Distributor Relationships Research Articles

Manufacturer governance of foreign distributor relationships: do relational norms enhance competitiveness in the export market?

Research on international marketing channels accentuates the importance of relational norms and trust-building activities between buyers and sellers. Indeed, cultural and country differences may limit the use and effectiveness of traditional tools (such as market incentives and authoritative control) that govern the relationship between an exporting manufacturer and its foreign distributor. Consequently, exporting manufacturers need to emphasize relationships with their foreign distributors. This research finds evidence that supports both direct and indirect effects between the manufacturer's use of governance via relational norms and its competitiveness in the export market. The indirect effect results from the mediating role of trust, a finding that makes a key contribution to the understanding of the role of relational governance in cross-border relationships.

Are You in the Mood…for Food?

Successful food products marketing is no longer just about the 4Ps (optimizing the marketing mix), improving service and product quality, and/or managing supplier, distributor and consumer relationships. In a new era of experimental marketing, it is also about adding value for the customer and enhancing consumer experiences. This paper explores recent developments in marketing and suggests that we may just be returning to an era when food consumption was fun and not just a means of providing essential sustenance.

E-Commerce and Application Service Providers in the Promotional Products Industry

Whether we want to face it or not, the Internet will play a major role in the future of our industry. The nature of the supplier, distributor, and customer relationship is changing rapidly due to the emergence of the New Economy spurred by rapid technological development. Connections and information are no longer scarce resources. Service becomes the key as a new type of middleman evolves-infomediaries whose ability to provide useful and timely information will become a core competency for the 21st century in the same way manufacturing was in the 20th. This “Network Effect” is in turn causing the rapid emergence of a completely new type of Internet business-the application service provider. The ASP model not only provides the promotional products industry with the software to allow customers to buy from a particular web location, it also supplies a stream of information both into and out of each affiliate's site.

Exporter trust, commitment and marketing control in integrated and independent export channels

This article explores differences between three entry modes—sales subsidiaries, agents and distributors—along four dimensions—trust, commitment, marketing control and performance. It is posited that trust, commitment, marketing control and performance are highest in integrated modes (like sales subsidiaries) and lowest in distributor relationships, the agency solution being situated somewhere in between. These hypotheses are tested in a sample of 260 exporter intermediary relations of 120 Norwegian exporters. Concerning marketing control the hypotheses are confirmed. On the other hand—there is virtually no difference between agents and distributors on two other dimensions: trust and commitment. Here the dividing line goes between integrated and independent channels. Concerning financial performance, there is no significant difference between the three modes of entry. However, integrated modes of entry seem to meet exporter expectations better than independent solutions regarding the more general performance measure, ‘goal achievement’. Implications for research and management are discussed.

Industrial distributors: Can they survive in the new economy?

As e-commerce evolves and gains power in the business-to-business (B2B) marketplace, what lies ahead for the industrial distributor? The fundamental issue from the distributor's point of view is how to compete more effectively and profitably, given the changing business environment of the new economy. This paper reviews the literature on the distributor's role and relationships and introduces a conceptual model of distributor viability. The model identifies sources of value that distributors offer to manufacturers and customers, including customer relationship management (CRM), production and operations management (POM), and knowledge management (KM). The paper explores the managerial implications of distributor relationships and sources of value. This provides the foundation for better understanding of the viability of industrial distributors in the new economy.

A conceptual framework of relational governance in foreign distributor relationships

A conceptual framework of relational governance in foreign distributor relationships

Sources of Power in International Marketing Channels

In response to certain important gaps in existing knowledge of distribution channels in international markets, this paper reports an empirical study on the sources of power in cross-cultural buyer-seller relationships. Specifically, the focus of attention is an examination of the nature of and interrelations among the sources of power held by overseas distributors in their relationships with export manufacturers. The findings suggest that an overseas distributor's use of reward is positively related to its informational, referent, legitimate and expert power sources, as is perceived by export manufacturers. It has also been found that there is a negative relationship between an importer's use of coercion and its informational base of power over the exporter. Moreover, specific reward and punishment elements are identified that play an important role in influencing the pattern of interactions in manufacturer-overseas distributor relationships. The implications of these findings for business practitioners and public policy makers are discussed and directions for future research on the topic considered.

Import Motivation in Manufacturer–Overseas Distributor Relationships: Guidelines for U.S. Industrial Exporters

U.S. exporters face ever increasing competition as they try to penetrate foreign markets. Understanding the forces driving the import decision-making process of overseas customers is vital in exporters' efforts to compete successfully. However, little empirical research has been conducted in the field of international marketing to examine the issue of import motivation. This article reports on a systematic study of import motives of U.K. distributor firms trading with U.S. exporting manufacturers of industrial products. In this context, the relationship between such motivating elements and degree of import involvement is investigated. The results reveal the presence of significant differences in the patterns of motivation between different groups of firms in terms of the level of import involvement. The implications of the study for U.S. industrial exporters are discussed, and future research directions identified.

Degrees-of-Freedom Analysis of Case Data in Business Marketing Research

A valuable, although little-used, case data analysis technique, Degrees of Freedom Analysis, is the subject of this article. Given the richness of case data and its prevalence in business marketing research, Degrees of Freedom Analysis has the potential to become an important addition to one’s “research workbench.” The technique, first proposed by Donald Campbell (Campbell, Donald, T.: “Degrees of Freedom” and the Case Study. Comparative Political Studies, 8, 178–193 [1975]), is described. Three business marketing applications are presented; the first two involve use of the technique to compare the extent to which four theories of group decision making are manifested in organizations. The third application illustrates how the technique can be used for theory development in the context of manufacturer–distributor relationships. Our contribution is in demonstrating how researchers can link “traditional” (i.e., logical positivistic) hypothesis testing procedures to examine theoretical propositions in case study research. This approach is one way of achieving a critical test (Carlsmith, J. Merrill, Ellsworth, Phoebe C., and Aronson, Elliot: Methods of Research in Social Psychology. Addison Wesley Publishing Company, Reading, MA, 1976]), that is, testing the relative empirical strengths of competing theories. Our applications highlight the value of generalizing case data to theory versus the inappropriate attempt to generalize such data to a population (Yin, Robert K.: Case Study Research Design and Methods, second edition. Sage Publications, Thousand Oaks, CA, 1994). The explication and demonstration of this technique is not available elsewhere to the degree provided here.

Mechanisms to control the marketing activities of foreign distributors

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.

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

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.

Patterns of Credible Commitments: Territory and Brand Selectivity in Industrial Distribution Channels

The authors propose a new theoretical rationale that explains the paired existence of both a manufacturer's decision to limit the number of intermediaries operating in a specific geographic market and a distributor's decision to limit brand assortment in a product category. Using transaction cost reasoning, they suggest that channel selectivity agreements can be understood as interrelated exchanges of pledges, or credible commitments, that counterbalance exposure to opportunism and neutralize sources of relationship instability, thereby strengthening an interorganizational relationship. The empirical results, which are based on dyadic data from 362 manufacturer–distributor relationships, are broadly supportive of their framework.

The issue of import motivation in manufacturer—overseas distributor relationships: Implications for exporters

Understanding the factors influencing the import decision making process plays an important role in export growth and development. However, little empirical work has been done in the pertinent marketing literature to examine the issue of import motivation. This paper reports on a systematic study of import stimulus variables in the UK exporting manufacturer‐Bahraini distributor relationship. It identifies a “multi‐attribute perceptual gap” in import motivation between exporting and importing companies, on the basis of which exporters appear to underestimate the significance of several variables in influencing the import decision of Bahraini distributors. The research findings have important implications for business practitioners in exporting firms and future research directions.

Manufacturer – Distributor Relationships: A Sellers′ versus Buyers′ Market Perspective

The differences that exist in manufacturer – distributor relationships across diverse markets and countries have been largely ignored in the marketing channels literature. A conceptual framework is built designed to explain how the initiation, implementation, and review of manufacturer – distributor relationships are likely to vary, based on whether such relationships take place in buyers′ markets in developed countries or in sellers′ markets in developing countries. Several cultural and structural dimensions of markets in developing countries also play an important role in the conceptual framework. A comparative channel systems approach is taken and a number of propositions are developed that require empirical testing in the future.

Manufacturer-Overseas Distributor Relations and export Performance

The export arrangement which makes use of overseas distributors is examined in this article. Although this method is important for many manufacturers operating in foreign markets there are reservations about the performance levels that are achieved under such arrangements. It is suggested that there is an important link between the performance level achieved and the very nature of the relationship that exists between the manufacturer and overseas distributor. The authors assert also that the nature of the manufacturer-overseas distributor relationship is associated with certain characteristics of the participating companies; namely, their stake in the relationship, their experience, and their uncertainty surrounding the relationship. These propositions are tested and largely corroborated through analysis of data collected from 41 companies in Canada and the UK.