Understanding the spillover effects of manufacturer-initiated reward on observers’ compliance: a social learning perspective
Journal of Business & Industrial Marketing
ISSN: 0885-8624
Article publication date: 28 November 2022
Issue publication date: 14 November 2023
Abstract
Purpose
Although manufacturer-initiated rewards are widely used to secure distributors’ compliance, the spillover effect on unrewarded distributors (i.e. observers) in the same distribution channel is under-researched. Using insights from social learning theory, this paper aims to investigate how manufacturer-initiated rewards affect observers’ expectation of reward and shape observers’ compliance toward the manufacturer. Furthermore, this paper explores how such effects are contingent upon distributor relationship features.
Design/methodology/approach
To test the hypotheses, hierarchical multiple regression and bootstrapping analyses were performed using survey data from 280 Chinese distributors.
Findings
The magnitude of a manufacturer-initiated reward to a distributor stimulates expectation of reward among observers, which enhances compliance; observers’ expectation of reward mediates the impact of reward magnitude on compliance. Moreover, network centrality (of the rewarded peer) negatively moderates the positive impact of reward magnitude on observers’ expectation of reward, whereas observers’ dependence (on the manufacturer) positively moderates this dynamic.
Practical implications
Manufacturers should pay attention to the spillover effects of rewards. Overall, they should use rewards of appropriate magnitude to show willingness to recognize outstanding distributors. This will inspire unrewarded distributors, which will then be more compliant. Furthermore, manufacturers should know that specific types of distributor relationship features may significantly vary the spillover effects.
Originality/value
This study illuminates the spillover effects of manufacturer-initiated reward by opening the “black box” of the link between reward magnitude and observers’ compliance and by specifying the effects’ boundary conditions.
Keywords
Acknowledgements
The authors thank the editor-in-chief Wesley J. Johnston, the associate editor La Rocca, Antonella, and the anonymous reviewers for their insightful comments on the earlier version of this manuscript. They also acknowledge the financial support provided by National Natural Science Foundation of China (No. 72032006, No. 72002167, No. 71972151, No. 72272119), National Social Science Foundation of China (No. 20&ZD053, No. 20AGL004), and China Postdoctoral Science Foundation (No. 2020M673435).
Citation
Liu, C., Xiao, Z., Gao, Y., Dong, M.C. and Gao, S. (2023), "Understanding the spillover effects of manufacturer-initiated reward on observers’ compliance: a social learning perspective", Journal of Business & Industrial Marketing, Vol. 38 No. 10, pp. 1981-1996. https://doi.org/10.1108/JBIM-02-2022-0078
Publisher
:Emerald Publishing Limited
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