An empirical study on the predictors of long-term orientation in interfirm channel relationships: fast moving consumer goods distributors' perspective

The fast moving consumer goods (FMCG) players in India depend upon distributors for making their products available to the end consumers. Despite being the primary participants in the distribution channel, they are the most invisible part of the channel and hardly get any acknowledgement from the manufacturers. The core objective of this study is the identification and analysis of the predictors on the long-term orientation (LTO) of the distributors in an emerging economy, India. Prominent channel theories power-dependence and commitment trust theory is applied on the structure-conduct-outcome (SCO) framework in the conceptualisation of LTO of the distributor. The conceptual framework was empirically examined through multiple regression analysis by using a sample of 80 FMCG distributors in the National Capital Region of Delhi. The findings of the study reveals that dependence, communication, trade policies, financial performance, new channels and digital support have a significant influence on the LTO of the distributor.