Channel incentives as unilateral and bilateral governance processes

David I. Gilliland, Daniel C. Bello

Research output: Contribution to journalArticlepeer-review


The authors investigate channel incentives as extra-contractual governance processes that maintain and extend marketing channel relationships. More specifically, instrumental incentives are monetary-based payments made by a manufacturer in a unilateral channel arrangement to motivate distributor compliance, while equity incentives are bilateral expectations of fair treatment that motivate both parties to continue to cooperate with one another. A model of the antecedents and performance consequences of channel incentives is conceptualized and tested on 314 marketing channel relationships using a structural equation modeling methodology. The findings support the conceptual model and suggest that unique facets of the channel relationship explain the type of incentive mechanism in use.
Original languageEnglish
Pages (from-to)5-31
Number of pages27
JournalJournal of Marketing Channels
Issue number1-2
Publication statusPublished - 2001


  • incentives
  • governance processes
  • channels of distribution


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