Transformations  in
Business & Economics

Performance Improvement of Municipalities’ Administration in the Period of Transformations
Česlovas Christauskas, Lina Marcinkevičiūtė, Rūta Petrauskienė

ABSTRACT. The growing complication of the systems of marketing channel is causing more and more conflicting situations among the members of a marketing channel. The conducted research has shown that conflicts of marketing channels are a fatal factor for the performance of a channel. Conflicts have an extreme importance to the relationships between organizations working together; at the same time they influence satisfaction of consumers’ needs. If the impact of the destructive conflict in a marketing channel is not identified early enough, it can destroy all the system of a marketing channel.

Mutual relationships between members of marketing channel emerge because of functional specialization. Members of marketing channel are bound to depend to each other. That is because only the other side help can satisfy their needs. Therefore, the functional mutual relationships require at least minimal coordinative level of tasks and resources in a marketing channel. However, because each organization is instinctively seeking for autonomy, there is a possibility of emerging conflict of interests, while the inter-organizational relationships are forming.

The article is analysing causes of conflicts in a marketing channel, the effect of the conflict to the effectiveness of a channel, as well as possibilities of conflict management.

KEYWORDS: public administration, efficiency, innovations’ development, democratic values and traditions, Lithuania.

JEL classification: H7, H11, H83, P2.