Functional and dysfunctional conflicts in retailer‐supplier relationships

Abstract

PurposeThe purpose of this paper is to present and test a conceptual framework, where relationship quality is: directly affected by both the conflict management approach used and the type of conflict found within the relationship, and enhanced or diminished by conflict management approach's moderating affect on the impact of type of conflict on relationship quality.Design/methodology/approachThe unit of analysis for this study was purchasing retailers who interact with industrial salespeople. Data used for this research were collected through interview questionnaire surveys aimed at the French retailers association during February 2009. A total of 320 French retailers were sampled to fill out the questionnaire. A total of 131 retailers completed and returned the survey for a response rate of 41 percent. The measures were developed and analyzed using the two‐step approach recommended by Gerbing and Anderson with LISREL 8.3.FindingsThis study finds that functional conflict positively affects the quality of the retailer‐supplier relationship and this effect is amplified when retailers use a collaboration conflict management approach. However, the positive effects of functional conflict are mitigated by retailers engaging in accommodating and compromising approaches. Dysfunctional conflict did not positively or negatively affect the overall relationship quality in this study. Its management determines whether it will have a positive or negative effect on relationship quality.Research limitations/implicationsWhile the results presented here in general support the basic premises of the research, several limitations must be noted and there are several areas of future research that could be conducted using the current data set. First, an identical instrument could be administered to a sample of suppliers. This change might give some indication of the differences in suppliers' and retailers' perceptions of conflict management strategies and their effects on relationship quality. Another relevant addition to the understanding in the retailer/supplier arena might include the effect of teams instead of individual retailers on manifest conflict and relationship quality.Originality/valueThe survey results provide new insights on how retailers can use conflict management behaviors to cope better with functional and dysfunctional conflict and improve relationship quality with suppliers.

Relationship Quality Between Portuguese Wine Producers and Chinese Distributors Insight and Recommendations

“…However, three constructs are the most frequently employed and analysed by researchers: trust, commitment and satisfaction. Trust occurs when both parties have expectations and mutual confidence in order to develop exchanges (e.g., Bobot, 2011;Crosby, Evans and Cowles, 1990;Dwyer, Schurr and Oh, 1987). Commitment is stablished when mutual motivation and efforts exist, therefore ensuring and maintaining an on-going relationship, which is defined as very important for all parties (Bobot, 2011).…”

“…Trust occurs when both parties have expectations and mutual confidence in order to develop exchanges (e.g., Bobot, 2011;Crosby, Evans and Cowles, 1990;Dwyer, Schurr and Oh, 1987). Commitment is stablished when mutual motivation and efforts exist, therefore ensuring and maintaining an on-going relationship, which is defined as very important for all parties (Bobot, 2011). Satisfaction is related to a positive affective evaluation which results from the overall appraisal of the meaning and development of the relationship with other partners (Anderson and Narus, 1984;Crosby, Evans and Cowles, 1990;Dwyer, Schurr and Oh, 1987).…”

“…The proactive effort to achieve strong business-to-business relationships is essential in order to develop loyalty and competiveness (Bobot, 2011;Crosby, Evans and Cowles, 1990;Athanasopoulou, 2009). Loyalty itself is a strong relationship concept, as long as it is analysed as a long-term, committed, and affect-laden partnership (Fournier, 1998).…”

“…But what differentiates a single transaction from a relationship exchange is time, that is, a business relationship happens when there are repeated exchanges among all known participants committed to developing interactions according to their context (Fournier, 1998). The willingness and the ability to create effective long-term relationships with positive outcomes for both partners may be regarded as relationship quality (RQ) (e.g., Athanasopoulou, 2009;Bobot, 2011;Fournier, 1998).…”

“…The meanings of the partners' actions have an active inter-influence in the dynamic building of the dyadic relationship and an important role on reducing uncertainly (Bobot, 2011;Crosby, Evans and Cowles, 1990;Dwyer, Schurr and Oh, 1987;Fournier, 1998). The quality of the relationship also requires the partners' ability to manage conflict situations (Bobot, 2011).…”