THE EFFECTS OF RELATIONAL CHANNEL EXCHANGE ON THE SMALL FIRM - A CONCEPTUAL-FRAMEWORK

This article advances a conceptual framework of the effects of relatio nal forms of channel governance on small firm effectiveness. Previous studies have found a relationship between aggregate measures of relati onal exchange and firm performance. The framework offered here is more focused and breaks relational exchange down into the five dimensions that we believe have the most important influence on small firm effect iveness. The framework suggests that the trend towards relational exch ange is a mixed blessing for small firms. While on the whole, there ar e many positive aspects of relational exchange, there are also disadva ntages that threaten the traditional strengths of small businesses. Th e proposed framework provides a tool for small business managers to us e in weighing the pulses and minuses of entering a relational exchange . Additionally, the framework provides a point of departure for future research in this important area.