Impact of commitment misperception on channel conflict

Abstract

Purpose This paper aims to evaluate the effect of commitment misperception on channel conflict. It highlights the importance of trust and transaction-specific investments for business marketing strategies. Design/methodology/approach This paper develops a concept framework to understand how the direction (overestimated vs underestimated) and extent of commitment misperception influence channel conflict. The model is tested using dyadic data from 212 distributors and manufacturers across several industries in China. Findings The results show that the direction of commitment misperception affects trust, transaction-specific investments and channel conflict. Overestimated commitment induces positive illusion and enhances trust and transaction-specific investments and reduces channel conflict, whereas underestimated commitment induces negative illusion and reduces trust and transaction-specific investments and enhances channel conflict. Trust and transaction-specific investments mediate the impact of the direction of commitment misperception on channel conflict. The extent of commitment misperception plays the moderating influence on the direction of commitment misperception. Originality/value This study reveals the mechanisms and boundary conditions by exploring the mediating influence of trust and transaction-specific investments and the moderating effects of the extent of commitment misperception.