Partner Relationship Management (PRM) Index: An Innovative Approach For Enhancing Channel Partner Relationships

The purpose of this research article is to develop a valid partner relationship management (PRM) index for enhancing the effectiveness and overall efficiency of channel partner relationships by taking Indian automobile sector as a unit of study. The result of the exhaustive literature review done by authors clearly indicates paucity of such type of standard and valid measure for evaluating PRM effectiveness, which leads this research work with an aim of filling aforementioned gap. A standard and valid methodology for scale development was adopted which resulted in five factor model namely trust, satisfaction, relational communication, collaboration and environmental factors contributing towards PRM. Confirmatory factor analysis was used for validation of proposed structure followed by case-based methodology for development of PRM index. Strategic implication indicates how the effective implementation of PRM practices can create win-win situation for all the parties involved and how PRM index can help in successful implementation of PRM practices. Academically this research is an attempt to propose a PRM index and side by side serve as a tool for enhancing the overall profitability and productivity of Indian automobile sector in most effective and efficient format.