Mechanisms to control the marketing activities of foreign distributors

Abstract

This study provides theoretical and practical insight into the use of control mechanisms in exporter–distributor relationships under different situational circumstances. The results support the different characteristics and requirements underlying three (outcome-based, behavior-based, and relational) types of control. Antecedents used that could affect the use of these control mechanisms were: asset specificity, environmental uncertainty, market knowledge, and resource dependence. A survey among 122 export managers found that by recognizing the characteristics and requirements of the three control mechanisms and their antecedents, exporters will be able to better manage inter-firm controls, which will lead to more effective and efficient export channel management.