Recently, with increasing interest in the subject of interfirm governance mechanisms, some marketing channel researchers point out that existing major channel theories are limited in explaining the choice of governance mechanisms in interfirm relation...
Recently, with increasing interest in the subject of interfirm governance mechanisms, some marketing channel researchers point out that existing major channel theories are limited in explaining the choice of governance mechanisms in interfirm relational exchanges. To fully understand interfirm governance mechanisms, we should move away identifying economic structures or relational structures separately, toward considering both economic and relational factors which lead to different combinations of the three distinct governance modes: price, authority, and trust mechanisms. This study suggests that commitment theory can explain both economic and relational dimensions of governance mechanisms. Based on commitment theory, five hypotheses are developed regarding the relationships between commitment and governance mechanisms. As expected, both types of commitment are negatively associated with the use of the price mechanism. The level of attitudinal commitment is positively related to use of the trust mechanism, and negatively related to use of the authority mechanism. The level of continuance commitment is poisitively associated with use of the authority mechanism. The relationship between continuance commitment and trust mechanism is not statistically significant, and more future research is needed to examine the relationship between them.