The Impact of Monitoring on Reseller Slackness: The Mediating Role of Channel Conflict.

Purpose: The purpose of this study is to examine how monitoring influences reseller slackness. We try to answer the following: (1) How do monitoring (behavior monitoring and output monitoring affect reseller slackness? (2) What is the mechanism by which monitoring affects reseller slackness? Methodology/approach: The study proposed a theoretical framework using behavior monitoring, output monitoring, and channel conflict as the antecedents, as well as reseller slackness as a consequence. To validate the model, we collected data from resellers across multiple industries in China and analyzed data from 222 valid responses using multiple regression methods. Findings: Supplier behavior monitoring decreases reseller slackness, whereas supplier output monitoring increases it. In addition, channel conflict mediates the impact of monitoring on reseller slackness. Research implications: Based on the expectation that the partnership will grow in the long term, both partners should minimize channel conflict, and resellers need to curb their slack behavior. While output monitoring can give resellers more freedom to make decisions, this study shows that output monitoring can exacerbate inter-firm conflict and promote reseller slackness. Therefore, managers should be cautious about using output monitoring strategies for reseller slackness management. Practical implications: Our findings suggest that behavior monitoring can mitigate channel conflict and reduce reseller slackness. However, output monitoring can facilitate channel conflict, promoting reseller slackness. As a result of these findings, suppliers can better manage reseller slackness by understanding the effects of different types of monitoring. Originality/value: This study makes two contributions to existing literature. Firstly, it empirically examines the role of behavior and output monitoring on reseller slackness, thus enriching the existing literature on reseller slackness. Secondly, it further clarifies the specific pathways through which monitoring affects reseller slackness and lays the foundation for future research on managing it. [ABSTRACT FROM AUTHOR]