Manufacturer channel management behavior and retailers’ performance: an empirical investigation of automotive channel

In a supplier‐dominated channel system, how a supplier manages the channel has profound influence on its retailers’ overall operations. The effect of supplier channel management behavior on retailers’ market orientation and overall business performance is examined in the context of automotive supplier‐dealer relationship. Investigating the effect of channel management behavior along three dimensions, directive, participative, and supportive, the results support that the participative and supportive management styles have a positive effect on market orientation. Further analysis shows that both supplier management leadership and market orientation are linked to various perceptual, productivity, volume, and profit performance measures. The results offer important managerial implications and future research directions.