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1 – 10 of over 31000Rajiv Mehta, Alan J. Dubinsky and Rolph E. Anderson
As firms seek to prosper in a fiercely competitive global economy, cooperative inter‐firm alliances among members of the value chain are increasingly being forged. In the area of…
Abstract
As firms seek to prosper in a fiercely competitive global economy, cooperative inter‐firm alliances among members of the value chain are increasingly being forged. In the area of marketing channels, strategic alliances among international channel partners have become the norm as well. Thus, identification of inter‐firm influence strategies – such as different leadership styles – used by the channel captain to motivate international channel partners becomes increasingly important. More specifically, in administering a firm’s marketing channels, participative, supportive, and directive leadership styles may be effective in eliciting channel partners to exert higher levels of motivation, which, in turn, may be associated with higher levels of performance. The linkages among leadership styles, motivation, and performance are empirically examined on data drawn from a sample of automobile distributors in the USA, Finland, and Poland. International channel management implications are discussed, limitations of the study are identified, and directions for future research are suggested.
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Bulent Sezen and Cengiz Yilmaz
The extent of relational behaviors displayed by independent partners in channels of distribution is a critical determinant of the efficiency and effectiveness of distribution…
Abstract
Purpose
The extent of relational behaviors displayed by independent partners in channels of distribution is a critical determinant of the efficiency and effectiveness of distribution operations. The purpose of this study is to focus on the two key antecedents of relational behaviors in channel dyads, dependence on and trust in the exchange partner, and to explore the relative effects of dependence and trust on each of the three major relational behavior forms of flexibility, information exchange, and solidarity.
Design/methodology/approach
Formal hypotheses are developed in the study regarding the joint and relative effects of dependence and trust on each relational behavior. Data collected from 192 automobile dealerships in Turkey are used for testing the hypotheses through separate regression analyses.
Findings
In line with the main study thesis, the results suggest that the relative effects of dependence on and trust in the supplier differ across dealer flexibility, information exchange, and solidarity displayed toward the supplier firms. Theoretical and managerial implications are discussed.
Practical implications
Findings of the study provide guidelines to channel firms in regard to the policies and programs that need to be developed to evoke desired forms of behaviors within their distribution networks.
Originality/value
Considering each relational behavior separately, this study provides support for the view that the emergences of different forms of behaviors in channel relationships occur through different motivational mechanisms.
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Vikas Goyal and Prashant Mishra
The purpose of this paper is to develop a conceptual framework for performance evaluation of channel partners in distribution relationships and develop a scale to measure the…
Abstract
Purpose
The purpose of this paper is to develop a conceptual framework for performance evaluation of channel partners in distribution relationships and develop a scale to measure the proposed dimensions of performance.
Design/methodology/approach
The proposed framework is built on the theoretical foundations of salesforce control systems and organizational performance. The authors developed the measurement scale by the three-stage protocol and established the scale’s reliability, factor structure and validity through the data collected from 252 firm-channel partner dyads across automobile firms in India.
Findings
The proposed framework highlights three distinct dimensions of channel partners’ performance, i.e. output performance, the financial/other objective results; activity performance, the activities, behavior and process-compliance levels; and capability performance, the resources and capabilities of channel partners. An 18-item measurement scale is developed to measure the three proposed dimensions of channel partners’ performance.
Research limitations/implications
The proposed framework conceptualizes the three key dimensions of channel partners’ performance that can assist firms in exercising a focussed approach to performance management in distribution channel relationships and other inter-firm contexts. This study contributes to the legitimacy and further development of research in the area.
Practical implications
The measurement scale provides valid and reliable items for a rigorous performance analyses of channel partners, both at the individual level as well as at the level of the distribution channel as a whole. These performance analyses have multiple applications, right from managing the day-to-day channel activities to steering the channel strategy.
Originality/value
The paper presents a multidimensional conceptual framework for performance evaluation of channel partners and provides a suitable instrument for operationalizing future empirical research in the area.
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Ce (Jacky) Mo, Ting Yu and Ko de Ruyter
To advance research on channel relationship management, this study aims to test for the impacts of a channel member’s perception of exclusion from a supplier’s distribution channel…
Abstract
Purpose
To advance research on channel relationship management, this study aims to test for the impacts of a channel member’s perception of exclusion from a supplier’s distribution channel networks (i.e. out-of-the-channel-loop perceptions [OCLP]) on supplier–channel partner relationships. The authors also systematically develop and empirically validate a scale to measure OCLP.
Design/methodology/approach
This paper reports two empirical studies. The first develops a new scale for OCLP, following established approaches. The second tests the hypotheses. Survey data from a sample of channel firms operating in four industries were subjected to partial least squares modelling in the test of the hypothesized main and moderating effects.
Findings
The authors developed the new scale, including eight items, that capture OCLP from both social and economic perspectives. The results also show that OCLP has negative impacts on channel members’ psychological and behavioural outcomes (satisfaction, information sharing, positive word of mouth), after controlling for the effect of perceived unfairness. Channel partner perceived peer support emerges as a boundary condition of the impact; perceived informational support attenuates, whereas emotional support amplifies, the impact of OCLP.
Research limitations/implications
This study suggests new research opportunities for explaining business-to-business marketing relationships using newly conceptualized OCLP.
Practical implications
This study highlights that suppliers must recognize the potential for negative consequences of OCLP and manage these perceptions to minimize the negative implications. For suppliers, this study also offers several tools for managing OCLP.
Originality/value
This study introduces ostracism concepts to marketing channel literature to study a potential detriment to channel relationships. The proposed scale captures channel partners’ sense of exclusion from supplier relationships. It provides initial insights into the direct impacts on channel relational outcomes and associated boundary conditions.
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Vikas Goyal and Prashant Mishra
The purpose of this paper is to develop a nuanced framework for evaluating a channel partner’s performance in distribution channel relationships. Given a channel partner’s task…
Abstract
Purpose
The purpose of this paper is to develop a nuanced framework for evaluating a channel partner’s performance in distribution channel relationships. Given a channel partner’s task environment characteristics (high/low munificence, dynamism and complexity), the study examines which performance metrics (output, activity or capability) are most relevant for evaluating its performance levels effectively.
Design/methodology/approach
The study adopts self-administered cross-sectional survey-based research design. Matched data were collected from 252 channel partners – manager relationship dyads. The latent change score (LCS) model within SEM framework provides mean paired-differences of the relevance ratings for each metrics. This was used to assess the empirical validity of the hypothesized relationships.
Findings
The study demonstrates the importance of calibrating performance evaluation metrics to a channel partner’s task environment state, made possible by its holistic approach to performance evaluation. Based on an extensive analysis, it shows that no single metric is relevant within all environmental states; rather, it could be dysfunctional, a result that differs from vast majority of the literature.
Research limitations/implications
Investigates individual linkages between task environment dimensions and performance metrics to provide a fuller understanding of these relationships. Also provides a theoretical framework to support further research on the topic.
Practical implications
The study provides managerial guidelines (and extensive graphical analysis) for nuanced and dynamic evaluation of channel partners’ performance that can enable firms to identify and promote their most valuable channel partners and prevent the deterioration of others.
Originality/value
First one to develop and empirically validate a nuanced framework for evaluating performance of exchange partners that operate under diverse task environment states.
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I Made Sukresna, John Hamilton and Singwhat Tee
Paired channel relationship constructs are used to conjointly compare the perspectives of Indonesian manufacturers and their connecting distributors when engaging and relating…
Abstract
Purpose
Paired channel relationship constructs are used to conjointly compare the perspectives of Indonesian manufacturers and their connecting distributors when engaging and relating across each shared marketing channel. The purpose of this paper is to hypothesize long-term orientation (LTO) and role-performance as joint drivers that positively influence dependence, satisfaction, and trust constructs for each manufacturer and distributor domain.
Design/methodology/approach
A structural equation modelling-comparative model is developed, tested, and validated for the Indonesian manufacturing sector. The sample size is 140 pairs of medium-to-large-sized manufacturers and their connecting distributors. The respondent is individual who is responsible and knowledgeable in dealing with his/her company’s manufacturer or distributor.
Findings
Both the manufacturer-distributor LTO and their role-performance jointly drive the outcomes of the shared marketing channel relationship, and both parties’ behaving similarly (except for the influence of their role-performance onto their partner’s satisfaction).
Research limitations/implications
This study have not investigated possible two-way interactions between constructs across the channel. Combined, paired, manufacturer and distributor dataset questions can expose the connectivities relationships between the partners. The insignificant influence of role-performance on economic satisfaction within the manufacturer domain requires further research on the possible presence of mediating construct(s) between those constructs, and on the broadening of the definition of satisfaction. Past channel research revealed that trust interacts with satisfaction, yet this study does not find significant interactions between the outcomes constructs.
Practical implications
In Indonesia each marketing channel’s manufacturer and distributor management team should jointly enhance both their shared long-term relationship, and their respective role-performance. This long-term view is implementable through long-term marketing channel contracts.
Originality/value
This study contributes to marketing channel theory with the LTO and the role-performance of a channel partner jointly driving the other partner’s economic satisfaction, trust, and their dependence specifically within the Indonesian context. The benchmarking of a marketing channel’s performance within a trusting and satisfying channel relationship sets the framework for the development of future optimization studies (of at least the five connectivities constructs used herein).
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It is important for an exporting manufacturer to motivate its foreign channel partners to sell and promote its products. An excellent way to motivate such foreign channel partners…
Abstract
Purpose
It is important for an exporting manufacturer to motivate its foreign channel partners to sell and promote its products. An excellent way to motivate such foreign channel partners is to give them exclusive territories. Unfortunately, there is a lack of knowledge regarding the determinants of territorial exclusivity. This study aims to investigate the relationship between organizational culture and territorial exclusivity and the moderating role of firm size in this relationship.
Design/methodology/approach
Survey data were collected from manufacturing small and medium-sized enterprises (SMEs) in Japan. To test the hypotheses, a regression analysis was conducted using the ordinary least squares technique.
Findings
Empirical evidence shows that the cultural values of collectivism and uncertainty avoidance influence territorial exclusivity; collectivist exporters are likely to use territorial exclusivity, whereas exporters with high uncertainty avoidance are not likely to use it. Furthermore, the larger the firm size, the smaller the impact of cultural values on territorial exclusivity; this suggests that large SMEs do not rely on their organizational culture to make decisions about exclusive territories.
Originality/value
The export marketing literature emphasizes the advantages of exclusive territories. By contrast, the channel management literature suggests that exclusive territories also have disadvantages. As exclusive territories have both advantages and disadvantages, it is crucial to answer the following question: What kinds of exporting manufacturers grant exclusive territories to their foreign channel partners? By addressing this question, this study contributes to a better understanding of export channel strategy.
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Sarin Raju, Rofin T.M., Pavan Kumar S. and Jagan Jacob
In most economies, there are rules from the market regulators or government to sell at an equal wholesale price (EWP). But when one upstream channel is facing a negative demand…
Abstract
Purpose
In most economies, there are rules from the market regulators or government to sell at an equal wholesale price (EWP). But when one upstream channel is facing a negative demand disruption and another positive, EWP can create extra pressure on the disadvantageous supply chain partner, which faces negative disruption. The purpose of this study is to analyse the impact of EWP and the scope of the discriminatory wholesale price (DWP) during disruptions.
Design/methodology/approach
For the study, the authors used a dual-channel supply chain consisting of a manufacturer, online retailer (OR) and traditional brick-and-mortar (BM) retailer. Stackelberg game is used to model the interaction between the upstream and downstream channel partners, and the horizontal Nash game to analyse the interaction within downstream channel partners. For modelling asymmetric disruption, the authors took instances from the lock-down and post-lock-down periods of the COVID-19 pandemic, where consumers flow from BM retailer to OR store.
Findings
By analysing the disruption period, the authors found that this asymmetric disruption is detrimental to the BM channel, favourable to OR and has no impact on the manufacturer. But with DWP, the authors found that the profit of the BM channel and manufacturer can be increased during disruption. Though the profit of the OR decreased, it was found to be higher than in the pre-disruption period. Under DWP, the consumer surplus increased during disruption, making it favourable for the customers also. Thus, DWP can aid in creating a win-win strategy for all the supply chain partners during asymmetric disruption. Later as an extension to the study, the authors analysed the impact of the consumer transfer factor and found that it plays a crucial role in the optimal decisions of the channel partner during DWP.
Originality/value
Very scant literature analyses the intersection of DWP and disruptions. To the best of the authors’ knowledge, this study, for the first time uses DWP as a tool to help the disadvantageous supply chain partner during asymmetric disruptions. The study findings will assist the government, market regulators and manufacturers in revamping the wholesale pricing policies and strategies to help the disadvantageous supply chain partner during asymmetric disruption.
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Jae‐Eun Chung, Brenda Sternquist and Zhengyi Chen
The purpose of this study is to compare two models, traditional‐ and performance‐based, of Japanese retailers' channel relationships. The traditional model proposes Japanese…
Abstract
Purpose
The purpose of this study is to compare two models, traditional‐ and performance‐based, of Japanese retailers' channel relationships. The traditional model proposes Japanese retailers' long‐term orientation with their supplier is an antecedent of Japanese retailers' trust and dependence on the supplier. The performance model, on the other hand, proposes significant influences of suppliers' role performance and dependence on channel relationships.
Design/methodology/approach
Data were collected from Japanese department store buyers and specialty store buyers. A total of 141 cases were analyzed using the EQS structural equation modeling software.
Findings
Results show that the traditional model had a higher explanatory power than the performance model, which indicates the strong influence of culture on Japanese channel relationships.
Research limitations/implications
Some measures have relatively poor psychometric properties. A further study should refine these measurements by exploring the meanings of these constructs from the cultural context.
Originality/value
This study provides insight into how cultural influences are embedded in distribution channel relationships.
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Stephan M. Wagner and Eckhard Lindemann
Companies involved in collaborative channel relationships aim at creating in sum a higher value than each channel partner could achieve on its own. There is relatively little…
Abstract
Purpose
Companies involved in collaborative channel relationships aim at creating in sum a higher value than each channel partner could achieve on its own. There is relatively little empirical insight into what determines the sharing of the “value pie”. Therefore this paper aims to investigate determinants of value sharing in channel relationships.
Design/methodology/approach
Data for testing the hypotheses were collected through a telephone survey of managers from large industrial firms in the automotive, food, engineering and chemicals industries in Germany. Complete information on the study's questions was received from 142 firms, accounting for a response rate of 40.1 percent.
Findings
The results show that customer companies frequently receive larger shares of the value pie, while in most cases the value pie is shared equally. Furthermore, relationship quality, supplier motivation approaches, the goals of the channel relationship as well as the applied sharing principle are all influential in determining how value is shared in corporate practice.
Research limitations/implications
Because all companies in the sample were selected from only four industries, all are among the largest companies in their specific industry, and all are headquartered in Germany, the generalizability of the results is unquestionably limited to similar firms.
Practical implications
Customer as well as supplier firms should incorporate the identified determinants in their partnering and sharing decisions, since they have an impact on the long‐term benefit of channel relationships.
Originality/value
The underlying determinants of the sharing process and the value allocation to the channel partners have so far received little research attention. This paper addresses this situation.
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