The impact of level of company export development on exercised power in relationships between manufacturers and overseas distributors

Abstract

While there are many studies of domestic distribution channel behaviour, there is far less empirical research relating to the behavioural dimensions of cross‐cultural buyer‐seller interactions. The focus of this study is on the role of a company's export development in influencing the amount of power exercised by exporters in relationships with overseas customers. Specifically, an attempt is made: to examine exporting manufacturer power exercised in trading relationships with overseas distributors; and, to identify differences between two distinct exporter categories in terms of degree of internationalisation, with regard to the level of manufacturer power exercised in such business relationships. Eighty‐seven Greek manufacturer‐German overseas distributor relationships have been studied from the manufacturer's perspective. The findings suggest there are significant differences in the level of manufacturers' exercised power, based on the level of export development. These findings have significant implications for managers, public policy makers, and researchers in the field of exporter internationalisation.