Dissolution intention in channel relationships: An examination of contributing factors

While much attention has been paid to the building of closer relationships between buyers and sellers, relatively little attention has been paid to relationship dissolution. Using social exchange theory as guide, we examine four key unexplored drivers of relationship dissolution intent, namely, goal incongruence, conflict, unfairness, and trust. Our conceptual model is tested using a sample survey from the Korean dairy industry. Results indicate that conflict, unfairness, and goal incongruity increase relationship dissolution intentions while trust reduces dissolution intention. Our results indicate that trust can reduce the influence of unfairness on dissolution intention but it tends to exacerbate the influence of conflict on dissolution intention. We highlight interesting effects of trust and alternative attractiveness on conflict and dissolution intention. Theoretical and managerial implications are discussed.

► Conflict, unfairness, and goal incongruence increase dissolution intention.
► Trust reduces dissolution intention.
► Conflict’s effect on dissolution becomes non significant in the presence of alternative attractiveness and dependence.
► Trust reduces effect of unfairness on dissolution intention.
► Trust exacerbates effect of conflict on dissolution intention.