In this dissertation, my focus is on understanding distribution channel conflict, its relationship with efficient channel governance and its impact on channel performance. In particular, I will study (1) how the channel conflict can be defined and interpreted, (2) how channel conflict can affect channel governance, (3) what would be the performance outcomes of channel conflict, and (4) how channel conflict can be managed. My theoretical frameworks borrow mainly from transaction cost economics theory (TCE), and strategic marketing. On the empirical side, I employ several methods including meta-analysis (Two-Stage SEM) as well as different econometrics techniques such as Conditional Mixed-Process (CMP) regression estimation. My data comes from diverse sources and are mainly hand collected and created from archival sources. For the meta-analysis study, I extract empirical results of more than 100 studies on channel conflict since the 1960s. For the other empirical efforts, the data comes from various sources. The major data collection undertakings include extracting and integrating data from: (1) Franchise Disclosure Document (FDD) of more than 1000 franchise firms, (2) firms records, and (3) specific franchise rankings such as Entrepreneur and Franchise Times’ rankings spanning from 2004 to 2015. The dissertation comprises following broad inter-related chapters (excluding Introduction and Conclusion chapters): (1) Managing Channel Conflict: Insights from the Current Literature, (2) Conflict and Performance in Channels: A Meta-Analysis, (3) Channel Conflict: Bad for Business?, (4) Adapting to Channel Conflict: An Empirical Study?, and (5) Two Views on Channel Conflict. Chapter 1 is a compendium on channel conflict that not only provides a comprehensive literature review on channel conflict (since the 1960s) but also identifies gaps and provides some managerial perspectives on channel conflict. One of the identified gaps in Chapter 1 revolves around the role of channel conflict and its relationship with other inter-firm constructs. In Chapter 2, I build on this identified gap by conducting a comprehensive meta-analysis study using Two-Stage SEM (TSSEM) method to aggregate the previous findings on channel conflict and its relationship with other inter-firm constructs particularly channel performance. I also investigate the potential moderators of the conflict-performance link. Chapters 1 and 2 set the stage for the next empirical work. One of the enduring debates in the channel domain is about the functionality and dysfunctionality of channel conflict. In Chapter 3, I address this directly by exploring the non-linear (inverted U-shaped) relationship between channel conflict and performance. While Chapter 3 explores the empirical relation between conflict and performance, another understudied but important research question is about how firms react to channel conflict. Such reactions can span the range from relying on relational norms to more explicit adjustment in channel governance. In Chapter 4, I address this by examining the effect of manifest channel conflict on channel governance, controlling for relational norms. In particular, I study how firms adapt their channel governance following litigation. Finally, Chapter 5 is a reflection on the body of knowledge that I have investigated above. This chapter will provide two views on channel conflict by comparing two different channel conflict conceptualizations. I illustrate the differences between these two views by comparing them based on firms’ objectives, conflict characteristics, and managerial approaches toward channel conflict, providing real-world examples of how firms approach and manage channel conflict. / Thesis / Doctor of Philosophy (PhD) / In this dissertation, my focus is on understanding distribution channel conflict, its relationship with efficient channel governance and its impact on channel performance. Channel conflict is an endemic phenomenon. The advent of new technologies (such as Internet-of-Things enabled monitoring systems) and the emergence of the Internet as a primary medium of business transactions have brought big changes to channel management. Use of multiple channels to reach consumers and exchange value with business partners have become much more common with these changes. While channel conflict has always been an important business concern, these have rekindled the interest and attention of researchers and managers to the phenomena. In this dissertation, I investigate the phenomenon of channel conflict and its effect on channel governance and business performance by conducting several independent studies spanning different research methods. The research findings will address gaps in the extant research literature as well as offer both theoretical and practical insights for researchers and practitioners interested in distribution channels strategy and management.

The internet has had a profound effect on communication, entertainment, buying, and selling (Webb 2002) and, in particular, as a distribution channel (Van den Poel and Leunis 1999). Increasingly companies in a variety of industries have established their own online direct sales channels instead of merely relying on conventional intermediaries (Coughlan et al 2006). Hence, multi-channel distribution strategies, combining both off- and online channels are being adopted. Frazier (1999:232) argues: “The utilization of multiple channels of distribution is now becoming the rule rather than the exception”. Companies which combine physical and web channels have been referred to as “clicks and mortar,” “bricks and clicks,” “surf and turf,” “cyber-enhanced retailing,” or “hybrid e-commerce,” (Gulati and Garino 2000; Steinfield et al 2002 a b; Agatz et al 2008; Sharma and Mehrotra 2007). Despite the apparent popularity of internet channels, adding an internet channel to the distribution mix creates potentially significant challenges for channel managers (Webb 2002). A major concern is that by going multi-channel, a firm might face ‘channel conflict’ between channel members (Sharma and Mehrotra 2007). As Rosenbloom (2007:7) claims: “Perhaps the most significant obstacle to building successful multi-channel strategies is the emergence of conflict between the different channels used for reaching customers”. The main objective in this study is to explore the impact of the internet as being a distribution channel within the multi-channel system. Three research issues which have seldom been discussed in previous literature are explored in this study. These three questions are: Q1: What are the factors encouraging manufacturers to develop the internet channel, especially manufacturers with a well established distribution channel? Q2: What are the channel design patterns of the multi-channel structure? Q3: How can channel conflict arising from the development of the internet channel be minimized? Interview was utilized as a main data collection method in this research. A total of 25 interviews were conducted and the majority of interviewees are managers in Taiwanese IT companies. The main product lines in their firms included wireless equipment, DRAM module, motherboard, and scanner. In addition, a wide range of documents were examined as a secondary data source and compared with data from the interviews. According to the statements from interviewees, six main factors were identified as encouraging the manufacturer to develop the internet channel. These are: (1) customer information management, (2) retailer management issue, (3) launching a new product, (4) to be a secondary channel, (5) management support, and (6) me-too strategy. Furthermore, it seems that when firms are at the different stages of the product life cycle, managers would design their multi-channel structure into different patterns. In addition, a further two conflict resolution styles, communication and differentiation, were found in the sample of firms studied which have seldom been mentioned in previous research and firms appear to adopt different conflict resolution styles according to stage in the product lifecycle.

<p>Today’s companies offer their products and services through multiple distribution channels in an increasing extent, in order to reach bigger markets and more customers. Multiple channels result in an increased risk for channel conflict.</p><p>This essay is an exploratory and descriptive study with the purpose to explore some companies’ channel conflicts on the basis of sales commission and price differences. A case study has been made at two different companies and the empirical material has been collected with qualitative interviews.</p><p>We found more channel conflicts in the company that uses sales commissions than in the company that doesn’t. The results show that sales commission affects channel conflicts. Also price differences tend to affect channel conflicts, but due to the absence of a case company, an empirical study has not been accomplished.</p> / <p>Dagens företag säljer i allt större omfattning sina varor och tjänster via flera distributionskanaler för att nå ut till en större marknad och fler kunder. Fler kanaler medför en ökad risk för kanalkonflikt.</p><p>Denna uppsats är en explorativ och beskrivande undersökning med syfte att undersöka ett antal företags kanalkonflikter utifrån parametrarna Provision och Prisskillnader. En fallstudie har genomförts på två olika företag och det empiriska underlaget har samlats in med hjälp av kvalitativa intervjuer.</p><p>Vi fann fler kanalkonflikter i de företag som använder sig av provisionsbaserad lön än det som inte gör det. Resultaten tyder på att provision påverkar kanalkonflikter. Även prisskillnader tenderar att påverka kanalkonflikter, detta har på grund av frånvaro av undersökningsföretag, dock inte kunnat undersökas empiriskt.</p><p> </p><p> </p>

Today’s companies offer their products and services through multiple distribution channels in an increasing extent, in order to reach bigger markets and more customers. Multiple channels result in an increased risk for channel conflict. This essay is an exploratory and descriptive study with the purpose to explore some companies’ channel conflicts on the basis of sales commission and price differences. A case study has been made at two different companies and the empirical material has been collected with qualitative interviews. We found more channel conflicts in the company that uses sales commissions than in the company that doesn’t. The results show that sales commission affects channel conflicts. Also price differences tend to affect channel conflicts, but due to the absence of a case company, an empirical study has not been accomplished. / Dagens företag säljer i allt större omfattning sina varor och tjänster via flera distributionskanaler för att nå ut till en större marknad och fler kunder. Fler kanaler medför en ökad risk för kanalkonflikt. Denna uppsats är en explorativ och beskrivande undersökning med syfte att undersöka ett antal företags kanalkonflikter utifrån parametrarna Provision och Prisskillnader. En fallstudie har genomförts på två olika företag och det empiriska underlaget har samlats in med hjälp av kvalitativa intervjuer. Vi fann fler kanalkonflikter i de företag som använder sig av provisionsbaserad lön än det som inte gör det. Resultaten tyder på att provision påverkar kanalkonflikter. Även prisskillnader tenderar att påverka kanalkonflikter, detta har på grund av frånvaro av undersökningsföretag, dock inte kunnat undersökas empiriskt.

The aim of this study is to examine the feasibility of the multichannel strategy in a B2B complex product context through an in-depth case study on ABB control systems. Firstly, the study focused on investigating the channel strategy for the current ABB control systems. The channel structure and sales cycle have been identified. Secondly, the study identified the challenges which have existed in the channels for ABB control systems. Channel conflicts and lack of channel integration have been recognized as the major challenges. Finally, the thesis proposed improvement suggestions on how to reduce channel conflicts and increase channel integrations for ABB control systems.

中小企業相對國際企業缺乏資金、人才與經銷通路管理經驗，當進軍國際市場時，絕大部分依賴當地的中間商，因此，選擇合適的中間商是關鍵成功因素之一。 本研究以某台灣電腦機殼公司在北美洲為研究個案，該公司強調「以誠信為基礎的通路策略」與成為「通路掛帥」的公司為目標。本研究探討其進軍國際市場時的通路決策制定過程，其中企業目標與通路策略，對通路設計決策與通路管理有深度的影響力。 另通路結構的長度、寬度及密度是關鍵的策略意圖，足以影響未來通路運作的效率。在通路管理上，提供通路成員訓練、行銷宣傳支援、激勵方案、績效評估等來協助通路成員達成預期的目標。 此外，面對外在經營環境變化與內在營運模式的調整，個案公司採用選擇性通路，以降低通路衝突的機率並提升通路效力。公司在調整通路結構時，改變通路成員的質與量，以達到地理區域的涵蓋度與深耕特定目標市場的目的。同時並採用「與巨人共舞，以小博大」的通路策略，對於選定的少數且極其重要的通路成員採取「深耕、做大」策略。研究中發現大型經銷通路商對於「以誠信為基礎的通路策略」比較認同，且對於個案公司建立通路管理制度的要求全力配合，其通路績效更佳。 最後提出對個案公司的建議: 1.高階主管需參與執行並貫徹「以誠信為基礎的行銷通路策略」。 2.面對快速變遷的外在環境與市場競爭情境，策略的生命週期變短，公司必需隨時檢視、修正或調整國際通路策略。 3.透過企業內部教育訓練，培養高階主管與資深團隊的通路管理能力。 4.台灣總公司OEM/ODM業務與北美全球性經銷商的衝突，亟需建立溝通協調與管控機制。 / Small- and medium-sized enterprises (SMEs), in contrast to large multinational corporations, often lack the financial resources, exposure, and expertise in product distribution channel management. When entering a foreign market, SMEs often have to rely heavily on channel partners. Consequently, selecting the appropriate channel partners is one of the key success factors in channel management. This study examined a medium-sized Taiwanese PC enclosure company as it sought to expand in the North American market. To this end, the company adopted an integrity-based channel management strategy and strived to become a channel champion. The internal decision-making processes for channel partner selection were outlined and the influences of the company objectives on its channel design were analyzed. Furthermore, considerations on the length, width, and density – three important factors to an efficient channel strategy – were introduced. Lastly, methods to support channel partners in the form of product training, marketing and promotional support, incentive programs, and an appropriate performance appraisal system were discussed. To maximize channel efficiency and reduce potential conflicts between channel partners, the company employed a tiered channel strategy. Extending the geographic coverage and penetrating key select markets was achieved by carefully selecting channel partners after weighing in the quality of their downstream distribution channels and their sales volume. Revenue growth in select markets was achieved by leveraging the strengths of a few competent channel partners. These channel partners have subsequently recognized the benefits of the integrity-based channel management strategy and are more committed to fulfilling their roles within the overall auspices of the channel distribution system. Recommendations to the company based on the research findings are the following: 1.The management should be involved and be committed to the implementation of the integrity-based channel management strategy. 2.In the face of constant changes in the business environment, channel strategy should be reviewed and revised anytime. 3.Internal training to senior management to raise their capability of channel stewardship. 4.Establish a mechanism to resolve potential conflicts between Taiwanese OEM/ODM sales team and channel partners in North America.

Yes / The issues of channel conflict and channel power have received widespread research attention, including Geylani et al.’s (2007) work on channel relations in an asymmetric retail setting. Specifically, these authors suggest that a manufacturer can respond to a dominant retailer’s pricing pressure by raising the wholesale price for a weak retailer over that for the dominant retailer while transferring demand to the weak retailer channel via cooperative advertising. But, is online expansion another kind of strategic manufacturer’s optimal response to a dominant retailer? In this paper, we extend this work by adding a direct online selling channel to illustrate the impact of the manufacturer’s internet entry on firms’ demands, profits, and pricing strategies and on consumer welfare. Our analysis thus includes a condition in which the manufacturer can add an online channel. If such an online channel is opened, the channel-supported network externality will always benefit the manufacturer but hurt the retailers. Consumers, however, will only benefit from the network externality when a dominant retailer is present and will be hurt when both retailers are symmetric. / National Natural Science Foundation of China, Chongqing’s Natural Science Foundation, British Academy