Distributor Relationships Research Articles

Brand Adoption by BoP Retailers

The article brings out the major factors that bottom-of-the-pyramid (BoP) retailers consider when adopting brands. It suggests that, besides the known variables of profitability, relationship and merchandise, these retailers attach importance to efforts that lead to reduced perceived risk. These include replacement and buyback facilities besides credit. They define the relationship with distributors/wholesalers not just as firm-firm business-based, but also as stemming from familial, social and ethnic dimensions. Based on 472 responses of acceptance or rejection from BoP retailers from rural India, the findings show a positive, significant relationship with brand characteristics. On the other hand, product-related factors showed a significant but negative relationship. The study found a significant but negative association between distributor relationship and probability of adoption, which should be considered in conjunction with credit, replacement and buyback facilities. The authors suggest that, while brand demand is a significant factor, strategies based on service-dominant logic would be more effective in sustained adoption of brands among small retailers.

Trust Formation in Food Manufacturer–Distributor Relation in Africa: Evidence From Tanzania

This article looks at the formation of trust in developing economies focusing on food manufacturer–distributor relationship. The study used the descriptive phenomenological method to understand how actors in the food value chain develop trust in a business environment where one cannot enforce the contract. In general, the study identifies three dimensions of trust in the food manufacturer–distributor relationship in Tanzania, namely, the use of personal relationship, social gathering and trade credit. The article shows the implication of the study to managers and policy and areas for further research were provided.

The influence of psychological contracts on exporter–distributor relationships and export venture performance: the conditional role of institutional distance

PurposeThis study explores the influence of informal “psychological contracts” (PCs), (as opposed to formal contractual relationships) on exporter–distributor relationships.Design/methodology/approachData were obtained from a sample of 127 exporting small and medium-sized enterprises (SMEs) in New Zealand. The authors employed partial least squares structural equation modeling (PLS-SEM) for analyzing the measurement and structural models.FindingsPsychological contract fulfillment (PCF) enhances affective commitment and calculative commitment. Moreover, affective and calculative commitments mediate the relationship between PCF and export venture performance (EVP). The authors also find that institutional distance (ID) weakens the relationship between PCF and both affective and calculative commitment. Additionally, ID moderates the strength of the mediating mechanism for affective commitment; thus, the authors present a moderated-mediation model.Originality/valueTo date, international relationship marketing (IRM) literature has focused on PC breach, and business-to-business (B2B) marketing literature has focused on the effects of PCs on affective/relational commitment. This study offers novel insights by demonstrating the positive indirect effect of PCF on EVP via the mediating variables – affective and calculative commitment. The authors' findings also present a conditioning role of ID on the micro-level relationships of PCs.

An Analysis of the Agrochemicals Industry in SPSR Nellore District of Andhra Pradesh

The study entitled “An Analysis of Agrochemicals Industry in SPSR Nellore District of Andhra Pradesh” was taken up with basic objectives to study the competitors and the reason for the success of the top companies in the market. The study was conducted in the SPSR Nellore district of Andhra Pradesh. The stipulated objectives of the study were achieved by using both primary and secondary data. The primary survey was done with the help of a semi-structured Schedule. The sampling consisted of 210 farmers and 70 dealers who are from the major towns in the district. The major crop is Paddy as major parts of the district receive the rainfall with both southwest and northeast monsoon. Farmers are showing interest in pesticides which are giving more results than the price and availability. The major market of the district is occupied by Bayer Crop Science Ltd, Adama Ltd, Dhanuka Agritech Limited, FMC, and Corteva Agrisciences. The Total market size was nearly INR 250 crores. The reason for the success of Bayer crop Science Ltd and Adama Ltd is a strong distributor relationship. The reason for the success of Dhanuka Agritech Limited is due to the presence of more sales staff and their monitoring of sales by visiting shops at regular intervals.

Understanding the spillover effects of manufacturer-initiated reward on observers’ compliance: a social learning perspective

PurposeAlthough manufacturer-initiated rewards are widely used to secure distributors’ compliance, the spillover effect on unrewarded distributors (i.e. observers) in the same distribution channel is under-researched. Using insights from social learning theory, this paper aims to investigate how manufacturer-initiated rewards affect observers’ expectation of reward and shape observers’ compliance toward the manufacturer. Furthermore, this paper explores how such effects are contingent upon distributor relationship features.Design/methodology/approachTo test the hypotheses, hierarchical multiple regression and bootstrapping analyses were performed using survey data from 280 Chinese distributors.FindingsThe magnitude of a manufacturer-initiated reward to a distributor stimulates expectation of reward among observers, which enhances compliance; observers’ expectation of reward mediates the impact of reward magnitude on compliance. Moreover, network centrality (of the rewarded peer) negatively moderates the positive impact of reward magnitude on observers’ expectation of reward, whereas observers’ dependence (on the manufacturer) positively moderates this dynamic.Practical implicationsManufacturers should pay attention to the spillover effects of rewards. Overall, they should use rewards of appropriate magnitude to show willingness to recognize outstanding distributors. This will inspire unrewarded distributors, which will then be more compliant. Furthermore, manufacturers should know that specific types of distributor relationship features may significantly vary the spillover effects.Originality/valueThis study illuminates the spillover effects of manufacturer-initiated reward by opening the “black box” of the link between reward magnitude and observers’ compliance and by specifying the effects’ boundary conditions.

Unveiling the infidelity problem in exclusive manufacturer–distributor relationships: A dyadic perspective

AbstractInfidelity has been a common dark‐side phenomenon in manufacturer–distributor (M–D) relationships, which, despite its harmful effects on operating performance and long‐term viability, has received scant theoretical and empirical attention in marketing research. Using data collected from 103 manufacturers and 101 distributors located in the USA, we investigate this phenomenon by conceptualizing it as a developmental process, comprising motives, symptoms, manifestations, consequences, and remedies. Our findings show that, with a few exceptions, there are no significant differences between manufacturers and distributors with regard to their perceptions of: (a) the structural, processual, and contextual factors contributing to the emergence of infidelity; (b) the behavioral and attitudinal factors helping to diagnose partner infidelity; (c) the ambiguous, explicit, and deceptive manifestations of infidelity; (d) the possible passive, mild, or aggressive consequences of infidelity; and (e) the pre‐emptive or post hoc measures that need to be taken to cure infidelity.

Pengaruh Kinerja Distribusi Selling-In Terhadap Kinerja Pemasaran PR. Gagak Hitam

The successful performance of a company selling-in one of them by building a good relationship between the company with its customers so as to be able to face global competition. This research attempts to answer the phenomenon of business on PR. Gagak Hitam Maesan Bondowoso which shows the tendency of marketing performance, especially the realization of sales below the sales target and relatively fluctuate. Developed a study formed from literature review in order to answer the business phenomenon. This research model is also based on previous research. A model has been developed and seven hypotheses have been formulated to address this research problem. The sampling technique used purposive sampling. Respondents from this study amounted to 114 respondents, where respondents were 114 samples of the owners or responsible person outlets who sell products from PR. Gagak Hitam Maesan Bondowoso. The data analysis tool used is Structural Equation Modeling (SEM) in AMOS 22 program. The results of this research data analysis show the model and research results can be received well. This study proves that distributor relationship with outlet has a direct and insignificant effect on selling-in performance. The ability of the sales force has a direct and significant impact on the selling-in performance. Corporate image has a direct and significant impact on sales-in performance. Outlet service strategy has a direct and insignificant effect on selling-in performance. Selling-in performance has a direct and insignificant influence on marketing performance. The distributor's relationship with the outlet has a direct and insignificant influence on marketing performance. Outlet service strategy has a direct and insignificant influence on marketing performance. Managerial implications and research agenda were also discussed in this study. Some limitations of research and future research agenda can be used as a reference for further researchers.

The effect of distributors' relationship exploration on relationship quality under market uncertainty

While relationship exploration, or seeking alternative exchange partners, is a ubiquitous marketing channel strategy when facing a volatile marketing environment, how this strategy affects a firm's incumbent relationship is unclear. Drawing upon resource dependency theory and the dynamic capabilities perspective, we argue that a distributor's relationship exploration does not destruct but rather improves the existing relationship by enhancing the focal distributor's dynamic capabilities (e.g., absorptive capability and innovative capability) that are essential in volatile environments. However, the ultimate influence of this strategy via dynamic capabilities is contingent upon the careful alignment of dynamic capabilities with market conditions. Using a sample of electronic component distributors in China, this study confirms the role of dynamic capabilities as underlying mechanisms in the influence of relationship exploration on relationship quality. Moreover, we find that market uncertainty varies the effects of dynamic capabilities differentially; it strengthens the effect of absorptive capability, while it weakens that of innovative capability.

Influence of Information Quality on Retailer Satisfaction through Supply Chain Flexibility and Supplier Relationship Management in the Retail Industry

Businesses always compete to improve customer satisfaction. A firm engaged in as a distributor as well, always try to provide satisfaction to their customer, in this case, retailer and wholesales. The distributor can improve retailer satisfaction by providing such information that suits retailer requirements in the pursuit that the supply chain flow can move quickly, particularly on the flow of products from the manufacturing ordered by the distributors. This study aims to obtain a relationship between distributors and retailer companies. This study surveyed 100 retailers, and wholesale companies engaged in Fast Moving Consumer Goods (FMCG) and the supplier domiciled in the city of Makassar, South Sulawesi, with revenues of more than IDR 300,000,000. - / year. SmartPLS software version 2.0 was used to test the hypothesis. The results of the study found that information quality can provide a positive increase in improving supplier relationship management. Adequate information quality cannot significantly increase supply chain flexibility and retailer satisfaction. Supplier relationship management built by distributors can have an impact of 0.611 on supply chain flexibility in retail and retail satisfaction companies of 0.367. The stronger distributor and retailer relationship can increase distributor flexibility and retail satisfaction. Supply chain flexibility built by distributor companies can have a significant impact on retailer satisfaction of 0.463. This research provides an improvement in the development of supply chain management theory, in particular, building relationships with customers.

Factors affecting the quality of manufacturer – distributor relationship in the plastic industry in Vietnam

This study explores and examines the factors that affect the composition of the quality relationship between manufacturers and distributors in the context of plastic industry in Vietnam. Qualitative research on single and group discussions with 23 manufacturers and distributors in the plastics industry. Quantitative research directly interviews 560 plastic product distributors in Ho Chi Minh City area and Southern provinces. The results of the study determine the composition of the relationship quality including three factors of trust, commitment and satisfaction; Six factors of product quality, delivery quality, market information, communication, personal interaction and visits affect the quality of the relationship between manufacturer and distributor.

Toward a social fitness perspective on contract design: Contract legitimacy and influence strategy

The effectiveness of contracts in terms of cooperative efficiency and relational outcomes in interorganizational relationships has become critical in today's volatile markets. However, extant research on the effect of contracts on trust has found inconsistent results, possibility because of its overwhelming focus on an economic fitness perspective at the expense of a social fitness perspective. Drawing insights from institutional theory, we focus on legitimacy building in interfirm contract design, investigate how contract legitimacies (i.e., regulative, normative, and cognitive) influence the effectiveness of interfirm contract design, and further explore the moderating effects of influence strategies that are applied in the process of contract implementation. Using longitudinal field survey data and archival data, this study finds that the three types of contract legitimacy play different roles in influencing compliance and trust and that noncoercive influence strategies can improve the effectiveness of regulative and normative legitimacy better than coercive influence strategies on trust. The findings offer new theoretical and managerial insights into the role of institutional environments in the effectiveness of contract design in manufacturer–distributor relationships.

The effects of distributor relationship commitment and relationship exploration on opportunism: The moderating roles of exchange uncertainties and network factors

Channel management entails both the evaluating of incumbent business partners and simultaneously seeking potential new partners. In supplier–distributor exchanges, distributors can explore alternative suppliers while still committing to incumbent suppliers. While the current literature has demonstrated the importance of relationship commitment, the consequences of relationship exploration and whether that exploration is harmful to any incumbent relationships remain unclear. Drawing from relational governance and social network theories, this study thus examines how distributor dual relationship strategies of commitment and exploration influence their opportunistic behavior. The findings from a survey of 328 distributor firms indicate that relationship commitment leads to reduced opportunism; yet relationship exploration exerts no significant main effect on opportunism. More interestingly, these effects are subject to two types of uncertainty and two characteristics of distributor network wherein the focal exchange relationship resides. Specifically, behavioral uncertainty—an internal source of uncertainty—aggravates the opportunism that arises from both strategies, whereas, environmental uncertainty—an external source of uncertainty—alleviates both these effects. The distributor's network density weakens the effect of relationship commitment on opportunism, but network centrality strengthens this effect. By contrasting relationship commitment with relationship exploration under multiple moderating conditions, this study advances the extant channel relationship management literature and practice.

Transaction-specific investments in a supplier-distributor-supplier triad in China: opportunism and cooperation

PurposeRather than focussing on dyadic distributor–supplier relationships, this study aims to examine whether the difference in transaction-specific investments (TSIs) between rival suppliers in a supplier–distributor–supplier triad influences whether distributors expropriate or maintain their supplier’s TSIs.Design/methodology/approachDrawing on triadic data from 276 questionnaires that address both the supplier–distributor relationship and the rival supplier–distributor relationship, a moderated regression analysis is used to test the hypotheses.FindingsFive out of six hypotheses are supported by the empirical test. The results show that the supplier’s TSIs increase the distributor’s opportunistic behaviour and reduce cooperation when the distributor perceives that the supplier’s TSIs are lower than those of a rival supplier. In contrast, when the distributor perceives that the supplier’s TSIs are higher than those of a competitor, the supplier’s TSIs do not improve cooperation and can shift the link between the supplier’s TSIs and the distributor’s opportunism from being positive to negative.Practical implicationsThe findings have implications for the top managers of supplier firms embedded in distribution networks. This study suggests that the competitor’s TSIs can be regarded as an indicator of the supplier’s relationship with the distributor. By keeping an eye on their competitors’ TSIs, the top managers of suppliers can predict the likelihood of distributors’ opportunistic and cooperative behaviour and make efforts to improve their position by adjusting their own firm’s TSIs. Furthermore, this information can help suppliers decide on their investment strategies and maintain stable and healthy relationships.Originality/valueThis study 1) examines the effect of TSIs using a triadic framework and triadic data and demonstrates that how a distributor responds to a supplier’s TSIs, with either opportunism or cooperation, depends on the relative level of those TSIs in focal and competitive relationships; and 2) reveals the expropriation effects and restraint effects of TSIs by drawing on prospect theory. This finding indicates the dynamics of TSIs in a triadic relationship.

The Quality of Manufacturer: Distributor Relationship- A Case of Plastic Industry in Vietnam

The Quality of Manufacturer: Distributor Relationship- A Case of Plastic Industry in Vietnam

Strategic issues in marketing of consumer and technology products dealer satisfaction survey-Implications for enhancing channel relationship

Marketing literature shows that the main sequences of strategic marketing planning and control processes are based upon the point of sales management which means strong bonding with the Sales channel network i.e. dealers. Considering the fact that the way in which a dealer is treated by its manufacturer has decisive influence on the dealer's commitment to the brand as well as on the dealer's business success, an examination of dealer satisfaction or dissatisfaction has become strikingly important during the last few years. But equally important is how dealer rates the manufacturer company. On the above lines, the objective of the study is to evaluate a manufacturer company on overall product standing, product demand, quality consciousness, price sensitivity, providing optimal combination of price and quality, timely delivery and performance in order execution by its dealers. This in turn would provide an overall perspective on the Company's abilities in terms of Channel Management. The dealers also evaluated the company's responsiveness and dealing of front line office employees towards dealers. A complete Dealer Level survey performed to ascertain product and company standing in the market and dealer relationship strength. The consumer product considered for the study is Jyoti Tempcore (TMT bars) of Madhav Group of Industries, Mandi Gobindgarh, Punjab, India. This is among the top 10 steel producers of the region and commands a high position in construction and structural steel. The sample consists of all of its dealers in Punjab. There are 169 respondents. A structured questionnaire has been formulated. With reference to the survey, a varied set of outcomes appeared in a variety of segments. But, primarily the outcome was quite progressive. With just a few areas showing scope of major reforms-like company's interaction with dealers, distributor relationship with dealers and brand visibility at dealerships. The other factors showed promising

Manufacturer–distributor relationships: role of relationship-specific investment and dependence types

PurposeThis paper aims to investigate the extent to which relation-specific investments undertaken by the distributor favor the presence of various governance structures (formal contract and relational governance). Furthermore, it examines whether dependence moderates the effect of relationship-specific investments on these governance structures.Design/methodology/approachSurvey data were gathered from 224 wholesalers from the food and beverage industry. Hypotheses were tested through regression analysis.FindingsThis study illustrates that property-based relationship-specific investments have a greater positive impact on the use of formal contracts than knowledge-based relationship-specific investments. Furthermore, knowledge-based relationship-specific investments have a greater positive impact on relational governance than property-based relationship-specific investments. The results also suggest that it is necessary to consider the moderating effect of cost-based dependence and benefit-based dependence. Finally, mixed governance structures (e.g. formal contracts combined with relational governance) have a positive impact on satisfaction and intention to maintain and extend the relationship.Practical implicationsThe findings allow manufacturers to concentrate their efforts on mixed governance structures facilitating relationship-specific investments and benefit-based dependence from distributors to develop a competitive advantage.Originality/valueSeveral investigations have obtained a relationship between investments in specific assets, governance structures and performance. Nevertheless, they have not identified different types of investments in specific assets. This study proposes that there are two types of relationship-specific investments: based on property and based on knowledge. Additionally, a two-dimensional model of dependence (cost-based and benefit-based) allows capturing the different theoretical spheres of this concept.

Distributor orientation and channel profitability for manufacturing-centered SMEs

Purpose This study aims to explore how the distributor orientation of manufacturing-centered small and medium-sized enterprises (MCSMEs) influences relationship building outcomes, distributor satisfaction, and channel profitability. Design/methodology/approach This study examines the moderating role of competitive intensity and coordinative culture in the association between distributor orientation and relationship building outcomes. Findings Empirical results from 115 MCSMEs reveal a strong positive relationship between distributor orientation and distributor satisfaction. The findings also show a positive relationship between distributor orientation and channel profitability. Furthermore, although competitive intensity strengthens the positive relationship between distributor orientation and the two relationship building outcomes, coordinative intensity weakens the positive relationship between distributor orientation and the two relationship outcomes. Practical implications Managerial implications and future research opportunities were discussed. Originality/value The research contributes to the literature on the management of small and medium-sized enterprises and offers practical implications for manufacturers and distribution channel managers.

Market orientation, distributor relationship, and return on assets

Purpose – The purpose of this paper is to explore how market orientation is related to relationship building outcomes in the downstream distribution process. The authors examine the role of distributor satisfaction in mediating the association between market orientation in distribution and return on assets. Design/methodology/approach – Market orientation in distribution was measured by distributor orientation, competitor orientation, and interfunctional coordination. Findings – Results showed that the positive relationship between market orientation in distribution and distributor satisfaction was strongly supported. While distributor orientation and competitor orientation were both positively related to distributor satisfaction and return on assets, interfunctional coordination was not related to either distributor satisfaction or return on assets. However, interfunctional coordination lessened the positive relationship between distributor orientation and distributor satisfaction. Originality/value – This study fills research void in downstream relationship building in the distribution process in a business-to-business context.

A two-stage data envelopment analysis model for measuring performance in three-level supply chains

Data Envelopment Analysis (DEA) has been widely used to evaluate supply chain performances. In conventional DEA, supply chains are represented as black boxes where only the initial inputs and final outputs are considered to measure their efficiency. However, an integrated model measuring both the efficiency of the entire supply chain and that of all its components at all levels is essential for a comprehensive evaluation. This study presents a two-stage DEA method to evaluate the performance of a three-level supply chain including suppliers, manufacturers and distributors. The proposed model can be used both under the constant returns to scale and the variable returns to scale assumptions and can be easily implemented for comprehensive analysis of multi-level supply chains. We present a numerical example to demonstrate applicability of the proposed model and exhibit the efficacy and effectiveness of the proposed algorithms and procedures. In particular, the numerical results demonstrate that the entire supply chain is “comprehensively” efficient only if efficient supplier–manufacturer and manufacturer–distributor relationships are established.

Externalities of National Pharmaceutical Policy when Markets are Integrated through Parallel Trade

This paper studies externalities of nationally determined cost-sharing systems, in particular coinsurance rates (patients pay a percentage of the price), under pharmaceutical parallel trade in a two-country model with a vertical distributor relationship. Parallel trade generates a price-decreasing competition effect in the destination country and a price-increasing double marginalization effect in the source country. An increase of the coinsurance rates in the destination country of the parallel import mitigates the double marginalization effect in the source country. An increase of the coinsurance rate in the source country reinforces the competition effect in the destination country. This may be a case for policy coordination in the European Union.