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Article
Publication date: 5 March 2020

Chao Feng, Guijun Zhuang, Hui Chen and Daxian Hu

Based on social network theory and the literature of contract governance, the purpose of this study is to explore how distributors’ “banding together” (network intensity) affects…

Abstract

Purpose

Based on social network theory and the literature of contract governance, the purpose of this study is to explore how distributors’ “banding together” (network intensity) affects contract governance (detailed contracts), which, in turn, influences channel conflict and simultaneously tests the moderating effect of network centrality.

Design/methodology/approach

The authors collect the data from the side of 288 manufacturers.

Findings

This study finds that, first, distributors’ network intensity positively affects detailed contracts between manufacturers and distributors; second, detailed contracts, in turn, declines channel conflict; and third, network centrality will weaken the positive influence of network density on detailed contracts. In addition, an ex post analysis finds that detailed contracts play a negative mediating role between distributors’ network density and channel conflict and this negative mediating effect would be weakened by distributors’ network centrality.

Originality/value

The current study not only helps to make up for the shortcomings of using the dyadic analysis paradigm to analyze channel behavior but also helps manufacturers to understand and respond to the phenomenon of distributors’ “banding together” comprehensively and deeply.

Details

Nankai Business Review International, vol. 11 no. 4
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 28 September 2020

Yi Liu, Ting Liu, Yuan Li and Liyang Ruan

Previous studies have investigated the influence strategy–economic satisfaction links within a pairwise framework. This study aims to reexamine this issue in a network context…

Abstract

Purpose

Previous studies have investigated the influence strategy–economic satisfaction links within a pairwise framework. This study aims to reexamine this issue in a network context from both the structural and relational embeddedness perspectives.

Design/methodology/approach

An ego network approach in which the network consists of a focal distributor, other distributors and alternate manufacturers is adopted to measure the distributor’s network. Drawing on data from 124 distributors from China’s tire industry, a hierarchical multiple regression analysis is used to test the hypotheses.

Findings

The empirical results find a positive relationship between a manufacturer’s noncoercive influence strategies and the distributor’s economic satisfaction and an inverse U-shaped relationship between coercive influence strategies and economic satisfaction. It discusses the joint effects of coercive and noncoercive influence strategies and finds that the former mitigate the positive effects of the latter and that the latter flatten the inverse-U shaped effect of the former. Further, when a distributor spans rich structural holes, the effects of coercive and noncoercive influence strategies on economic satisfaction weaken. When a distributor has strong ties with its network members, the effects of noncoercive influence strategies are mitigated, while the effects of coercive influence strategies are enhanced.

Practical implications

This study provides implications for manufacturers, particularly concerning how to properly exert influence strategies to improve distributors’ economic satisfaction. Manufacturers should consider the attributes of the networks in which the distributors are embedded, involving structural holes and tie strength. They should also carefully use the two influence strategies simultaneously.

Originality/value

This study contributes to the influence strategy literature by incorporating a network perspective by empirically examining the different moderating effects of structural holes and tie strength; provides a new and powerful explanation for the effects that coercive influence strategies have on economic satisfaction by testing an inverse U-shaped effect; and examines the effects of the interaction of two strategies.

Details

Journal of Business & Industrial Marketing, vol. 37 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 1 December 2020

Guangkuan Deng, Jianyu Zhang and Zhiwen Fan

In this paper, extending the research on the positive effects of marketing channel conflicts, this paper aims to examine how functional and dysfunctional conflicts influence…

Abstract

Purpose

In this paper, extending the research on the positive effects of marketing channel conflicts, this paper aims to examine how functional and dysfunctional conflicts influence channel innovation capability by triggering channel cohesion and investigate the moderating role of a distributor’s network structure.

Design/methodology/approach

Based on social network theory and Coser’s conflict theory, this paper develops a framework, tested using Chinese manufacturers’ data, which incorporated six key variables, namely, functional conflict, dysfunctional conflict, channel cohesion, channel innovation capability, network density and network centrality.

Findings

The empirical results revealed that functional conflict can arouse channel cohesion and that distributor network density and centrality positively moderates this relationship; dysfunctional conflict negatively affects channel cohesion, but distributor network density negatively moderates this relationship; channel cohesion had a mediating effect on the relationship between channel conflict and channel innovation capability.

Originality/value

This paper contributes to the research on channel conflict by incorporating the entire channel system’s innovation capability as a positive consequence of channel conflict and expands the channel conflict literature that adopts a network structure perspective.

Details

Nankai Business Review International, vol. 12 no. 2
Type: Research Article
ISSN: 2040-8749

Keywords

Abstract

Subject area

Marketing.

Study level/applicability

Target audience this decision case has been tried and tested in a classroom setting with final-year undergraduate BBA students and postgraduate students studying an MSc in marketing. The specific course in which this case was used was marketing management in China. This case may also be suitable for an undergraduate or masters level courses in consumer behaviour, distribution management or marketing in China. The case covers environment analysis, market segmentation, consumer behaviour and distribution channels.

Case overview

Skyworth, a Chinese manufacturer of television sets, was faced with some major decisions. Government subsidies on consumer purchases of household appliances had stimulated demand for TV sets especially in rural areas. However, there were limited distribution channels serving rural areas. Large-scale nationwide chain stores like Gome and Suning served mainly urban areas and top-tier cities. These retailer chains were less interested in selling TV sets as their profit margins were lower. How should Skyworth set up its distribution network to take advantage of the growth in rural markets? Establishing its own channel network would involve huge investments that would affect Skyworth's profits in the next few years. Relying on existing retailer chains may not give it the coverage it wanted. Skyworth's brand reputation had also suffered because of poor product quality and customer support. Can the distribution channel network help to improve its brand reputation and customer loyalty? This case highlights how government policies in China can shape the growth of the household appliance market and change consumption patterns.

Expected learning outcomes

By studying this case, students will: 1. Examine how environmental factors affect television manufacturers in China; 2. Understand the buying behaviour of rural households for household appliances; 3. Examine distribution channels in an emerging market; 4. Evaluate a company's product portfolio strategy; and5. Suggest segmentation bases for the market for television sets in China.

Supplementary materials

Teaching Notes are available for educators only. Please contact your library to gain login details or e-mail support@emeraldinsight.com to request teaching notes.

Details

Emerald Emerging Markets Case Studies, vol. 3 no. 4
Type: Case Study
ISSN: 2045-0621

Keywords

Article
Publication date: 4 June 2019

Priyanka Sharma, Raghu Nandan Sengupta and J. David Lichtenthal

The purpose of this paper is to highlight various aspects of business-to-business brand equity (B2BBE) and explain relative impact of marketing/advertising, research and…

Abstract

Purpose

The purpose of this paper is to highlight various aspects of business-to-business brand equity (B2BBE) and explain relative impact of marketing/advertising, research and development (R&D), human resource and distribution network to build compelling business brands that display better firm performance.

Design/methodology/approach

A total of 51 in-depth semi-structured interviews with distributors and industrial buyers revealed different facets of B2BBE. Generalized method of moments (GMM) was applied on a large-scale panel data set of industrial firms to estimate the effects of firms’ R&D, advertising/marketing, distribution and staff training (proxy to sources of B2BBE) on sales.

Findings

First, varying levels of product application criticality and end-customer brand stature reflect four distinct organizational purchase requirements, namely, assured performance, prestige, brand leaders and commodity. Second, a taxonomy of five sources of B2BBE (prominence, solutions, accessibility, relationships and network strength) manifests buyers’ interactive experience during the purchase cycle. Third, it illustrates the positive short-term effect of all explanatory variables coupled with the positive long-term impact of R&D on sales.

Practical implications

Features like B2C brand image, clear and precise product information, credit/flexible payment terms, distributor image, add-on services to the core product and upstream–downstream referrals characterize strong brands. GMM model results help managers, in budget allocation.

Originality/value

The originality of this paper lies in proposing a comprehensive B2BBE framework based on triangulation; deployment of a common structure to simultaneously investigate distributors and industrial buyers, to discover whether their philosophies reinforce/undermine industrial branding strategies; and suggesting the use of GMM model to arrive at actionable insights.

Details

Marketing Intelligence & Planning, vol. 37 no. 7
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 13 August 2018

Lala Hu

The purpose of this paper is to analyze the distribution strategies implemented by foreign firms in emerging markets, and to investigate whether they represent an opportunity for…

1002

Abstract

Purpose

The purpose of this paper is to analyze the distribution strategies implemented by foreign firms in emerging markets, and to investigate whether they represent an opportunity for firms to innovate their practice. China is selected as the setting of the investigation as distribution is a critical determinant of business success for international firms operating there.

Design/methodology/approach

A multiple-case study approach is adopted by investigating the distribution strategies of four Italian firms in China. The collected data consist of interviews with firm managers and their distributors. To ensure triangulation and cross-verify the findings from the primary data, secondary data consisting of sector reports and newspaper articles were analyzed.

Findings

Results discuss how foreign firms develop their distribution system in China and suggest that emerging markets can enable reverse innovation in their distribution strategies.

Research limitations/implications

The research suffers from the limitations of the generalizability of the findings as the study was carried out on a restricted number of firms, and it considered their strategies in one single market.

Practical implications

Managerial implications are discussed on the extent to which the Chinese distribution system still represents a key issue for foreign firms, but it also provides with opportunity for innovation.

Originality/value

While previous research on innovation in emerging markets has mainly focused on product innovation, this study suggests some areas for distribution innovation.

Details

European Business Review, vol. 30 no. 5
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 10 August 2020

Suraksha Gupta

The purpose of this paper is to explore how brand managers can motivate resellers who are not directly associated with the brand and know the brand through a local or a national…

Abstract

Purpose

The purpose of this paper is to explore how brand managers can motivate resellers who are not directly associated with the brand and know the brand through a local or a national level distributor. Findings of this study provide insights into factors that can lead a brand manager motivate resellers through a reseller motivation pyramid.

Design/methodology/approach

Using qualitative data collected from brand managers, different themes of reseller motivations were evaluated.

Findings

An overlap between organizational goals, resource-related needs and capabilities of resellers are indicative of modification required in reseller management strategy to keep resellers motivated.

Research limitations/implications

This research suffers from lack of quantitative data that could enable the researcher to establish the linkages discussed.

Originality/value

This research extends current understanding about intrinsic motivations of resellers to promote a brand in competitive markets.

Details

Qualitative Market Research: An International Journal, vol. 23 no. 4
Type: Research Article
ISSN: 1352-2752

Keywords

Article
Publication date: 1 June 1988

Imagine books the size of credit cards — to read them all you need to do is put the card in a portable book‐sized reader. This is the concept behind the Smart Book which has been…

Abstract

Imagine books the size of credit cards — to read them all you need to do is put the card in a portable book‐sized reader. This is the concept behind the Smart Book which has been developed and tested in Australia over the last few years. The companies behind the joint venture are James Hardie Industries Limited, one of the top fifty public companies in Australia, Weldon International, one of Australia's larger book publishers, and Megaword International Pty Limited, the originator of the product concept

Details

The Electronic Library, vol. 6 no. 6
Type: Research Article
ISSN: 0264-0473

Article
Publication date: 18 October 2022

Md Imtiaz Mostafiz, Farhad Uddin Ahmed and Paul Hughes

This study investigates how firms build strong dynamic marketing capability (DMC) from open innovation (OI) to enhance the performance of entrepreneurial firms. Moreover, this…

Abstract

Purpose

This study investigates how firms build strong dynamic marketing capability (DMC) from open innovation (OI) to enhance the performance of entrepreneurial firms. Moreover, this study unfolds DMC's mediating and moderating mechanisms underlying inbound and outbound OI and performance relationships, respectively.

Design/methodology/approach

To test the research model and hypotheses, this study drew a sample of 251 firms operating in Malaysia using the time-lagged survey method. Structural equation modelling was used in this study to investigate the model relationships.

Findings

The findings of this study reveal the positive interplay between inbound OI (knowledge acquisition) and DMC. The outbound OI (knowledge exploitation) in this study is found to mediate the relationship between inbound OI and firm performance. In addition, while the DMC has a mediating effect in the relationship between inbound OI and firm performance, such a capability reinforces the positive relationship between outbound OI and performance.

Originality/value

This study provides a noble insight into the complex interplay between OI and entrepreneurial firms' performance by developing and testing an integrated framework underpinned by a knowledge-based view and dynamic capability theory. The findings highlight the significance of taking an interdisciplinary and integrated approach to better understand the determinants of entrepreneurial firms' performance in an emerging country context.

Details

International Journal of Entrepreneurial Behavior & Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 8 May 2019

Yi Liu, Jiaqi Xue and Yuan Li

Rather than focussing on dyadic distributor–supplier relationships, this study aims to examine whether the difference in transaction-specific investments (TSIs) between rival…

Abstract

Purpose

Rather than focussing on dyadic distributor–supplier relationships, this study aims to examine whether the difference in transaction-specific investments (TSIs) between rival suppliers in a supplier–distributor–supplier triad influences whether distributors expropriate or maintain their supplier’s TSIs.

Design/methodology/approach

Drawing on triadic data from 276 questionnaires that address both the supplier–distributor relationship and the rival supplier–distributor relationship, a moderated regression analysis is used to test the hypotheses.

Findings

Five out of six hypotheses are supported by the empirical test. The results show that the supplier’s TSIs increase the distributor’s opportunistic behaviour and reduce cooperation when the distributor perceives that the supplier’s TSIs are lower than those of a rival supplier. In contrast, when the distributor perceives that the supplier’s TSIs are higher than those of a competitor, the supplier’s TSIs do not improve cooperation and can shift the link between the supplier’s TSIs and the distributor’s opportunism from being positive to negative.

Practical implications

The findings have implications for the top managers of supplier firms embedded in distribution networks. This study suggests that the competitor’s TSIs can be regarded as an indicator of the supplier’s relationship with the distributor. By keeping an eye on their competitors’ TSIs, the top managers of suppliers can predict the likelihood of distributors’ opportunistic and cooperative behaviour and make efforts to improve their position by adjusting their own firm’s TSIs. Furthermore, this information can help suppliers decide on their investment strategies and maintain stable and healthy relationships.

Originality/value

This study 1) examines the effect of TSIs using a triadic framework and triadic data and demonstrates that how a distributor responds to a supplier’s TSIs, with either opportunism or cooperation, depends on the relative level of those TSIs in focal and competitive relationships; and 2) reveals the expropriation effects and restraint effects of TSIs by drawing on prospect theory. This finding indicates the dynamics of TSIs in a triadic relationship.

Details

Journal of Business & Industrial Marketing, vol. 34 no. 6
Type: Research Article
ISSN: 0885-8624

Keywords

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