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Introduction
Researchers contend that conflict is inevitable and endemic in nearly all channel relationships. As conflict is a deterrent for smooth functioning and performance of a channel, the importance of understanding the determinants of channel conflict gains significance. In response to the rising significance of understanding conflict, researchers have examined many possible determinants of conflict in distribution channel relationships over the past few decades (Gaski, 1984; Geyskens et al., 1999; Rutherford et al., 2012). Additionally, Geyskens et al. (1999) conducted a meta-analysis in the domain of satisfaction in marketing channel relationships. However, owing ubiquity of internet and internet channel in the past two decades, there might be several changes in the nature and scope of channel conflict and consequent conflict arising from it. In the past two decades, there are major changes in the relationship norms between channels and firms, overall financial performance of firms and relationship-specific activities undertaken by firms due to increasing ubiquity of internet channel (Harris and Cohen, 2003; Palmatier et al., 2016; Paul, 1996; Sharma and Gassenheimer, 2009; Sharma et al., 2010; Webb and Hogan, 2002).
More specifically, the emergence of electronic commerce has forced many manufacturers to adopt multiple channels to lower distribution cost and to reach unexplored markets (Chiang et al., 2003; Rangaswamy and Van Bruggen, 2005; Palmatier et al., 2016; Sharma and Gassenheimer, 2009; Sharma et al., 2010). Multi-channel approach resulted in re-demarcation of territories leading to more friction between channels (Lee et al., 2003; Sharma and Gassenheimer, 2009; Sharma et al., 2010). Additionally, intensified competition between internet channel, distributers and wholesalers has given rise to more conflict amongst them (Bannon, 2000; Cunningham, 2013; Sharma and Gassenheimer, 2009; Sharma et al., 2010; Gassenheimer et al., 1995).
Hence, in concurrence with past research, we contend that there are several challenges in managing multi-channel approach such as understanding priorities for channel members, resolving channel conflicts, creating channel synergies and identifying optimal channel mix (Achrol and Etzel, 2003; Rosenbloom, 1973). More recently, the complexity of channel conflict has increased owing to firm’s concomitant desire to reduce costs, improve efficiency and offer greater presence posing potential constraint in building channel firm relationship (Cunningham, 2013).
Finally, the micro and macro environment (Srivastava...