Performing Export Tasks in Industrial Channels of Distribution

Abstract

This article examines industrial channel management in an international context by analysing whether the industrial firm performs export functions itself or whether it transfers these functions to an export middleman. Export theory suggests that certain firm and market characteristics determine whether these tasks will be self‐performed or spun off to a channel intermediary. Hypotheses based on theory are tested on a sample of 225 Dutch exporters. Export sales volume was found to be associated with the performance of tasks required to stimulate, but not supply, foreign demand. However, industrial exporters tend to self‐perform tasks when middlemen are located in distant foreign markets. The findings suggest that an industrial firm′s desire to control export task performance offsets economic incentives to transfer certain channel functions to export intermediaries.