The influence of leadership style on co-operation in channels of distribution

Rajiv Mehtra

International Journal of Physical Distribution & Logistics

1996, Vol. 26, No. 6 P. 32-59

 

1)      Marketing channels

  1. a) Marketing Channels explained
  2. i) Superorganization with the characteristics of complex organization

(1)   Collective goals

(2)   Hierarchical structures

(3)   Integration through subordination

(4)   Formal rules and policies

(5)   Cooperative relationships

(6)   Collective interdependencies

  1. ii) Cooperation

(1)   A combination of object-centered, personal, and collaborator-centered activity

(2)   Based on the compatibility of goals, aims, values

(3)   Cooperation is required for the system to act as a unit

(4)   A state characterized by members willingness to coordinate activities in an effort to help all channel members achieve superordinate goals

  1. b) Current issues
  2. i) External

(1)   Intensification international competition

(2)   Added emphasis in interfirm co-operation

(3)   Leadership behavior as a determinant of co-operation

  1. ii) Channel leadership

(1)   Need to develop long-term relationships

(2)   Need to function effectively to reduce redundancy and inefficient distribution of tasks

iii)     Channel leadership behavior

(1)   Activities undertaken by the channel leader to influence policies and strategies of members and to control aspects of channel operations

(2)   How to secure compliance, alter behaviors and exercise control

  1. iv) Characteristics of a leader

(1)   Personal Characteristics

(a)    Charisma

(b)   Individualized attention and orientation

(c)    Intellectually stimulating the problem solving skills of subordinates

(d)   Motivation

(2)   Other characteristics

(a)    Channel member with greater access to economic, social, and psychological resources assumes the leadership role

  1. c) Schools of Leadership
  2. i) Behavioral approach
  3. ii) Situational approach

iii)     Power-influence approach

2)      Path-Goal Theory of leaderships

  1. a) Defined
  2. i) Certain tasks need to be performed to attain results
  3. b) Four leadership styles
  4. i) Participative

(1)   The degree to which an individual is able to influence decisions

(2)   Subordinates share a significant degree of decision-making power with their superiors

(3)   Channel leader consults with channel members in making decisions

  1. ii) Supportive

(1)   The degree to which the leader creates an environment that facilitates support, mutual trust and respect, helpfulness and friendliness

(2)   Channel leader considers other channel members well-being and looks out for their welfare

(3)   Builds a team climate

iii)     Directive

(1)   The degree to which the leader provides specific direction to subordinates

(a)    Defining tasks

(b)   Assigning work

(c)    Specifying rules

(d)   Scheduling

(2)   Channel leader is enabled to plan, organize, coordinate and maintain control over operations

  1. iv) Achievement

3)      Channel member performance

  1. a) The degree to which the channel member engages in behavior that contributes to the fulfillment of the channel leader’s objectives
  2. b) Each member can influence success or failure in the long run
  3. c) The level of performance for each member is important if a firm is to achieve a differential advantage
  4. d) Measurement
  5. i) Channel Efficiency

(1)   Productivity

(a)    A measure of efficiency in using inputs to generate outputs

(2)   Profitability

(a)    A general measure of the financial performance of channel members

4)      Model

  1. a) Identifies participative, supportive and directive channel leadership styles as determinants of cooperation which is a predictor of channel member performance
  2. b) Hypotheses

(1)   A participative leadership style exhibited by the leader is positively related to a higher level of cooperation

(2)   A supportive leadership style exhibited by the leader is positively related to a higher level of cooperation

(3)   A directive leadership style exhibited by the channel leader is positively related with a higher level of cooperation

(4)   The positive relationship between participative leadership style and member cooperation will be greater than the positive relationship between a supportive leadership style and member cooperation

(5)   The positive relationship between a supportive leadership style and member cooperation will be greater than the positive relationship between a directive leadership style and member cooperation

(6)   Higher levels of cooperation are associated with higher levels of performance

  1. c) Results and conclusions

(1)   Strong empirical support for H1

(a)    Leaders should solicit members suggestions in designing policies

(b)   Members should participate in decision making

(2)   Strong empirical support for H2

(a)    Leaders who are sensitive to the well-being of members will achieve better channel cooperation

(3)   Strong empirical support for H3

(a)    Leaders who establish rules and procedures and communicate channel-wide objectives will achieve better cooperation

(4)   Strong empirical support for H4

(a)    Participative leadership styles create cooperation better than directive styles

(5)   H5 is not supported by results

(a)    Results indicate a preference for directive leadership style over a supportive leadership style

(6)   Strong empirical support for H6

(a)    To the extend that channel members cooperate, channel profitability and productivity is improved for all members