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1 – 10 of over 6000Cuijuan Liu, Zhenxin Xiao, Yu Gao, Maggie Chuoyan Dong and Shanxing Gao
Although manufacturer-initiated rewards are widely used to secure distributors’ compliance, the spillover effect on unrewarded distributors (i.e. observers) in the same…
Abstract
Purpose
Although manufacturer-initiated rewards are widely used to secure distributors’ compliance, the spillover effect on unrewarded distributors (i.e. observers) in the same distribution channel is under-researched. Using insights from social learning theory, this paper aims to investigate how manufacturer-initiated rewards affect observers’ expectation of reward and shape observers’ compliance toward the manufacturer. Furthermore, this paper explores how such effects are contingent upon distributor relationship features.
Design/methodology/approach
To test the hypotheses, hierarchical multiple regression and bootstrapping analyses were performed using survey data from 280 Chinese distributors.
Findings
The magnitude of a manufacturer-initiated reward to a distributor stimulates expectation of reward among observers, which enhances compliance; observers’ expectation of reward mediates the impact of reward magnitude on compliance. Moreover, network centrality (of the rewarded peer) negatively moderates the positive impact of reward magnitude on observers’ expectation of reward, whereas observers’ dependence (on the manufacturer) positively moderates this dynamic.
Practical implications
Manufacturers should pay attention to the spillover effects of rewards. Overall, they should use rewards of appropriate magnitude to show willingness to recognize outstanding distributors. This will inspire unrewarded distributors, which will then be more compliant. Furthermore, manufacturers should know that specific types of distributor relationship features may significantly vary the spillover effects.
Originality/value
This study illuminates the spillover effects of manufacturer-initiated reward by opening the “black box” of the link between reward magnitude and observers’ compliance and by specifying the effects’ boundary conditions.
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The purpose of this paper is to describe and analyse the shifting perspectives on the organising and the managing of “distribution”, characterised as channels, systems or…
Abstract
Purpose
The purpose of this paper is to describe and analyse the shifting perspectives on the organising and the managing of “distribution”, characterised as channels, systems or networks.
Design/methodology/approach
The paper is based on a review of previous research, identifying three periods featuring diverse conceptualisations: the early distribution literature, the channel management perspective and today’s network approaches.
Findings
The study shows that the early literature relied on holistic framings. This perspective was replaced by the narrower channel management view, influenced by concepts from two evolving approaches: marketing management and behavioural/social schools-of-thought. Changing business conditions eroded the basis for channel management and paid the way for current arrangements, featuring network-like conditions.
Originality/value
Several reviews of distribution have been published, primarily focusing on the specific features of the perspectives applied. This paper emphasises dynamic aspects by attempting to explain how and why new perspectives emerge and the reasons for their reduced significance over time.
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Juan Carlos Pérez Mesa and Emilio Galdeano-Gómez
This purpose of this study is to provide empirical evidence of how cooperation is related to suppliers’ performance, a relationship that is thought to be affected by the type of…
Abstract
Purpose
This purpose of this study is to provide empirical evidence of how cooperation is related to suppliers’ performance, a relationship that is thought to be affected by the type of customer and the extent to which the market is diversified. It analyzes horticultural exporting firms in southeastern Spain, which are the main suppliers of European markets. Together with their primary customers (large-scale retail companies such as Carrefour, Tesco and Aldi), these firms constitute a complex supply network composed of a variety of agents and sales channels. This network will be studied from the perspective of the supplier–supplier relationship that is critical to their survival.
Design/methodology/approach
Starting with a detailed description of Europe’s vegetable supply chain, a hierarchical regression is used with an index of cooperation intensity, moderated by retail sales and market concentration. The authors test the hypotheses using panel data on a set of 118 horticultural marketing firms in southeast Spain for the period 2009-2011.
Findings
Cooperation strategies are shown to have positive effects on performance (market creation, promotion, quality, training, joint supply purchases and research ventures). Moreover, the retail channel and market diversification are observed to have a positive effect on the relationship between cooperation and the supplier’s performance. They demonstrate that active cooperation strategies have a greater bearing on performance in those firms whose primary customers are retailers. This circumstance provides evidence of the synergies and benefits that may arise when the supplier integrates the retailer in the supply chain, but which do not arise with other types of customers.
Research limitations/implications
Although this study refers to a specific sector (fruits and vegetables) and the statistical results are limited, they provide insights that may assist in understanding how other perishable produce-related industries work: such industries share many common features.
Practical implications
A more stable relationship between suppliers and retailers in the perishable produce market will render the supply firm more cooperative, competitive and profitable. Increased performance does not arise from the better conditions and improved sales power offered by the customer but instead from the adaptability of the supplier. Likewise, market diversification drives the supply firm toward a cooperative strategy, making it more profitable and competitive. As a practical norm, market diversification alone will not have positive results on performance unless the firm proves capable of enhancing its capacity for cooperation.
Social implications
Proper management of the agricultural produce supply chain has repercussions on all of the members of that chain, although special emphasis should be placed on producers and consumers. The availability of food, its quality and its safety depend on management during the production phase. Along these lines, and more specifically for the consumer, this work is relevant because the sector analyzed accounts for 40 per cent of the vegetables consumed in Europe.
Originality/value
This article defends the supplier–supplier relationship as the starting point for the analysis of a supply network. In certain sectors, the suppliers’ ability both to solve their clients’ problems and to be profitable is conditioned on maintaining the network and, therefore, the basic focus must center on analyzing their relationships, always including the customer, who has a direct or indirect influence on those relationships. Previous research has not comprehensively addressed this issue, let alone that of a sector with agile and perishable products in which, due to its nature, decision-making about market destinations and sales channels is the order of the day.
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Corporate identity can set a company apart from competition in a way that is hard to duplicate. The result can be a host of profitable benefits.
Relationships are socially constructed by companies in interaction. This study explains the dynamic character of business-to-business relationships with the aid of rules theory, a…
Abstract
Relationships are socially constructed by companies in interaction. This study explains the dynamic character of business-to-business relationships with the aid of rules theory, a theory borrowed from the communications field. Two forms of rules are identified: constitutive rules guide the interpretation of the other's acts, and regulative rules guide the appropriate response to the interpreted act. Rules theory asserts that companies act as if applying these rules. Relationships provide not only the context in which the parties’ acts are performed but are also the result of such acts. Thus, relationships are potentially reshaped each time one party performs an act and the other party gives meaning to that act and reacts.
Arlene Tuang and Christina Stringer
Emerging economies provide a challenging backdrop for the building of trusting and committed cross‐border relationships; weak legal institutions and a turbulent business…
Abstract
Purpose
Emerging economies provide a challenging backdrop for the building of trusting and committed cross‐border relationships; weak legal institutions and a turbulent business environment necessitate such relationships between business partners to effectively cope with external instabilities. The purpose of this paper is to focus on foreign supplier‐incumbent industrial distributor relations in the emerging economy of Vietnam.
Design/methodology/approach
The paper is an exploratory and expository study of relationship marketing incorporating personal experiences and the opinions of five incumbent industrial distributors in Vietnam.
Findings
Using Lewicki et al.'s multi‐dimensional conceptualization of trust (which included the dimension of distrust), this exploratory study corroborated with preceding works in identifying some of these positive consequences of trust; but diverged from this research area, by also identifying the areas of distributor distrust that marked out the constraints of the relationship. Trust and commitment was found to be context‐dependent, where the narrative of a “good relationship” was contextually bound by the individual distributors' various experiences in Vietnam.
Originality/value
This paper allows researchers and practitioners to gain an understanding of the business environment and to build a contextual picture of the challenges faced by distributors operating in Vietnam.
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The ideas expressed in this work are based on those put intopractice at the Okuma Corporation of Japan, one of the world′s leadingmachine tool manufacturers. In common with many…
Abstract
The ideas expressed in this work are based on those put into practice at the Okuma Corporation of Japan, one of the world′s leading machine tool manufacturers. In common with many other large organizations, Okuma Corporation has to meet the new challenges posed by globalization, keener domestic and international competition, shorter business cycles and an increasingly volatile environment. Intelligent corporate strategy (ICS), as practised at Okuma, is a unified theory of strategic corporate management based on five levels of win‐win relationships for profit/market share, namely: ,1. Loyalty from customers (value for money) – right focus., 2. Commitment from workers (meeting hierarchy of needs) – right attitude., 3. Co‐operation from suppliers (expanding and reliable business) – right connections., 4. Co‐operation from distributors (expanding and reliable business) – right channels., 5. Respect from competitors (setting standards for business excellence) – right strategies. The aim is to create values for all stakeholders. This holistic people‐oriented approach recognizes that, although the world is increasingly driven by high technology, it continues to be influenced and managed by people (customers, workers, suppliers, distributors, competitors). The philosophical core of ICS is action learning and teamwork based on principle‐centred relationships of sincerity, trust and integrity. In the real world, these are the roots of success in relationships and in the bottom‐line results of business. ICS is, in essence, relationship management for synergy. It is based on the premiss that domestic and international commerce is a positive sum game: in the long run everyone wins. Finally, ICS is a paradigm for manufacturing companies coping with change and uncertainty in their search for profit/market share. Time‐honoured values give definition to corporate character; circumstances change, values remain. Poor business operations generally result from human frailty. ICS is predicated on the belief that the quality of human relationships determines the bottom‐line results. ICS attempts to make manifest and explicit the intangible psychological factors for value‐added partnerships. ICS is a dynamic, living, and heuristic‐learning model. There is intelligence in the corporate strategy because it applies commonsense, wisdom, creative systems thinking and synergy to ensure longevity in its corporate life for sustainable competitive advantage.
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Deals with brand management issues concerning brand as a resource for an industrial distributor. The brand resource can either be controlled by the producer – producer brand – or…
Abstract
Deals with brand management issues concerning brand as a resource for an industrial distributor. The brand resource can either be controlled by the producer – producer brand – or the distributor – private label brand. Analyzes the characteristics of managing the brand resource depending on whether it is a producer or private label brand. This is done from the perspective of the distributor. In order to undertake this research task, a theoretical framework derived from the industrial networks approach is used. The designed framework focuses on three central concepts – the resource intradependence, the resource interdependence, and the resource interdependence connection. The framework is analyzed on three respective levels, i.e. the company, the relationship and the network levels, and we present the results of the analysis, which indicate what influences the opportunities and constraints that management are faced with when making decisions concerning branding in an industrial context. The data has been collected through personal interviews among paper producers and paper merchants within the fine‐paper industry in the UK.
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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.
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Gary L. Frazier and Sudhir H. Kale
The differences that exist in manufacturer – distributorrelationships across diverse markets and countries have been largelyignored in the marketing channels literature. A…
Abstract
The differences that exist in manufacturer – distributor relationships across diverse markets and countries have been largely ignored in the marketing channels literature. A conceptual framework is built designed to explain how the initiation, implementation, and review of manufacturer – distributor relationships are likely to vary, based on whether such relationships take place in buyers′ markets in developed countries or in sellers′ markets in developing countries. Several cultural and structural dimensions of markets in developing countries also play an important role in the conceptual framework. A comparative channel systems approach is taken and a number of propositions are developed that require empirical testing in the future.
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