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Article
Publication date: 1 February 1992

Eugene H. Fram

Highlights the importance of selecting the correct internationaldistributors if a firm wishes to trade effectively in the wider market.Describes a study commissioned…

Abstract

Highlights the importance of selecting the correct international distributors if a firm wishes to trade effectively in the wider market. Describes a study commissioned exploring the steps required to minimize the risk when selecting a distributor, e.g. use of end‐user references and suggestions. Concludes that firms need to develop an effective procedure for selecting distributors, utilizing management attention and objectivity to decide on the key factors involved.

Details

Journal of Business & Industrial Marketing, vol. 7 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 1 March 1992

Ricardo Ernst and Morris A. Cohen

Analyses the operational implications of marketing strategies thattry to distinguish between high‐ and low‐priority customers. For ahigh‐priority customer, the distributor

Abstract

Analyses the operational implications of marketing strategies that try to distinguish between high‐ and low‐priority customers. For a high‐priority customer, the distributor is willing to expedite an order from any emergency source. For a low‐priority customer, on the other hand, distributors will back‐order demand. Bases results on a normative model of dealer behaviour developed by the authors. The distributors are assumed to follow a periodic‐review, stochastic‐demand (s, S) inventory control policy. The principal constraint is a minimum level of service (fill rate) which reflects the objectives of the manufacturer. Bases the analysis on a complete experimental design where a distinction is made between exogenous (replenishment lead time and expedite cost) and endogenous (achieved service level and customer prioritization) variables. In addition, identifies small and large distributors as a function of the demand parameters. Results highlight policy options available to the manufacturer to increase the service level of the system, and these are dependent on the size and competitiveness of the market.

Details

International Journal of Operations & Production Management, vol. 12 no. 3
Type: Research Article
ISSN: 0144-3577

Keywords

Book part
Publication date: 20 January 2014

Chwo-Ming J. Yu, Hsiao-Wen Lin and Hui-Yun Chiu

In recent years, many firms from developing countries (LDCs) have engaged in foreign direct investment (FDI). Interestingly some of these firms locate their investments in…

Abstract

In recent years, many firms from developing countries (LDCs) have engaged in foreign direct investment (FDI). Interestingly some of these firms locate their investments in developed countries (DCs) (i.e., upstream FDI), instead of in countries economically similar to or less than their home countries (i.e., downstream FDI). However, only a few researchers have examined the issues related to upstream FDI. Furthermore, when examining FDI, most studies have focused on manufacturing subsidiaries but paid less attention to sales subsidiaries. Due to the differences in nature, management of manufacturing and sales subsidiaries should be different. Using a case study approach and focusing on the behaviors of Taiwanese firms, we address two research questions: (1) what are the channel strategies adopted by the sales subsidiaries of Taiwanese high-tech firms (i.e., multinational corporations (MNCs) from LDCs (LDCMNCs)) in DCs? and (2) how do these subsidiaries manage their channels in DCs? Our findings are: (1) LDCMNCs tend to use multiple sales channels, to work with large national distributors, and to adopt high touch channels to market products in DCs; (2) to reduce channel conflict, less powerful LDCMNCs tend to adopt multiple independent channel system, instead of dual channel system; and (3) due to limited resources, LDCMNCs make more effort on designing channel conflict prevention mechanisms than designing channel conflict resolution mechanisms, emphasize more on building relationships with distributors and tend to use financial incentives/high-power incentives than use other types of incentives to motivate distributors. The findings of this study are helpful for LDC firms to operate their sales subsidiaries more effectively in DCs.

Details

International Marketing in Rapidly Changing Environments
Type: Book
ISBN: 978-1-78190-896-9

Keywords

Book part
Publication date: 18 June 2004

Daniel F Jennings and Kevin G Hindle

Zahra and Covin (1995, p. 46) report that “the current interest in corporate entrepreneurship arises from its potential usefulness as a means for renewing established…

Abstract

Zahra and Covin (1995, p. 46) report that “the current interest in corporate entrepreneurship arises from its potential usefulness as a means for renewing established organizations and increasing their ability to compete in their chosen markets.” In addition, a number of researchers support a contention made by Schollhamer (1982, p. 82), that “corporate entrepreneurship is a key element for gaining competitive advantage and consequently greater financial strength” (Covin & Slevin, 1991; Peters & Waterman, 1982; Zahra & Covin, 1995). Interestingly, however, other researchers argue that corporate entrepreneurship can be risky and may be detrimental to a firm’s short-term financial performance (Burgelman & Scales, 1986; Fast, 1981).

Details

Advances in Entrepreneurship, Firm Emergence and Growth
Type: Book
ISBN: 978-1-84950-267-2

Article
Publication date: 4 January 2022

Tian Wang, Yangyang Liang and Zhong Zheng

The purpose of this paper is to investigate manufacturer encroachment and distributor encroachment in a three-echelon supply chain consisting of an upside manufacturer, an…

Abstract

Purpose

The purpose of this paper is to investigate manufacturer encroachment and distributor encroachment in a three-echelon supply chain consisting of an upside manufacturer, an intermediate distributor and a downside retailer.

Design/methodology/approach

In this paper, the authors use the optimization theory to mathematize the proposed question and build a model. First, the authors consider sequential quantity decisions, where the encroacher decides on the direct selling quantity after determining the retailer's order quantity. Second, the authors relax this sequential decision process assumption by reconsidering a circumstance in which quantity decisions are decided simultaneously.

Findings

In contrast to previous studies, this study shows that in three-echelon supply chains, the upside firm is more likely to encroach compared with the downside firm. The “bright side” of encroachment exists for all players only when the encroachment cost is at a moderate level. However, in manufacturer encroachment under simultaneous quantity decisions, the “bright side” skips the distributor but benefits the retailer directly as the encroachment cost increases from zero to a certain level. The main reason lies in that the distributor loses its pricing power because the end-market has been disturbed by the simultaneous quantity decisions. A comparison of the results of sequential and simultaneous quantity decisions reveals the merit of simultaneous quantity decisions. The authors find that the intermediate role (the distributor in our model) in three-echelon supply chains may benefit more from simultaneous quantity decisions. That is, the distributor may achieve a better profit even in a market with intensified competition.

Originality/value

The findings of this paper contribute to the marketing science literature on encroachment. The majority of existing literature has focused on manufacturer encroachment in two-echelon supply chains. This paper innovatively investigates and compares manufacturer encroachment and distributor encroachment in a three-echelon supply chain.

Details

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

Keywords

Article
Publication date: 13 January 2022

So Won Jeong and Jae-Eun Chung

Building on the resource-based view (RBV), this study examines the differential roles of internal and external social capital (SC) in enhancing the marketing innovation…

Abstract

Purpose

Building on the resource-based view (RBV), this study examines the differential roles of internal and external social capital (SC) in enhancing the marketing innovation (MI), competitive advantage and financial performance of Korean small and medium-sized enterprises (SME) in export markets.

Design/methodology/approach

In total, 197 valid cases were obtained from Korean manufacturing SMEs in the consumer goods sector. Then, a path analysis was employed to test the proposed hypotheses.

Findings

First, SME internal SC positively influenced MI, whereas external SC positively influenced foreign distributor's MI (or foreign distributor MI). Second, SME MI was positively associated with foreign distributor MI. Third, no statistical differences were found in the strength of the paths from foreign distributor and SME MI to competitive advantage. Meanwhile, foreign distributor MI positively affected financial performance more than SME MI. Fourth, SME competitive advantage predicted a positive financial performance. Finally, the effect of SME MI on financial performance had an inverted “U” shape.

Originality/value

This study fills a research gap in the MI literature by identifying MI in terms of its actors (SMEs and their foreign distributors) and examining the differential roles of internal and external SC in MI.

Details

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

Keywords

Case study
Publication date: 19 March 2021

Muhammad Muzamil Sattar and Farhan Shahzad

The learning outcomes of this paper are as follows: understanding the complexities of persuading a distributor to increase investments in the Pakistani fast moving…

Abstract

Learning outcomes

The learning outcomes of this paper are as follows: understanding the complexities of persuading a distributor to increase investments in the Pakistani fast moving consumer goods (FMCG) context. Understanding the data handled by an area sales manager (ASM) for effective territory management, along with the path taken for a focused approach to territory growth. Comparing the distinct perspectives of a company and an intermediary (e.g. distributor) who are pursuing similar business goals. Experiencing hands-on calculations of return on investment (ROI) for a distributor, in a straightforward situation.

Case overview/synopsis

In June 2015, Shah Mir, an ASM at PurePack Pakistan, was face-to-face with an irate distributor named Amir Kazmi, who ran Kazmi Agency in Sukkur, Sindh. PurePack Pakistan, a multinational organization dealing with FMCG products, had a turnover of approximately PKR 7.5bn1 and was a fully owned subsidiary of PurePack Limited, UAE. Shah’s predecessor, Noor Azam, had managed the central Sindh territory very well and had recorded phenomenal growth. The retail outlet coverage had increased during Noor’s time, along with Amir’s investment in the territory. Knowing he was up against an outstanding past achievement, Shah had studied the data of the area and Kazmi Agency’s performance for the past two years and had concluded that there was still greater potential in the area. Amir Kazmi, owner of Kazmi Agency, was an astute businessman who visited his Sukkur market regularly. He knew the distribution business well and had benefitted from it. He was fully aware of the importance of working on relationships with his retailers in the FMCG industry because competition was high and loyalties needed to be nurtured. Like any businessperson, he was concerned about the growth and profitability of his business. Kazmi’s business had increased quite rapidly from a turnover of around PKR 8.7m in 2008 to one of around PKR 54m in 2014, indicating the potential in the Sukkur district. Shah, who was new to the territory and early in his career, was still grappling with the fact that the growth in central Sindh had been phenomenal and that expectations were high for him. He had gotten working on the territory while keeping in mind advice from his boss, Nabeel Asad, who had told him to identify one area at a time so that he could go about achieving his growth targets in a focused manner. This case brings out the challenges that young ASMs face while in the field, when they have to deal with experienced distributors in the Pakistani retail trade, especially in the smaller towns where relationships can greatly affect business. Students will gain an understanding of the key performance indicators required to focus on developmental issues in a territory. It will enable students to appreciate financial considerations as a major tool in dealing with intermediaries (distributors, in this case) and get hands-on experience in a method of convincing a distributor of his past investments and profitability and paving the way for further investment for retail expansion.

Complexity academic level

This case is designed for use at the postgraduate level in sales management, channel management and strategic marketing courses, as well as in executive management programs. It can be used at later stages of a course and show a link between a company’s requirements and a distributor’s goals. The students should have field experience or aspire to get into roles dealing with intermediaries, such as distributors. The case gives students a practical, hands-on experience in working on simple profitability calculations and pushes them to challenge the assumptions that need to be made. The case attempts to trigger a discussion on distributor management and its challenges in Pakistan, where managing relationships while keeping in mind the business perspective is imperative. Identifying the right geographical territories to focus on and working on the financials of the distributor are the key learning deliverables. The case is accompanied by a spreadsheet with calculations. This spreadsheet is for the instructor’s use and is for demonstrating calculations as the class progresses. By using the spreadsheet, the instructor can practically demonstrate the effects that changes in investments, expenses, etc. have on the distributor’s profits. It can even be used to build a far more complex situation than the one given in the case (advice for which is provided in this teaching note).

Subject code

CSS 8: Marketing.

Supplementary materials

Teaching notes are available for educators only.

Details

Emerald Emerging Markets Case Studies, vol. 11 no. 1
Type: Case Study
ISSN: 2045-0621

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…

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…

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

Article
Publication date: 13 February 2017

Jose M. Sanchez, Maria L. Velez, María Ángeles Ramón-Jerónimo and Pedro Araujo

The purpose of this paper is to analyze, for both parties of a distribution channel, to what extent each party perceives the counterpart’s use of performance measurement…

Abstract

Purpose

The purpose of this paper is to analyze, for both parties of a distribution channel, to what extent each party perceives the counterpart’s use of performance measurement systems (PMS) and how this perception affects the perceiver’s own use of these systems, for either decision control or decision management.

Design/methodology/approach

The paper proposes a conceptual model tested at different levels using structural equations models. A case study uses survey data from 107 distributors and 91 manufacturer managers.

Findings

PMS allow evaluation by the manufacturer and daily management by distributors; both uses of PMS can be simultaneous and complementary. Results show that each party’s perception of the counterpart’s use contributes to its own use, although real uses do not significantly influence these perceptions.

Research limitations/implications

The results must be interpreted with caution because the sample is small. This study calls for further data collection in real situations with larger samples, and for eliminating the influence of the distribution channel type. Further work is needed to analyze other constructs driving the relationship between real use and perception.

Originality/value

This study’s originality comes from the conceptual model, data set, and levels of analysis. Decoupling real use and perception, it challenges the prevailing assumption that managers accurately perceive counterpart managers’ use of PMS. Analyzing at both group and individual levels, it extends the more usual dyadic studies by recognizing that any given manager’s perception may be almost wholly formed by his/her interaction with a group of individuals.

Details

International Journal of Physical Distribution & Logistics Management, vol. 47 no. 1
Type: Research Article
ISSN: 0960-0035

Keywords

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