Curtailing opportunism and enhancing compliance in manufacturer-distributor relationships: the stewardship way

Purpose The study aims to theorize and empirically test the direct and indirect mechanisms through which distributors' stewardship orientation (DSO) could increase manufacturer relationship performance (RP). We unveil the mechanisms through the impact of DSO on distributor opportunism and distributor compliance behaviors, which serve as two mediating variables between DSO and RP. Design/methodology/approach A matched cross-sectional survey involving 237 manufacturer-distributor dyads within the Indian fast-moving consumer goods (FMCG) and pharmaceutical sectors was used to empirically test how a stewardship approach through DSO improves manufacturer firm RP. Findings Findings show that distributor opportunism and distributor compliance mediate the positive impact of DSO on manufacturer firm RP. Originality/value This study represents one of the initial investigations emphasizing the importance of DSO in curtailing distributor opportunism and enhancing distributor compliance. The study thus lays the groundwork for future research on stewardship in interfirm contexts.