Abstract
External environment has a vital impact on channel operation, but it remains unclear how task and institutional environment influence channel members’ governance behavior. With data collected from distributors of a large-scale petrochemical enterprise, this study builds a structural equation model to analyze the influence of channel institutional and task environment on channel members’ governance behavior. The empirical results suggest that, both task and institutional environments are influential to channel governance: when the environment is dynamic and complex, channel partners tend to use relational governance mechanism. When the regulatory environment is influential, contractual mechanism is widely used, while relational mechanism is preferred when cognitive environment is sufficiently powerful. This paper provides new insights into research of channel environment, and also provides practical guidance for channel members.
Highlights
Gordon Moore, the founder of Intel once said, technology of silicon chip involves every 18 months
This study explores the relationship of channel environment, channel governance behavior and channel satisfaction, which is composed of two parts: channel environment → channel governance behavior → channel relational quality
This study builds a structural equation model to explore the relationship of channel environment, governance behavior and channel satisfaction, which is composed of two parts: channel environment → channel members’ governance behavior → channel relational quality
Summary
Gordon Moore, the founder of Intel once said, technology of silicon chip involves every 18 months. In 2015, fifty years after the prediction, Nature proclaimed that in semiconductor industry, the Moore Law may appear invalid, but the generalized Moore Law is working almost in every industry, especially in developing countries such as China,where economy develops rapidly, industrial revolution and upgrading take place frequently, which make the channel task environment more dynamic and complex. Task environmental change is not the only change companies are facing, institutional environment is involving rapidly. As business and economic laws come into effect, the legal system has enforced huge influence on corporation management. Regulators, such as industrial and commercial bureau, are keeping an eye on business operation. Special cultures, norms and customs in China, such as “Guanxi”, are having invisible while important impact on channel management
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