Manufacturer-Overseas Distributor Relations and export Performance

Abstract

The export arrangement which makes use of overseas distributors is examined in this article. Although this method is important for many manufacturers operating in foreign markets there are reservations about the performance levels that are achieved under such arrangements. It is suggested that there is an important link between the performance level achieved and the very nature of the relationship that exists between the manufacturer and overseas distributor. The authors assert also that the nature of the manufacturer-overseas distributor relationship is associated with certain characteristics of the participating companies; namely, their stake in the relationship, their experience, and their uncertainty surrounding the relationship. These propositions are tested and largely corroborated through analysis of data collected from 41 companies in Canada and the UK.