Exporter trust, commitment and marketing control in integrated and independent export channels

Abstract

This article explores differences between three entry modes—sales subsidiaries, agents and distributors—along four dimensions—trust, commitment, marketing control and performance. It is posited that trust, commitment, marketing control and performance are highest in integrated modes (like sales subsidiaries) and lowest in distributor relationships, the agency solution being situated somewhere in between. These hypotheses are tested in a sample of 260 exporter intermediary relations of 120 Norwegian exporters. Concerning marketing control the hypotheses are confirmed. On the other hand—there is virtually no difference between agents and distributors on two other dimensions: trust and commitment. Here the dividing line goes between integrated and independent channels. Concerning financial performance, there is no significant difference between the three modes of entry. However, integrated modes of entry seem to meet exporter expectations better than independent solutions regarding the more general performance measure, ‘goal achievement’. Implications for research and management are discussed.