Mitigating the Negative Effect of Social Capital on Marketing Channel Performance: The Moderating Role of Control Mechanism and Absorptive Capacity

Abstract

Abstract: Previous literature of supply chain and marketing channel management show that social capital in the buyer-seller relationship context can promote collaboration and thus increase the performance of both sides. This study extends prior research by considering both the positive and negative effects of social capital in channel relationships. The hypotheses are tested based on 212 Chinese manufacturing firms. Results of the study show an inverted U-shaped relationship between social capital (including relational capital and structure capital) and channel performance. Moreover, the negative effect of relational capital can be mitigated by the control mechanism, such as contract and specific investment, while the negative effect of structure capital can be mitigated by firms’ absorptive capacity. The results provide theoretical implications for manufacturing firms to leverage social capital and thus create value for channel relationship.

Key words: social capital, channel relationship performance, control mechanism, absorptive capacity

Xue Jiaqi, Zhang Zhu. Mitigating the Negative Effect of Social Capital on Marketing Channel Performance: The Moderating Role of Control Mechanism and Absorptive Capacity[J]. Management Review, 2021, 33(6): 167-180.

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