Network embeddedness as a dependence-balancing mechanism in developing markets: differential effects for channel partners with asymmetric dependencies

Maggie Chuoyan Dong (), Fue Zeng () and Chenting Su
Additional contact information
Maggie Chuoyan Dong: City University of Hong Kong
Fue Zeng: Wuhan University
Chenting Su: City University of Hong Kong

Journal of the Academy of Marketing Science, 2019, vol. 47, issue 6, No 6, 1064-1084

Abstract: Abstract Channel relationships with dependence asymmetry, which are especially harmful to partners with dependence disadvantage, abound in developing markets. To help these dependence-disadvantaged parties find feasible solutions for dependence balancing, this study examines network embeddedness and its differential role in enforcing the counterpart’s relationship-specific investments (RSIs), thus leading to improved channel performance for both partners. Based on the political economy framework, we posit that a dependence-disadvantaged partner’s embeddedness in business and government networks entices its partner to commit more RSIs, which in turn improve its channel performance; conversely, such an effect is weaker for the dependence-advantaged partner. We also predict that under high dependence asymmetry, a dependence-disadvantaged partner’s embeddedness in the business network will exert a smaller effect, but its embeddedness in the government network will exert a larger effect. We collected dyadic survey data of buyer–supplier pairs in consumer product industries in China. In general, the results provide support for our predictions. The findings provide theoretical and managerial implications for partners in asymmetric channel relationships in developing markets.

Keywords: Channel relationships; Dependence asymmetry; Network embeddedness (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://link.springer.com/10.1007/s11747-018-0614-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:joamsc:v:47:y:2019:i:6:d:10.1007_s11747-018-0614-5

Ordering information: This journal article can be ordered from
https://www.springer ... gement/journal/11747

DOI: 10.1007/s11747-018-0614-5

Access Statistics for this article

Journal of the Academy of Marketing Science is currently edited by John Hulland, Anne Hoekman and Mark Houston

More articles in Journal of the Academy of Marketing Science from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().