Marketing Channel Relationships among Small Businesses

Abstract

DR. I xiJEs T. SIMPSON AND DR. BRENT M. WAreni are respectively associate and assistant professors of marketing at the Unixversitx of Alabama, Huntsville, USA, aincd Professor Chris Patul is chair of the D)epar tment of Economics and Finance at the same University. As distributorsuipplier irelationships become increasingly complex, considerable advances have been made in Ltunderstatnding the relationship im-aniagement process. However, little effort has been dexoted to understanding hoxss co-ordination and control or t-elationslip activities is achieved wheni small businesses are involved. This paper (lescribes the results of a study examining whether the rielationships these btusinlesses have wxith their suppliers. The i-esults suggest that, utnlike larger firmns, the smuallest firms operate primarily in ittarket oiloosely aligned governance stlrulcttii-es, assign less importance to the continuation of long-term relationships andlct use fewxer influence attempts. However, smiall businesses tend to rely i ore on i elational norms as a means of' iman-iaginig the relationship. The conclusions and implications of these finclings are discussed.