Channel Network Change and Behavioral Consequences of Relationship Connectedness

Abstract The diffusion of mobile telephony in channels of distribution highlights the effects on channel structure and behavior of relationship connectedness and embeddedness. This descriptive and explorative study advances a contextual–historical and interorganizational network perspective on channel relationship change and retail evolution. With longitudinal data on changes in a distribution network for mobile telephony between 1971 and 1994 as an empirical foundation, the paper explores channel change as a longitudinal, interorganizational network process. It is argued that the apprehension of embeddedness and connectedness of channel relationships, as presented in network theories and as observed in this case study, has important strategic consequences for channel actor behavior. Two general types of behavior for handling network tensions caused by relationship connectedness are elaborated: behavior that aims to maintain the existing network structure and behavior that aims to change the existing structure. These two, in turn, encompass different types of strategic behavior. Building on the analyses, some general strategic issues concerning timing of channel actions are discussed together with suggestions for further research.

[1]  C. Grönroos.  Quo Vadis, marketing? Toward a relationship marketing paradigm , 1994 .

[2]  Frederick D. Sturdivant,et al.  Accomplishing marketing channel change:Paths and pitfalls , 1993 .

[3]  Hirotaka Takeuchi,et al.  Productivity in Retailing: Retail Structure and Public Policy , 1977 .

[4]  L. Berry,et al.  Emerging perspectives on services marketing , 1983 .

[5]  D. Ford.  Understanding business markets : interaction, relationships and networks , 1997 .

[6]  C. Antonelli.  The Economics of Information Networks , 1992 .

[7]  The Transformation of Retailing Institutions: Beyond the Wheel of Retailing and Life Cycle Theories , 1981 .

[8]  K. Cook,et al.  Power, Equity and Commitment in Exchange Networks , 1978 .

[9]  L. Stern,et al.  The Environment of Marketing Channel Dyads: A Framework for Comparative Analysis , 1983 .

[10]  Stephen Brown.  Institutional Change in Retailing: A Review and Synthesis , 1987 .

[11]  J. Johanson,et al.  Interorganizational relations in industrial systems: a network approach compared with the transaction cost approach , 1987 .

[12]  The Role of Trading-Up in the Development of the Retailing System , 1975 .

[13]  A. Coughlan,et al.  International Market Entry and Expansion via Independent or Integrated Channels of Distribution , 1987 .

[14]  Bengt G. Mölleryd,et al.  Telecommunication services in context , 1997 .

[15]  J. F. Gaski.  The Theory of Power and Conflict in Channels of Distribution , 1984 .

[16]  Barton A. Weitz,et al.  The Use of Pledges to Build and Sustain Commitment in , 1992 .

[17]  T. Nevett.  Historical Investigation and the Practice of Marketing , 1991 .

[18]  Jan B. Heide.  Interorganizational Governance in Marketing Channels , 1994 .

[19]  Geoff Easton,et al.  Market Exchange, Social Structures and Time , 1994 .

[20]  S. L. Fink,et al.  Organizational Crisis and Change , 1971 .

[21]  J. Sheth,et al.  The evolution of relationship marketing , 1995 .

[22]  Stanley C. Hollander.  The Wheel of Retailing , 1960 .

[23]  S. Hunt.  General Theories and the Fundamental Explananda of Marketing , 1983 .

[24]  S. Hunt,et al.  The Commitment-Trust Theory of Relationship Marketing , 1994 .

[25]  K. Weick.  The social psychology of organizing , 1969 .

[26]  S. Klein,et al.  A theory of retail change , 1993 .

[27]  P. Andersson,et al.  Analysing Distribution Channel Dynamics: Loose and Tight Coupling in Distribution Networks , 1992 .

[28]  Ronald Savitt,et al.  Historical Research in Marketing , 1980 .

[29]  Geoff Easton,et al.  Industrial Networks: A New View of Reality , 1992 .

[30]  Ronald R. Gist.  Retailing : concepts and decisions , 1968 .