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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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

First one to develop and empirically validate a nuanced framework for evaluating performance of exchange partners that operate under diverse task environment states.

The present competitive marketing environment demands effective role of distribution channels to create and develop a value-based infrastructure where companies can easily distribute their products into the consumers’ market. Relationship bonding between the channel partners and the company strengthens marketing efficiencies of the distribution function, which is supported by policies of the companies relating to joint business actions and value sharing. Both the tangible functional value and emotional functionalities play a vital role in the continuous success and the growth of distribution channel. The purpose of this paper is to understand the value-based distribution channel relationship for greater channel equity in fast-moving consumer goods (FMCG) sector.

The present study used a survey design to collect data from 156 FMCG channel members selected through stratified random sampling procedure. A five-point Likert-type scale was personally administered to obtain participants’ responses. Data were analysed using the Relative to an Identified Distribution (RIDIT) approach.

The findings of the current research paper have demonstrated that in the current competitive marketing environment, only the functional values are not enough. This research paper identifies that there is a strong need of emotional touch and linkages which leads to a symbiotic channel–company relationship and commitments in FMCG industry.

The present research is an original and innovative thought process of evaluating factors influencing the value-based distribution channel relationship for greater channel equity pertaining to FMCG industry by using the RIDIT approach.

One of the main functions of culture is division of labour among various actors in society. Since the global environment is characterised by diverse and deep‐rooted cultural norms and value systems, the nature of this division of labour across cultures should exhibit systematic differences. Channels of distribution are primarily designed to facilitate division of labour, and channel relationships should therefore reflect the underlying cultural tenets of society. Using Hofstede′s schemata to classify various national cultures, a series of propositions is generated on how distribution channel relationships will vary across countries based on their positions on Hofstede′s four dimensions of culture.

Strategic partnering is a method of developing a relationship between two members of a distribution channel based on the growth of understanding, trust and shared information. It does not rely on personal relationships between individuals but is initiated at the highest management levels and becomes a part of the corporate structures concerned. The resulting development of integrated marketing plans, joint strategies and tactics allows the partner organisations to develop and maintain strategic fit between their capabilities and goals and their changing market opportunities. Electronic data interchange technology confers direct benefits through lower transaction costs, faster response times and more cost‐effective service to customers.

This study empirically explores one of the important channel issues – the relationship between various channel support given to channel partners and the perceived (by managers) goal‐orientation of a firm. Results from an emerging market, India, indicate that perceived orientation towards both profitability and market share is not associated with any of the channel support considered. Growth orientation however is strongly associated with most of the channel support activities – both business (e.g., business advice, pricing and ordering assistance, and personnel training) as well as marketing (advertising support, sales promotional material, and inventory management assistance) oriented activities. In contrast, perceived sales volume orientation is only associated with advertising support and business advice, however, the relationship is negative. These findings have interesting implications for channel management and channel motivation.

This paper aims to determine the relationship between dynamic marketing capabilities (DMCs) and the integration of distribution channels of exporting companies from Latin American (LATAM) countries and how this relationship will impact the international development of a company.

This qualitative study uses the explanatory multiple case approach of Yin (2011) to test the research questions, revise existing theories and establish causal relationships from semi-structured interviews that were applied to 15 Peruvian and Colombian companies. To analyze qualitative data and ensure credibility, the authors applied six stages of Sinkovics and Alfoldi’s (2012) methodology. For analysis, computer-based qualitative software was used.

The study reveals the following: a set of specific DMCs that effectively help agro-food companies generate synergy with their intermediaries to launch their first international ventures; a better understanding of how the market orientation as a DMC is, rather than a multi-dimensional organization which mediates other marketing processes; the impact of DMCs in channel integration that changes with respect to agents and distributors. Producers and distributors developed networking, market adaptation and innovation capabilities. At the same time, agents also developed market orientation capabilities to provide relevant product information, manage transactions and fulfill orders without regard to market adaptation capabilities.

Qualitative methodology was applied, limiting the generalization of the findings. The authors also emphasized the initial stages of internationalization without considering other advanced processes that could be useful for larger LATAM companies, which operate in different foreign countries and manage multiple channels. As a result, this study lays the foundation for establishing a model that will enhance a quantitative measurement to support the findings.

This study illustrates specific marketing techniques that are useful to better identify and coordinate intermediaries, especially agents and distributors to ease their internationalization processes. The research also provides a framework for marketing managers to leverage the DMCs developed by the different actors of the distribution channel, as well as, obtaining positive outcomes in communication, information on products and services, transactions and customer service functions. Finally, managers and professionals can find a methodology to evaluate how DMCs can be developed to optimize their internationalization processes through the integration of the main channel functions. This will broaden their vision on the usefulness and scalability of this type of dynamic capabilities in key business processes for the generation and sustainability of competitive advantages.

If producers identify DMCs, they will promote ethical business practices that may reduce their vulnerability and risk with more experienced international intermediaries. This leads to favoring the socio-economic equity of the territories with traditional economies in which they operate.

The study provides a set of DMCs that influence the functions of distribution channels and favors international processes in small and medium enterprises which then offer a better understanding of the definition and applicability of this construct in the agro-food sector in LATAM. This study also gives a structural perspective to determine which functions of the distribution channel should be integrated and how depending on the type of intermediary (agents and distributors).

Globalization of organizations necessitates the development of a network organizational configuration. This new form of organization requires managers to become boundary spanners between the various organizations aligned in the global business network. The question becomes how are these boundary‐spanning managers going to be identified and selected for global assignments. This paper examines the staffing options for marketing managers of integrative (i.e. relational) and market (i.e. transactional) modes of norm‐based control of global channels of distribution. Both transaction cost analysis and focus theory are used to identify which control mechanism would be most appropriate for each inter‐organizational situation.

Within the fast-moving consumer goods (FMCG) supply chain, one of the problems facing the distribution channel strategy is the presence of the gray market. The article shows two novel antecedents of the participation of official distributors in this gray channel: Negative impact on distributor performance and the relationship with their supplier. Knowledge of this background helps to preserve the strategy outlined for the official distribution channel.

Data were collected from 172 Spanish wholesale distributors and analyzed using PLS-SEM.

The authors found that the damage through negative affectation in the official distributor's performance and the cooperation provided by the manufacturer, have different effects. While affectation is shown to be a powerful antecedent of participation in the gray market, the effect of perceived manufacturer cooperation does not show strong results.

In business practice, these findings lead the manufacturer to keep transactions carried out in the gray market at low levels and provide cooperation to official distributors to guarantee the official channel strategy aimed at efficiency in the distribution of branded goods.

The background of the gray market discussed in the study has not been previously analyzed in the literature. In this way, the authors contribute to the knowledge of such a common problem as the presence of the gray market in the segmentation of distribution channels of high-demand products.

Building on encapsulated interest account and motivated cognition account, this study aims to investigate how channel members extend trust in a channel leader when the channel leader applies various non-coercive power sources (e.g. referent, expert, legitimate and reward power). Besides, the study explored the changes in channel members’ trust in a channel leader when each non-coercive power source is coupled with coercive power sources.

Using survey items from previously validated scales, the study collected responses from 237 channel members of 3 paint distribution channels in India. Data were analysed using structural equation modelling and multi-group moderation analysis techniques.

Findings indicated that expert and reward power sources enhance trust in channel leaders while affective commitment mediates the effects of all the non-coercive power sources on trust. Further, coercive power weakens the effects of expert power on trust.

The study is based on a cross-sectional survey and confines to the paint industry in India. Replicating this study in other countries and industries will better generalise the study’s findings.

The study recommends that channel managers use power sources to build trust in channel leaders. Consequently, they will be able to emphasise those specific power sources while developing channel management strategies.

The study contributes to a greater understanding of the power-trust relationship.