The role of fairness and relationship quality in developing relational behavior for competitive advantage

Abstract

To be an effective global competitor requires to be a trusted cooperator in some network. This argument defines the essence of marketing channel partnerships. Relational behaviors have a conclusive effect in the success of marketing initiatives; hence, they are amongst the variables that set apart a good partnership. How do fairness and relationship quality effect relational behaviors? This study aims to answer these questions for a channel setting that comprises the marketing firm, its exclusive distributor, and the retailers. Research data was gathered from four hundred independent retailers by using face to face interviewing technique. Prior research mostly studied the effects of fairness on relational behaviors and on relationship quality dimensions. This study aims to explore the mediating role of relationship quality for the firm and distributor dyad. The design also sets the study apart as it observes the firm-distributor dyad from the retailers’ perspective as opposed to prominent exploration of the firm-distributor relationships. Scales were developed from the existing literature, adopted for the research context, tested for reliability and validity. Structural equation modeling was used to test the research data. The study establishes the mediating role of the relationship quality for the effect of fairness on relational behaviors. It also provides valuable insight on how to be a complementary member in the firm-distributor dyad as it explores how effects of fairness and relationship quality on retailer behavior differentiate for the firm and the distributor.