Distributor whistleblowing: The effects of manufacturer trustworthiness, opportunism, and transaction contexts

Distributor whistleblowing, which involves disclosing peers’ misconduct to the manufacturer, plays a crucial role in the governance of distribution relationships. This study focuses on the interfirm relationship between a potential distributor whistleblower and a manufacturer to explore the effects of manufacturer characteristics on distributor whistleblowing. In particular, drawing on relational exchange theory and transaction cost economics, this study examines the effects of manufacturer trustworthiness and opportunism on distributor whistleblowing, along with the moderating effects of transaction contexts (distributor relative transaction-specific investment and relationship duration). Data from 211 senior distributor managers reveal that manufacturer trustworthiness has a positive effect on distributor whistleblowing, which is weakened by distributor relative transaction-specific investment and strengthened by relationship duration. In contrast, manufacturer opportunism has a negative impact on distributor whistleblowing that is undermined by relationship duration. These findings provide new insights into how to encourage distributor whistleblowing.