Flight, Richard L. Henley, John R. Robicheaux, Robert A.
Abstract
This research examines the moderating effects public policy has on relationship strength in a relationship marketing context. Prior research suggests that many positive outcomes emerge from forming inter-firm relationships, yet few examine potential negative outcomes such as anti-competitive behavior. This paper examines what happens to both positive and negative outcomes, when close inter-firm relationships are regulated directly by public policy. It is found that regulations intended to protect consumers and small retailers from anti-competitive behavior are effective in reducing the negative outcomes of such behavior, yet they simultaneously have an unintended effect of dampening the positive outcomes that close inter-firm relationships provide.
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