Vertical and horizontal governance in multiple-channel systems

Multiple-channel systems have several characterizing dimensions, as they encompass the concepts of multiple and dual channels. However, neither has been unambiguously distinguished. To clarify this difference, this study separates multichannel system dimensions into two categories: channel variety and duality. We examine how these two dimensions influence vertical and horizontal relationship governance in multichannel systems using survey data from industrial manufacturers. The results of our study show that vertical and horizontal governance positively affect channel performance, and that channel variety has a moderating role in weakening the per-formance effect of vertical governance, while channel duality strengthens this effect. Thus, the findings imply that diversifying channel types makes channel management difficult for manufacturers because of the negative moderating effect of this strategy. Meanwhile, the analytical results on the positive moderating effect of channel duality imply that the concurrent deployment of integrated and independent channels assists in vertical governance between manufacturers and intermediaries.