Manufacturer–reseller e-business arrangements: The impact of inequity on relationship performance and the moderating role of dependence

•We examine use of e-business tools between manufacturers and resellers.•Ordering benefits reduce reseller perceptions of inequity in the relationship.•Manufacturer's end user related information increases reseller perceptions of inequity.•Perceived inequity negatively impacts the reseller performance.•Inequity to performance link is moderated by reseller dependence on the manufacturer.

Manufacturer–reseller e-business arrangements are changing the nature of channel relationships. When manufacturers supply e-business tools to their resellers, resellers may perceive that the benefits of technology are not shared equitably. This research explores this issue by examining two technology based antecedents of perceived inequity from the reseller perspective. We also examine the impact of perceived inequity on relationship performance, and the moderating role of reseller dependence on the proposed inequity–performance link. The results of the empirical test involving a sample of 224 resellers suggest that perceived inequity negatively impacts relationship performance, while reseller dependence plays a moderating role. Implications of these findings for researchers and managers are discussed.