PRM Scale: An Innovative Tool for Indian Auto mobile Sector

The research study aims at developing a reliable partner relationship management (PRM) scale specific to Indian automobile sector. The review of literature on PRM has revealed a need to develop such scale for more effective implementation of PRM practices with sound value-laden relationship between the manufacturer and the channel partners. Literature review is followed by questionnaire development through depth interview with some of the automobile manufacturers and channel partners belonging to the northern and southern regions of India. A questionnaire survey was carried out and a standard methodology was used consisting of exploratory and confirmatory factor analysis for analyzing data and ultimately for scale development. Findings of the study revealed PRM as a multidimensional construct comprising five factors, namely organizational structure, trust, commitment, customization and market orientation. These factors should be given the utmost importance for relationship enhancement among channel partners specifically in the Indian automobile sector. The novelty of the research work lies in proposing a reliable and valid measurement instrument for enhancing PRM effectiveness.