Utilizing Relational Governance in Export Relationships: Leveraging Learning and Improving Flexibility and Satisfaction

Abstract

Exporting manufacturers that pursue international expansion via foreign distributors face a trade off. Their decision to utilize international distributors as a market entry mode reduces some risks; however, the manufacturers do not enjoy control of the foreign channel. Given heterogeneity in global environments and often a significant geopolitical separation between manufacturers and international distributors, the ability to control the behavior of channel partners is inherently reduced. Consequently, natural conditions for opportunistic behavior are created (Karunaratna & Johnson, 1997; Klein & Roth, 1990).

Citation

Roath, A.S. and Sinkovics, R.R. (2006), "Utilizing Relational Governance in Export Relationships: Leveraging Learning and Improving Flexibility and Satisfaction", Arthur Solberg, C. (Ed.) Relationship Between Exporters and Their Foreign Sales and Marketing Intermediaries (Advances in International Marketing, Vol. 16), Emerald Group Publishing Limited, Leeds, pp. 157-185. https://doi.org/10.1016/S1474-7979(05)16007-4