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Article

Dinesh Sharma, B.S. Sahay and Amit Sachan

Previous research in the area of distributor performance proposed different scales, mostly in western, developed country context. These studies also lacked the…

Abstract

Previous research in the area of distributor performance proposed different scales, mostly in western, developed country context. These studies also lacked the consideration of dynamic interaction between variables, which determine the distributor’s performance. This paper proposes a composite Distributor Performance Index (DPI) to evaluate distributorsperformance based on at the “Enables” and “Results”, taking a system dynamics approach. The model results have been discussed and validated, in business marketing channel. The context of this study is India, an emerging market.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 16 no. 3
Type: Research Article
ISSN: 1355-5855

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Article

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…

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).

Details

Asia Pacific Journal of Marketing and Logistics, vol. 28 no. 3
Type: Research Article
ISSN: 1355-5855

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Article

Tho D. Nguyen and Trang T.M. Nguyen

Realizing the importance of personal interaction in business relationships between manufacturers and distributors, this study aims to explore the role of personal…

Abstract

Purpose

Realizing the importance of personal interaction in business relationships between manufacturers and distributors, this study aims to explore the role of personal interaction in relationship value, and subsequently in distributor performance, in a transition market, Vietnam.

Design/methodology/approach

A sample of 472 distributors in the south of Vietnam was surveyed to test the theoretical model. Structural equation modeling was used to analyze the data.

Findings

It was found that personal interaction drives product support, information support, and delivery performance perceived by distributors. In addition, product support, information support, and delivery performance are key factors that nurture the value of relationships between manufacturers and distributors. Finally, relationship value is a determinant of distributor performance.

Research limitations/implications

A key limitation of this study is the heavy reliance on the hypothetico‐deductive approach. Business relationships of firms in transitional economies, due to differences in cultures and economies, might exhibit some differences in value drivers. An inductive approach may be a suitable alternative method to explore relationship value and its determinants in transition economies like Vietnam.

Practical implications

The results of this study suggest that manufacturers should invest more time and efforts in personal interaction with their key distributors to enhance the value of their relationships with those distributors.

Originality/value

This study is the first of its kind in Vietnam, which explores the role of personal interaction in relationship value in Vietnam.

Details

Journal of Management Development, vol. 30 no. 4
Type: Research Article
ISSN: 0262-1711

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Article

Claude Obadia

This study seeks to investigate the benefits that trigger exporters' attitudinal commitment and examines their effects by taking into account the temporal dynamics of…

Abstract

Purpose

This study seeks to investigate the benefits that trigger exporters' attitudinal commitment and examines their effects by taking into account the temporal dynamics of cross‐border interfirm relationships.

Design/methodology/approach

A qualitative field study led to the generation of hypotheses that were subsequently tested with structural equations modeling using data collected during two consecutive surveys of exporters.

Findings

The economic benefits that foster exporter's commitment include importer's specific investments, importer role performance, and exporter economic performance.

Practical implications

Importers can secure their foreign suppliers' commitment by investing in their business relationships and improving their distributive performance. They also need to monitor exporters' economic performance. The study highlights the importance of exporters' perceptions in building their commitment. Thus, importers need to communicate intensively about their actions to promote exporters' brands.

Originality/value

Unlike previous research, which has focused mostly on behavioral antecedents of commitment, this study depicts the exporting context using the exporter perspective and highlights the importance of economic benefits in shaping their attitudes. A mixed design involving both qualitative and quantitative methodologies facilitates this approach. Relational exchange theory's temporal assumptions about business relationships are reflected by the use of longitudinal data.

Details

International Marketing Review, vol. 27 no. 6
Type: Research Article
ISSN: 0265-1335

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Article

Vasilis Theoharakis, Yannis Angelis and Georgios Batsakis

The importance of architectural marketing capabilities (i.e. marketing planning and implementation) in exporting ventures has been recognised. However, extant literature…

Abstract

Purpose

The importance of architectural marketing capabilities (i.e. marketing planning and implementation) in exporting ventures has been recognised. However, extant literature has not taken into account the explicit roles and required synergy between the exporter and their foreign distributor in delivering these capabilities. Drawing from the resource-based theory, the purpose of this paper is to examine the complementarity of distributor implementation capability and market orientation with exporter planning capability.

Design/methodology/approach

The study was carried out using a survey. Data were collected from 147 Greek exporters who replied to our questionnaire and the hypotheses were tested using the full information maximum likelihood estimation procedure.

Findings

The results support the hypotheses about the importance of exporter planning capability on financial performance and the complementary role of distributor market orientation. Further, the authors find that the distributor’s implementation capability partially mediates the impact of the exporter’s planning capability on financial performance.

Originality/value

This study contributes to a better understanding about the complementarity of exporter and distributor capabilities. It demonstrates the crucial role of the distributor in the deployment of architectural capabilities for the export venture: the distributor’s market orientation and implementation capability have the final say in achieving higher levels of export performance.

Details

International Marketing Review, vol. 36 no. 6
Type: Research Article
ISSN: 0265-1335

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Article

Laura Salciuviene, James Reardon and Vilte Auruskeviciene

The purpose of this study is to examine the antecedents of channel performance in a multi‐level marketing (MLM) channel.

Abstract

Purpose

The purpose of this study is to examine the antecedents of channel performance in a multi‐level marketing (MLM) channel.

Design/methodology/approach

Personal interviews with 105 distributors from network marketing companies operating in Lithuania, provided data for this study. Hypotheses were tested using structural equation model (LISREL).

Findings

The findings suggest that trust, locus of control and shared values are moderated by channel commitment of the downstream channel members.

Research limitations/implications

This study is limited to one country under investigation, therefore further research needs to be extended to other economies. Researchers might also identify additional variables affecting channel performance as well as undertake a longitudinal approach of the focal areas of commitment and channel performance.

Practical implications

This study is of managerial interest, as the framework suggested in this study may be applied by MLM firms to monitor their networks and evaluate multi‐level channel performance.

Originality/value

MLM channels offer a unique alternative and underutilized distribution channel for many companies, yet limited theoretical research has been accomplished in this arena. MLM channels are very interpersonal by their very nature and thus we extend the relationship marketing paradigm to MLM. In addition, transitional economies tend to have less developed marketing channels, and therefore are prime targets for MLM. Thus, this research specifically examines MLM in a transitioning economy.

Details

Baltic Journal of Management, vol. 6 no. 1
Type: Research Article
ISSN: 1746-5265

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Article

Michael Bommer, Brian O’Neil and Shadrach Treat

Competition in the beverage industry is increasing on all fronts (advertising, price, product proliferation, service, etc.). As a result, distributors need to understand…

Abstract

Competition in the beverage industry is increasing on all fronts (advertising, price, product proliferation, service, etc.). As a result, distributors need to understand what is important to retailers and assess how they and their competitors are meeting those needs in the supply chain. In this paper a performance system is proposed to assess the distributor‐retailer interface based on the integration of a number of concepts including customer service, relationship exchanges, competitive benchmarking, order winners (consumer preference perceptions), and portfolio analysis.Various performance matrices are constructed which indicate the importance level and service effectiveness for categories of service provided to retailers. These importance/ performance matrices provide a basis for distributors to develop marketing strategies for categories of retailers, as well as for individual retailers.

Details

International Journal of Physical Distribution & Logistics Management, vol. 31 no. 1
Type: Research Article
ISSN: 0960-0035

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Article

Hong Liu and Yen Po Wang

Examines the pattern of relationships between foreign manufacturing firms and local third‐party distributors and the effective management and co‐ordination of supplier…

Abstract

Examines the pattern of relationships between foreign manufacturing firms and local third‐party distributors and the effective management and co‐ordination of supplier‐distributor relationships in China. Case studies of four foreign‐funded food manufacturers in China have been conducted. Different distributorship and styles of relationship management have been identified in each firm. Major relational constructs examined include channel conflicts and relationships, power sources and relational outcomes. Nine propositions have been derived from the findings. Research and managerial implications have also been discussed.

Details

Journal of Business & Industrial Marketing, vol. 14 no. 2
Type: Research Article
ISSN: 0885-8624

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Article

Roy F. Cabaniss

Discusses a survey which was administered to a group ofmanufacturers wherein they were asked to evaluate the performance oftheir domestic and international distributors

Abstract

Discusses a survey which was administered to a group of manufacturers wherein they were asked to evaluate the performance of their domestic and international distributors. These evaluations were then compared to ascertain potential problem areas for international distributors and those activities which they were doing adequately (according to the manufacturers). Generally, domestic distributors out‐performed their international counterparts, with the distributor′s handling of damaged merchandise and terms of payment being some of the areas where there was not a significant difference. Kenichi Ohmae′s framework for international involvement could be considered to be a firm′s evolution of their international involvement. A firm′s position in this framework was shown to be independent of the time they had been distributing internationally.

Details

International Journal of Physical Distribution & Logistics Management, vol. 25 no. 6
Type: Research Article
ISSN: 0960-0035

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Article

Jiun‐Sheng Chris Lin and Ching‐Rung Chen

How manufacturers select distributors who can contribute to distribution efficiency has become an important issue for channel management. While the last decade has seen…

Abstract

Purpose

How manufacturers select distributors who can contribute to distribution efficiency has become an important issue for channel management. While the last decade has seen large shifts in manufacturing and distribution practices, there has been very little empirical research investigating manufacturers' selection of distributors. This study attempts to fill this research gap by proposing and empirically evaluating factors important to manufacturers when selecting distributors.

Design/methodology/approach

The study developed a research framework for manufacturers' selection of distributors. Four key constructs were derived from marketing, supply chain, and logistics literature to investigate their influences on distributor selection: firm infrastructure, marketing capabilities, relationship intensity, and logistics capabilities. Four hypotheses were developed and tested with a sample of Taiwanese information technology (IT) manufacturers.

Findings

Multi‐item scales were developed and validated through standard psychometric procedures. Hypotheses were tested with ordinary least squares regression analysis. The four constructs were found to have positive influences on manufacturers' selection of distributors.

Originality/value

The paper represents the first study to propose and empirically test a research model examining factors affecting manufacturers' selection of distributors. Distributors can strengthen their competitive advantage by improving their competence in the four dimensions.

Details

Supply Chain Management: An International Journal, vol. 13 no. 5
Type: Research Article
ISSN: 1359-8546

Keywords

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