This path-analytic study examined the relationships
among channel members' perceptions of dimensions
representing channel leader behavior, channel conflict and
satisfaction. In doing so, the path-goal theory of leadership
is tested in a franchise channel of distribution. The results
indicate that both the consideration and the initiating
structure dimensions of leader behavior significantly
influence franchisees' satisfaction with the franchise
arrangement. As defined in the theory, these relationships
were found to be mediated by the existing level of conflict
being experienced by franchisees. Causal linkages are also
found between intrachannel conflict and satisfaction.
Specific recommendations are provided to franchisors and
other channel leaders.
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