company Performance: Empirical Evidence from UK Companies,”British Journal of Management, 6 (March), 1–13.
35.
Harvard Business Review, (1996), “Two Tough Companies Learn to Dance Together,”74 (November/December), 102.
36.
HaydukLeslie A. (1987), Structural Equation Modeling with LISREL: Essentials and Advances.Baltimore, MD: John Hopkins University Press.
37.
HeideJan B., and StumpRodney L. (1995), “Performance Implications of Buyer–Seller Relationships in Industrial Markets,”Journal of Business Research, 32 (January), 57–66.
38.
HolmDesiree Blankenburg, ErikssonKent, and JohansonJan (1996), “Business Networks and Cooperation in International Business Relationships,”Journal of International Business Studies, 27 (5), 1033–53.
39.
HuntKenneth A. (1995), “The Relationship Between Channel Conflict and Information Processing,”Journal of Retailing, 72 (4), 417–36.
40.
JaworskiBernard J., and KohliAjay K. (1993), “Market Orientation: Antecedents and Consequences,”Journal of Marketing, 57 (July), 53–70.
KatzenbachJon R., and SmithDouglas K. (1993), “The Discipline of Teams,”Harvard Business Review, 71 (March/April), 111–20.
43.
KelleyHarold H. (1965), “Two Functions of Reference Groups,” in Basic Studies in Social Psychology, ProshanskyH., and SiedenbergB., eds. New York: Holt Rineholt & Winston, 210–14.
44.
KingRobert L. (1965), “The Marketing Concept,” in Science in Marketing, SchwartzG., ed. New York: John Wiley & Sons, 70–97.
45.
KohliAjay K., and JaworskiBernard J. (1990), “Market Orientation: The Construct, Research Propositions, and Managerial Implications,”Journal of Marketing, 54 (April), 1–18.
46.
KohliAjay K., JaworskiBernard J., and KumarAjith (1993), “MARKOR: A Measure of Market Orientation,”Journal of Marketing Research, 30 (November), 467–77.
47.
KumarNirmalya, HibbardJonathan D., and SternLouis W. (1994), “The Nature and Consequences of Marketing Channel Intermediary Commitment,”Working Paper Series, Report 94-115.Cambridge, MA: Marketing Science Institute.
48.
KumarNirmalya, ScheerLisa K., and SteenkampJan-Benedict E. M. (1995), “The Effects of Supplier Fairness on Vulnerable Resellers,”Journal of Marketing Research, 32 (February), 54–65.
49.
LichtenthalJ. David, and WilsonDavid T. (1992), “Becoming Market Oriented,”Journal of Business Research, 24 (May), 191–207.
50.
LoomisJ. (1959), “Communication, the Development of Trust, and Cooperative Behavior,”Human Relations, 12, 305–15.
51.
MacCallumRobert C. (1986), “Specification Searches in Covariance Structure Modeling,”Psychological Bulletin, 100 (1), 107–20.
52.
MacCallumRobert C., and BrowneMichael W. (1993), “The Use of Causal Indicators in Covariance Structure Models: Some Practical Issues,”Psychological Bulletin, 114 (3), 533–41.
53.
McAllisterDaniel J. (1995), “Affect- and Cognition-Based Trust as Foundations for Interpersonal Cooperation in Organizations,”Academy of Management Journal, 38 (February), 24–59.
54.
McNamaraCarlton P. (1972), “The Present Status of the Marketing Concept,”Journal of Marketing, 36 (January), 50–57.
55.
MoormanChristine, ZaltmanGerald, and DeshpandéRohit (1992), “Relationships Between Providers and Users of Market Research: The Dynamics of Trust Within and Between Organizations,”Journal of Marketing Research, 29 (August), 314–28.
56.
MorganRobert M., and HuntShelby D. (1994), “The Commitment-Trust Theory of Relationship Marketing,”Journal of Marketing, 58 (July), 20–38.
57.
MoschisGeorge P. (1976), “Social Comparison and Informal Group Influence,”Journal of Marketing Research, 13 (August), 237–44.
58.
NamanJohn L., and SlevinDennis P. (1993), “Entrepreneurship and the Concept of Fit: A Model and Empirical Tests,”Strategic Management Journal, 14 (February), 137–53.
59.
NarverJohn C., and SlaterStanley F. (1990), “The Effect of a Market Orientation on Business Profitability,”Journal of Marketing, 54 (October), 20–35.
60.
NarverJohn C., ParkS.Y., and SlaterStanley F. (1990), “Relative Emphasis in a Market Orientation and Its Effect on Business Profitability,” in AMA Summer Educators’ Conference Proceedings, ParasuramanA., and BeardenWilliam, eds. Chicago: American Marketing Association, 219.
61.
PelhamAlfred M., and WilsonDavid T. (1996), “A Longitudinal Study of the Impact of Market Structure, Firm Structure, Strategy, and Market Orientation Culture on Dimensions of Small-Firm Performance,”Journal of the Academy of Marketing Science, 24 (1), 27–43.
62.
PittLeyland, CaruanaAlbert, and BerthonPierre R. (1996), “Market Orientation and Business Performance: Some European Evidence,”International Marketing Review, 13 (1), 5–18.
63.
PruittDean G. (1981), Negotiation Behavior.New York: Academic Press Inc.
64.
RuekertRobert W. (1992), “Developing a Market Orientation: An Organizational Strategy Perspective,”International Journal of Research in Marketing, 9 (August), 225–45.
65.
SandbergWilliam R., and HoferCharles W. (1987), “Improving New Venture Performance: The Role of Strategy, Industry Structure, and the Entrepreneur,”Journal of Business Venturing, 2 (Winter), 5–28.
66.
SapienzaHarry J., SmithKen G., and GannonMartin J. (1988), “Using Subjective Evaluations of Organizational Performance in Small Business Research,”American Journal of Small Business, 12 (Winter), 45–53.
67.
SeinesFred, JaworskiBernard J., and KohliAjay K. (1996), “Market Orientation in United States and Scandinavian Companies: A Cross-Cultural Study,”Scandinavian Journal of Management, 12 (2), 139–57.
68.
SeinesFred, and WesenbergP. (1993), “Organizational Processes in Becoming More Market-Oriented,” in Marketing Theory and Applications, Vol. 4, VaradarajanR., and JaworskiB., eds. Chicago: American Marketing Association, 22–31.
69.
ShapiroBenson P. (1988), “What the Hell Is Market Oriented?”Harvard Business Review, 66 (November/December), 119–25.
70.
ShibutaniTamotsu (1955), “Reference Groups as Perspectives,”The American Journal of Sociology, 60 (6), 562–69.
71.
SiguawJudy A., BrownGene, and WidingRobert E.II (1994), “The Influence of the Market Orientation of the Firm on Sales Force Behavior and Attitudes,”Journal of Marketing Research, 31 (February), 106–16.
72.
SkinnerSteven J., GassenheimerJule B., and KelleyScott W. (1992), “Cooperation in Supplier Dealer Relations,”Journal of Retailing, 68 (2), 174–93.
73.
SlaterStanley F., and NarverJohn C. (1994), “Does Competitive Environment Moderate the Market Orientation–Performance Relationship?”Journal of Marketing, 58 (January), 46–55.
74.
SmeltzerLarry R. (1997), “The Meaning and Origin of Trust in Buyer–Supplier Relationships,”International Journal of Purchasing & Materials Management, 33 (Winter), 40–48.
75.
SonnenbergFrank K. (1994), “Trust Me … Trust Me Not,”Journal of Business Strategy, 15 (January/February), 14–16.
76.
SprengRichard A., MacKenzieScott B., and OlshavskyRichard W. (1996), “A Reexamination of the Determinants of Consumer Satisfaction,”Journal of Marketing, 60 (July), 15–32.
77.
SternLouis W., and El-AnsaryAdel (1990), Marketing Channels.Englewood Cliffs, NJ: Prentice-Hall.
78.
SternLouis W., and ReveTorger (1980), “Distribution Channels as Political Economies: A Framework for Comparative Analysis,”Journal of Marketing, 44 (Summer), 52–64.
79.
ThibautJohn W., and KelleyHarold (1959), The Social Psychology of Groups.New York: Johh Wiley & Sons.
80.
WebsterFrederick E. (1988), “Rediscovering the Marketing Concept,”Business Horizons, 31 (May-June), 29–39.
81.
WebsterFrederick E. (1992), “The Changing Role of Marketing in the Corporation,”Journal of Marketing, 56 (October), 1–17.
82.
WeitzBarton A., and JapSandy D. (1995), “Relationship Marketing in Distribution Channels,”Journal of the Academy of Marketing Science, 23 (Fall), 305–20.
83.
WilsonDavid T. (1995), “An Integrated Model of Buyer–Seller Relationships,”Journal of the Academy of Marketing Science, 23 (Fall), 335–45.
