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The primary purpose of this article is to expand our understanding of the dependence and reciprocal action constructs in distribution channel relationships. The authors develop a conceptual framework for channel relationships involving the exchange of industrial products within sellers' markets in developing countries. The framework is tested with data collected in the tungsten carbide tool industry in India. Results are generally supportive of the conceptual framework and illustrate the need to (1) take the channel context into account in developing channel theory and (2) perform empirical studies in a wide variety of channel settings.

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