Relative Deprivation and Resilience in Supply Networks

Abstract

Dealers may experience and perceive varying levels of beneficiary exchange relations in a manufacturer's network. Low-benefit perceiving dealers may experience relative deprivation as compared to their significant others such as better-off dealers of that manufacturer, better-off dealers of a competitor or better-off itself in previous periods, and demonstrate positive or negative reactions to that deprivation. Although manufacturer-dealer exchange (MDX) relations have been studied previously, research on relative deprivation in those relations is nonexistent. Thus, to fill this gap, this study analyzes dealers' relative deprivation in MDX relations with perceived benefits as antecedents and reactions to deprivation as consequences. A multiple-design case approach has been conducted on two manufacturers and their dealers from the Turkish drapery industry. By analyzing dealers in MDX relations from the automotive industry, validation analyzes have been performed. This study has highlighted the importance of dealers' relative deprivation as an issue to be handled in MDX relations. In addition, resilience of dealers appears to be an essential attribute leading to positive reactions to deprivation.