Managing channel conflicts: how do expert power and reward power contribute?

Purpose In business-to-business (B2B) context, channel conflict is inevitable and rampant. Manufacturer-led channel leaders (CLs) often use expert power to mitigate conflict, but how CL’s expert power influences channel members’ (CMs) behaviour is still unexplained. Thus, the study aims to investigate the impact of expert power on intra-channel conflict along with relationship norms, environmental munificence, and agent dependence. The study also examines moderation and mediation effects to delineate the influence of expert power on intra-channel conflict. Design/methodology/approach The study uses the theoretical underpinnings of social exchange theory (SET) to conceptualize a research model. Cross-sectional data are collected from CMs dealing with steel products through a structured questionnaire approach. Hypotheses testing are performed by using structural equation modelling. Findings The results reveal a positive association of expert power with relationship norms, agent dependence and environmental munificence. Further, findings suggested that expert power and agent dependence positively associated to intra-channel conflict, whereas environmental munificence negatively associated to intra-channel conflict. The mediating effects of environmental munificence and agent dependence are established. Also, the conditional moderating effects of reward power are also established. Originality/value Limited studies have empirically investigated the role of expert power and reward power on managing intra-channel conflict. The study examines the relationships and enhances the knowledge body of conflict in channel management. Further, the study confirms the relationships of relationship norms, agent dependence, and environmental munificence with intra-channel conflict. Additionally, the study uses SET and extends it to the context of channel management.