Search results

1 – 10 of over 7000
Article
Publication date: 7 October 2013

Rodolfo Vázquez-Casielles, Victor Iglesias and Concepción Varela-Neira

This paper seeks to report the results of a study examining the effects of manufacturer-distributor relationships' governance structures (market governance, third-party…

2294

Abstract

Purpose

This paper seeks to report the results of a study examining the effects of manufacturer-distributor relationships' governance structures (market governance, third-party enforcement of agreements and self-enforcing governance modes) on the distributor's willingness to collaborate with the manufacturer.

Design/methodology/approach

To test the hypotheses, survey data were gathered from 224 wholesalers from the food and beverage industry in Spain. Manufacturer-distributor collaboration refers to the possibility of sharing strategic information and encouraging creativity. Regression analyses illustrate the differences in the distributor's willingness to collaborate with the manufacturer under different governance scenarios.

Findings

The study illustrates that the greater the skill of the manufacturers and distributors in developing self-enforcing governance modes (e.g. bilateral formal safeguards and bilateral informal safeguards) that complement third-party enforcement of agreements (e.g. legal contracts), the greater the willingness of both to share strategic information and creativity will be. Furthermore, this investigation delineates the moderating effect of opportunism on the relationship between governance and the distributor's willingness to collaborate with the manufacturer. Finally, the results show that the distributor's willingness to share strategic information has an inverted-U relationship with creativity and innovation development in manufacturer-distributor relationships.

Practical implications

The study's findings allow firms to concentrate their efforts on the most relevant governance structures that minimize transaction costs and provide incentives to develop collaborative manufacturer-distributor relationships and create value for the customer.

Originality/value

The research acknowledges the multidimensional nature of collaboration and goes deeper into the need to share strategic information (external and internal strategic information) and the factors that compose the generation of creative ideas in the manufacturer-distributor relationship (knowledge-sharing routines, learning orientation, open-mindedness and management support). Additionally, although research on collaborative distribution channel practices has advanced over the past decades, the importance of governance structures to the development of collaborative practices has not been firmly established. The paper addresses this void in the literature by reporting the results of an empirical study examining manufacturer-distributor collaborations within the food and beverage industry in Spain.

Details

Journal of Business & Industrial Marketing, vol. 28 no. 8
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 2 October 2017

Rodolfo Vázquez-Casielles, Victor Iglesias and Concepción Varela-Neira

This paper aims to investigate the extent to which relation-specific investments undertaken by the distributor favor the presence of various governance structures (formal contract…

1342

Abstract

Purpose

This paper aims to investigate the extent to which relation-specific investments undertaken by the distributor favor the presence of various governance structures (formal contract and relational governance). Furthermore, it examines whether dependence moderates the effect of relationship-specific investments on these governance structures.

Design/methodology/approach

Survey data were gathered from 224 wholesalers from the food and beverage industry. Hypotheses were tested through regression analysis.

Findings

This study illustrates that property-based relationship-specific investments have a greater positive impact on the use of formal contracts than knowledge-based relationship-specific investments. Furthermore, knowledge-based relationship-specific investments have a greater positive impact on relational governance than property-based relationship-specific investments. The results also suggest that it is necessary to consider the moderating effect of cost-based dependence and benefit-based dependence. Finally, mixed governance structures (e.g. formal contracts combined with relational governance) have a positive impact on satisfaction and intention to maintain and extend the relationship.

Practical implications

The findings allow manufacturers to concentrate their efforts on mixed governance structures facilitating relationship-specific investments and benefit-based dependence from distributors to develop a competitive advantage.

Originality/value

Several investigations have obtained a relationship between investments in specific assets, governance structures and performance. Nevertheless, they have not identified different types of investments in specific assets. This study proposes that there are two types of relationship-specific investments: based on property and based on knowledge. Additionally, a two-dimensional model of dependence (cost-based and benefit-based) allows capturing the different theoretical spheres of this concept.

Details

Journal of Business & Industrial Marketing, vol. 32 no. 8
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 13 June 2016

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 relating…

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

Keywords

Article
Publication date: 1 June 1989

Gary L. Frazier and Sudhir H. Kale

The differences that exist in manufacturerdistributorrelationships across diverse markets and countries have been largelyignored in the marketing channels literature. A…

Abstract

The differences that exist in manufacturerdistributor 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 manufacturerdistributor 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.

Details

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

Keywords

Article
Publication date: 12 June 2009

Akinori Ono and Tomokazu Kubo

Today, it is becoming increasingly important for manufacturers to develop cooperative relationships with distributors and obtain customized distribution services. Previous…

1499

Abstract

Purpose

Today, it is becoming increasingly important for manufacturers to develop cooperative relationships with distributors and obtain customized distribution services. Previous research has suggested that, with specified assets, manufacturers might “hold up” distributors and that such a relationship would not be sustainable. In contrast, the purpose of this paper is to develop a causal model to explain why and how manufacturers intend to extend cooperative relationships with distributors.

Design/methodology/approach

To propose a causal model, two approaches – relationship marketing and transaction cost analysis – are examined. To complement the defects of the two approaches, a repeated game theoretic approach was applied in the causal model. The proposed model is empirically tested with 144 strategic business units of manufacturers and the structural equation modelling. Also, a case from the US and Japanese automobile industries is proffered to discuss the validity of the model.

Findings

The results of the empirical analysis show that asset specificity by distributors increases manufacturers' long‐term orientation, which increases manufacturers' intention to extend the relationship. It was also found that the intention to extend the relationship is reduced by distributors' opportunism. These findings are supported by a case study of the automobile industry in the USA and Japan.

Originality/value

While most previous relationship marketing literature has focused on social psychological constructs, the present paper introduces the viewpoints of a game theoretic approach. The paper proposes a causal model regarding the relationship among asset specificity, opportunism, long‐term orientation and intention to extend the relationship, which successfully explains why manufacturers do not hold up distributors with their specified assets.

Details

Journal of Business & Industrial Marketing, vol. 24 no. 5/6
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 12 April 2011

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 interaction in…

1357

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

Keywords

Article
Publication date: 1 November 2003

Enrique Bigne and Andreu Blesa

This paper studies the relationships between the manufacturer's market orientation behaviours and the distributor's trust in the relationship and satisfaction with it. It also…

3326

Abstract

This paper studies the relationships between the manufacturer's market orientation behaviours and the distributor's trust in the relationship and satisfaction with it. It also analyses the effect of the distributor's trust on his/her satisfaction. Following a review of the literature, three alternative models of relationships between trust and satisfaction are compared. For this purpose the article presents the results of a study of the Spanish ceramic industry. These establish that the effect of the manufacturer's market orientation on the distributor's trust and on its satisfaction with the relationship is different depending on which dimension is considered. The model that best fits the data shows that trust improves the distributor's satisfaction with the relationship.

Details

International Journal of Retail & Distribution Management, vol. 31 no. 11
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 1 February 2003

Santiago González‐Hernando, Víctor Iglesias Argüelles and Juan A. Trespalacios Gutiérrez

Inter‐firm channel relationships have recently attracted great interest in academic research. This paper attempts to make a study of the governance mechanisms in manufacturer

1923

Abstract

Inter‐firm channel relationships have recently attracted great interest in academic research. This paper attempts to make a study of the governance mechanisms in manufacturerdistributor relationships and the role played by the relationalism perceived by channel members. In particular, the aim is to account for why exclusive dealing and exclusive territories agreements frequently appear in association. Two theories are compared regarding this question. In one of the theories relationalism plays a mediating role between both vertical restraints, whereas according to the other theory the relation between the two is independent of the degree of relationalism. A sample of 96 Spanish manufacturers was used to test the hypotheses proposed, obtaining empirical support for both theories.

Details

Journal of Business & Industrial Marketing, vol. 18 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 28 November 2022

Cuijuan 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.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 10
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 5 April 2011

Ram Herstein and Moti Zvilling

The purpose of this study is to define the tasks of product managers from the perspective of professional brand managers and to point out the gaps between their short‐ and…

9450

Abstract

Purpose

The purpose of this study is to define the tasks of product managers from the perspective of professional brand managers and to point out the gaps between their short‐ and long‐term tasks.

Design/methodology/approach

The paper conducted two studies: the first utilized a focus group in order to define the tasks of brand managers. In the second study, 58 brand managers were interviewed using in‐depth interviews in order to define the various factors of each of the nine branding aspects. In the second phase of the second study, the participants were asked to point out gaps between the brand managers' long‐ and short‐term perspectives.

Findings

The findings indicate that the daily pressure on brand managers comes from the distributors, who are the decisive factor in the threefold connection (manufacturerdistributor‐consumer) due to their strong position in the market and the ongoing requirement to learn from and to satisfy them significantly more than the competition.

Practical implications

The implications of the study to the brand managers' approach is that they should nurture relationships with consumers, perform more frequent market segmentations in order to identify new needs, and consequently reduce the distributors' power.

Originality/value

The importance of this research is that it provides a new definition for brand managers' tasks and copes with the real gaps between the short‐term and the long‐term perspectives of brand management, and as such supplies substantial qualitative data for better decision making in accordance with the twenty‐first century challenges of the brand managers.

Details

Qualitative Market Research: An International Journal, vol. 14 no. 2
Type: Research Article
ISSN: 1352-2752

Keywords

1 – 10 of over 7000