An Experimental Investigation of Conflict Response Behaviors and Performance Consequences in Manufacturer-Dealer Relationships: Do Issue Situations and Resolution Strategies Matter?

This study focuses on the independent and interactive effects of problem issue situations and resolution strategies on performance in manufacturer-dealer channel relationships. Conflict issue situation and resolution strategy were a priori matched for a 2 × 2 factorial quasi-experiment. The theoretical framework of (inter)organizational conflict reaction theory was used to extend existing empirical findings about the influence of two factors that foster constructive or destructive consequences experienced from the prospective of dealers. Data were obtained from a sample of 243 dealers and 9 trade administrative experts. The results indicate significant main effects of issue situation and resolution strategy on dealer performance. A significant interaction effect also was found. Managerial implications for dealing with ongoing problem issues with different resolution strategies are discussed.