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Marketing Letters
Published in: Marketing Letters 1/2021

08-10-2020

Reward strategy spillover effects on observer cooperation in business networks

Authors: Hannah S. Lee, David A. Griffith

Published in: Marketing Letters | Issue 1/2021

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Abstract

Drawing on social comparison and equity theory, this study examines the influence of reward strategies a manufacturer in a focal dyad employs on the cooperative behaviors of other observing firms in a dealer network. We test the hypotheses using a survey of 234 auto manufacturer–dealership relationships. The results reveal that (1) reward observation frequency has a negative effect on the cooperation of observers, (2) observer network centrality amplifies the negative effect of reward observation frequency on the cooperation of observers, and (3) network density dampens the negative effect of reward observation frequency on the cooperation of observers. The findings suggest that managers must be aware of the nuanced consequences of this “spillover” effect of rewards in shaping their influence strategies within the context of the larger business network.
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Appendix
Available only for authorised users
Footnotes
1
Within-dyad reward frequency had a significant, positive effect on observer cooperation (β = 0.291, p < .001).
 
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Metadata
Title
Reward strategy spillover effects on observer cooperation in business networks
Authors
Hannah S. Lee
David A. Griffith
Publication date
08-10-2020
Publisher
Springer US
Published in
Marketing Letters / Issue 1/2021
Print ISSN: 0923-0645
Electronic ISSN: 1573-059X
DOI
https://doi.org/10.1007/s11002-020-09543-7

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