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In recent years, many firms from developing countries (LDCs) have engaged in foreign direct investment (FDI). Interestingly some of these firms locate their investments in developed countries (DCs) (i.e., upstream FDI), instead of in countries economically similar to or less than their home countries (i.e., downstream FDI). However, only a few researchers have examined the issues related to upstream FDI. Furthermore, when examining FDI, most studies have focused on manufacturing subsidiaries but paid less attention to sales subsidiaries. Due to the differences in nature, management of manufacturing and sales subsidiaries should be different. Using a case study approach and focusing on the behaviors of Taiwanese firms, we address two research questions: (1) what are the channel strategies adopted by the sales subsidiaries of Taiwanese high-tech firms (i.e., multinational corporations (MNCs) from LDCs (LDCMNCs)) in DCs? and (2) how do these subsidiaries manage their channels in DCs? Our findings are: (1) LDCMNCs tend to use multiple sales channels, to work with large national distributors, and to adopt high touch channels to market products in DCs; (2) to reduce channel conflict, less powerful LDCMNCs tend to adopt multiple independent channel system, instead of dual channel system; and (3) due to limited resources, LDCMNCs make more effort on designing channel conflict prevention mechanisms than designing channel conflict resolution mechanisms, emphasize more on building relationships with distributors and tend to use financial incentives/high-power incentives than use other types of incentives to motivate distributors. The findings of this study are helpful for LDC firms to operate their sales subsidiaries more effectively in DCs.

The purpose of this paper is to identify the mechanisms adopted by the distribution channel of a leading Brazilian truck manufacturing company, which generates various conflicts that have a negative impact on the performance of the channel operations, with a focus on the conflict causes. The study aims to expand the domain of distribution channel conflict management as a benchmark activity by exploring the potential sources of conflict occurring in a major Brazilian distribution channel.

The research method is exploratory, using a case study from a major company of the automotive sector of Serra Gaúcha, Brazil. The distribution processes are analyzed in a real and specific context, implemented by means of individual, in‐depth interviews, with the application of a basic script of questions.

The findings indicate the existence of seven potential sources of conflict and 23 conflicting issues, considered relevant and of negative impact on the distribution channel performance of the manufacturing company.

The sample cannot be considered as representative but it is, to a certain point, reliable because it refers to one entity only.

The results of this research can serve as indicators for managers of a company to invest time and the necessary resources for the maintenance and consolidation of the relationships with its dealerships.

The present work shows its originality through the study of consumers' preference for determined products and services as a conflict management basis for Brazilian national distribution channels' stakeholders. In this context, a distribution channel conflict case study may constitute an important empirical source of data for a benchmark strategy.

In this paper, extending the research on the positive effects of marketing channel conflicts, this paper aims to examine how functional and dysfunctional conflicts influence channel innovation capability by triggering channel cohesion and investigate the moderating role of a distributor’s network structure.

Based on social network theory and Coser’s conflict theory, this paper develops a framework, tested using Chinese manufacturers’ data, which incorporated six key variables, namely, functional conflict, dysfunctional conflict, channel cohesion, channel innovation capability, network density and network centrality.

The empirical results revealed that functional conflict can arouse channel cohesion and that distributor network density and centrality positively moderates this relationship; dysfunctional conflict negatively affects channel cohesion, but distributor network density negatively moderates this relationship; channel cohesion had a mediating effect on the relationship between channel conflict and channel innovation capability.

This paper contributes to the research on channel conflict by incorporating the entire channel system’s innovation capability as a positive consequence of channel conflict and expands the channel conflict literature that adopts a network structure perspective.

Today’s dynamic markets are forcing firms to design increasingly complex channel strategies involving multiple channels of distribution. As the complexity of these systems increases, so too does the opportunity for conflict between individual channel coalitions within the firm. Whereas this hybrid channel conflict can reduce channel performance, it can also serve as a mechanism forcing internal channel coalitions to work harder and smarter to serve their markets. In this paper, we develop and test six hypotheses related to hybrid channel conflict. The findings indicate that hybrid channel conflict is an important determinant of both channel performance and satisfaction. The results suggest further that the relationship between hybrid channel conflict and channel performance is moderated by the lifecycle stage. Moreover, our data support the view that the frequency of conflict, but not its intensity, has a negative effect on channel system performance. We conclude with a discussion of the theoretical and managerial implications of this study.

Introduction The purpose of this paper is to explore possible mechanisms that could be employed by members of a distribution channel to increase the level of meaningful communication among them, especially in actual or potential conflict situations. Pragmatically, our concern is with achieving the establishment within a channel of superordinate goals—goals greatly desired by all those caught in dispute or conflict which cannot be attained by the resources and energies of each of the parties separately, but which require the concerted efforts of all parties involved. It is proposed here that channel members approach the state where they can adopt such goals as communication and interaction between them increase.

In dual distribution channel systems, integrated channels (manufacturer-owned) and independent channels (distributor-owned) are likely to adopt destructive behaviours. To suppress such behaviours, manufacturers need to implement conflict management systems. The purpose of this study is to examine the moderating role of conflict-learning capability (CLC) in the relationship between conflict management system and destructive behaviour. This study also investigates whether interactions between conflict management systems and CLC improve the overall channel performance.

Using survey data from 157 Japanese industrial manufacturers, this study conducted regression analyses and mediation analyses.

The results show that boundary and compensation systems have different effects on destructive behaviours. On the one hand, compensation systems with strong CLC have a larger impact, although those with weak CLC can also suppress destructive behaviours to some degree. On the other hand, boundary systems with strong CLC suppress destructive behaviours, but those with weak CLC do not. In addition, this study reveals that manufacturers with strong CLC can indirectly improve overall channel performance by implementing conflict management systems and suppressing destructive behaviours.

Previous studies reveal that boundary and compensation systems suppress destructive behaviours. However, these studies neglect the importance of organisational capability in the successful implementation of conflict management systems. By focusing on CLC, this study advances our understanding of dual distribution and channel conflict.

The purpose of this paper is to explore channel conflict from the small retailer’s perspective in the context of emerging economies. The study investigates the factors and probable outcomes of perceived channel conflict.

A qualitative research design is adopted. This study involves semi-structured in-depth interviews with 14 small retailers, selected through the purposive sampling technique, in a capital city of North India.

This exploratory study reveals five key reasons for channel conflict in the context of small retailers: coercive sources of power, retailer dependence, competitive intensity, retailer characteristics, and distributors’ role performance. The findings also highlight channel exit and passive acceptance as two probable outcomes of perceived channel conflict. Conflict may also lead to changes in the channel structure, which may significantly affect the success of multinational firms in emerging economies. The paper concludes with a discussion and presents an agenda for further research.

Channel conflict is a well-researched area, but the context of most existing studies has been larger retailers in developed economies. The findings of this study provide the reasons for and outcomes of the channel conflict encountered by small retailers in emerging economies. This study should be of interest to marketing managers, especially of consumer packaged goods firms, who want to succeed in emerging economies. These managers can use insights from the study to manage channel conflict in the context of small retailers.

This paper aims to study the positive impact of functional conflict and conflict management in improving supplier–reseller relationship performance in multi-channel setting (reseller together with supplier’s sales reps). The authors develop four hypotheses, including direct and mediated effects, about conflict management, conflict and the impact on channel performance.

The authors’ sample of suppliers in the information and communication technology (ICT) industry in Brazil consists of an interesting setting of multi-channel distribution, as suppliers deal with sales reps in combination with reseller channels to offer products to customers. The sample is representative of the industry, including more than 60 per cent of the ICT suppliers. The model was tested with partial least squares in the context of ICT industry in Brazil.

The empirical test shows that although an increase in functional conflict improves channel performance (direct effect), an excessive increase may amplify the dysfunctional conflict, thereby damaging channel performance (indirect effect). The negative interplay between the two natures of conflicts is counterbalanced with conflict management. Results show that conflict management improves channel performance by decreasing the harmful effects of dysfunctional conflict. This paper contributes to the theory by deepening our understanding of conflict, a critical challenge underlying supplier–reseller relationships in marketing channels. For managers, this research clarifies the importance of considering and managing conflict of different nature in the context of multi-marketing channels.

The contribution of the authors’ study is twofold. First, they develop an integrative mediating model with key constructs of multi-channels’ conflict and channel performance. They incorporate the causal relationships between functional and dysfunctional conflict, conflict management and channel performance into a single conceptual framework. This integrative mediating model to the best of their knowledge has not been developed before. Second, they provide managers with a broad understanding of conflict management implications to supplier’s multi-channel strategy, and how functional conflict can actually be beneficial for channel performance.

Channels of distribution are basic to the marketing strategies of firms, and have been shown to be a key element in the marketing mix. The author here undertakes a comprehensive review of channels literature, primarily to identify and assess the adequacy of the various mainstream conceptual schemes which have emerged. Economic‐based arguments have largely been at the core of channels literature, although these have been partially offset by the concepts of the organisational and behavioural schools. The author concludes that whereas every conceptual approach reviewed has added something to our cumulative knowledge, no single approach has yet reached a point of adequate conceptualisation based on his own basic criteria. As yet channels literature is mainly descriptive, and has virtually no predictive power.

This study provides an insight into and a solution for the conflict among marketing channel members in China. It also examines the application of a Western channel conflict management (CM) model in China and suggests future research directions for CM of marketing channel members.

A replication research study with extensions was conducted following previous studies' suggestions. Using a Chinese sample, the author further evaluates a Western conceptual framework with hypothetical relationships of variables. Different from the original study using students in a simulated network environment, this study used channel members involved in actual network activities. Data were collected by a questionnaire survey and analyzed.

The results show CM of channel members in China and do not fully support the hypotheses in the Western model. This study identifies the determinants of an effective approach toward resolving conflicts among members from the perspectives of network outcomes, conflict types and management styles. The choice of CM style is imperative to member performance, especially for achieving specific network outcomes or CM goals.

This study contributes to existing studies of CM of marketing channel members by providing empirical evidence of managing conflict of members in the Chinese channel, revealing the effectiveness of CM of members with different cultural norms, providing managers with practical solutions to effectively manage conflicts among members and providing future research directions regarding this topic.