Interfirm monitoring, social contracts, and relationship outcomes

This article examines the effects of monitoring on interfirm relationships. Whereas some research suggests that monitoring can serve as a control mechanism that reduces exchange partner opportunism, there is also evidence showing that monitoring can actually promote such behavior. The authors propose that the actual effect of monitoring depends on (1) the form of monitoring used (output versus behavior) and (2) the context in which monitoring takes place. With regard to the form of monitoring, the results from a longitudinal field study of buyer–supplier relationships show that output monitoring decreases partner opportunism, as transaction cost and agency theory predict, whereas behavior monitoring, which is a more obtrusive form of control, increases partner opportunism. With regard to the context, the authors find that informal relationship elements in the form of microlevel social contracts serve as buffers that both enhance the effects of output monitoring and permit behavior monitoring to suppress opportunism in the first place.42

Interpersonal influence as an alternative channel communication behavior in emerging markets: The case of China

Channel communications in emerging markets are embedded in the intricacy of economic and sociocultural environments. Managing channel relationships in emerging markets therefore requires more than formal interfirm communication to rely on interpersonal influence. Extending embeddedness theory, we offer a conceptualization incorporating three embedding elements – task environment, social relations, and institutional norms – into a preliminary model that specifies the antecedents, moderators, and contingent consequences of interpersonal influence strategies in marketing channels. Specifically, dependence, firm boundary spanners’ social capital, and their cultural values (e.g., guanxi orientation) may combine to shape firm boundary spanners’ use of interpersonal influence in channel communications, which in turn affects channel member satisfaction. In a Chinese marketing channel context, we test our research hypotheses with parallel analyses of 395 matched supplier–retailer dyads. The empirical results provide general support for the predictions, and reveal differences between suppliers and retailers in terms of the focal effects. Journal of International Business Studies (2009) 40, 668–689. doi:10.1057/jibs.2008.84