Foreign Distributors Research Articles

Coordination with Foreign Distributors and Export Performance: Moderating Effects of International Experience and Firm Size

Coordination with Foreign Distributors and Export Performance: Moderating Effects of International Experience and Firm Size

A tripartite stochastic evolutionary game model of complex technological products in a transnational supply chain

The effective operation of a transnational supply chain under economic globalization is a key way to promote scientific and technological progress and a realistic requirement for the development of social productivity. However, the long-term dynamic interaction between the transnational operation decision-making behavior and the random interferences owing to multiple uncertain factors is difficult to explain using traditional game theory. Therefore, we establish a tripartite stochastic evolutionary game model among multinational corporations, foreign distributors, and the government. We consider It̂o’s stochastic differential equation to analyze stability conditions through stability analysis, numerical simulation, and in-depth case simulation. The results show that the game’s evolutionarily stable strategy comprises eight pure strategies, and obtains the critical value of the key parameters which can effectively guide the evolution of the multinational supply chain to a reasonable long-term optimal path. We innovatively use the tripartite evolutionary path iterative algorithm to propose a dynamic strategy selection scheme and find that the consumer preference for complex technology products significantly affects the tripartite strategy.

Challenges faced by mango exporters

The mango is one of the most ancient and important Asian fruit. India is the world’s largest mango producer, accounting for 45 per cent of global mango production. Despite being the world’s largest producer of mangoes, India only exports a very small amount of its produce owing to several constraints. The study revealed major challenges faced by mango exporters in Gujarat state. Major challenges were found to be high international freight charges, difficulties in custom clearance, sanitary and phytosanitary (SPS) measures, unavailability of quality mangoes in sufficient quantity, difficulties in certification, high local transportation charges, lack of standardization on post harvest handling, poor infrastructure facilities like cold storage, pack house, etc., competition from other exporting countries, lack of institutional support with respect to credit, problem finding reliable foreign distributor, Unavailability of market information, Price fluctuation of the commodity supply at home country, Problems in quoting price with fluctuating exchange rates, Labelling and packaging requirement, Confusing foreign import regulations and Unavailability or untimely export incentive.

Parallel imports under a manufacturer rebate and a price freeze: Evidence from Germany.

I study the effect of a change in the mandatory manufacturer rebate and a price freeze on wholesale prices for pharmaceuticals on competition by parallel imports. First, I analyze the effect of a manufacturer rebate on competition by parallel imports in a two-country model. Second, I exploit a policy reform in Germany in 2010 that increased the manufacturer rebate by 10 percentage points. Using a data set with prescription drugs with competition from parallel imports, I estimate the effect of the change in the manufacturer rebate on competition by parallel imports. The model predicts that an increase in the manufacturer rebate increases the market share of parallel imports. The rebate decreases the manufacturer's revenues from domestic distribution. In response, the manufacturer lowers the wholesale price for a foreign distributor, resulting in a competitive advantage for and an increase in the market share of parallel imports. The estimation shows that the increase in the manufacturer rebate by 10 percentage points has increased the market share of parallel imports by approximately 18%-35% and has increased the number of importers by up to 17%.

A data-driven robust optimization model by cutting hyperplanes on vaccine access uncertainty in COVID-19 vaccine supply chain

The worldwide COVID-19 pandemic sparked such a wave of concern that made access to vaccines more necessary than before. As the vaccine inaccessibility in developing countries has made pandemic eradication more difficult, this study has presented a mathematical model of a sustainable SC for the COVID-19 vaccine that covers the economic, environmental and social aspects and provides vaccine both domestically and internationally. It has also proposed a robust data-driven model based on a polyhedral uncertainty set to address the unjust worldwide vaccine distribution as an uncertain parameter. It is acceptably robust and is also less conservative than its classical counterparts. For validation, the model has been implemented in a real case in Iran, and the results have shown that it is 21% less conservative than its classical rivals (Box and Polyhedral convex uncertainty sets) in facing the uncertain parameter. As a result, the model proposes the construction of two domestic vaccine production centers, including Pasteur Institute and Razi Institute, and five foreign distributors in Tehran, Isfahan, Ahvaz, Kermanshah, and Bandar Abbas strategically.

Enhancing competitive advantage and financial performance of consumer-goods SMEs in export markets: how do social capital and marketing innovation matter?

PurposeBuilding on the resource-based view (RBV), this study examines the differential roles of internal and external social capital (SC) in enhancing the marketing innovation (MI), competitive advantage and financial performance of Korean small and medium-sized enterprises (SME) in export markets.Design/methodology/approachIn total, 197 valid cases were obtained from Korean manufacturing SMEs in the consumer goods sector. Then, a path analysis was employed to test the proposed hypotheses.FindingsFirst, SME internal SC positively influenced MI, whereas external SC positively influenced foreign distributor's MI (or foreign distributor MI). Second, SME MI was positively associated with foreign distributor MI. Third, no statistical differences were found in the strength of the paths from foreign distributor and SME MI to competitive advantage. Meanwhile, foreign distributor MI positively affected financial performance more than SME MI. Fourth, SME competitive advantage predicted a positive financial performance. Finally, the effect of SME MI on financial performance had an inverted “U” shape.Originality/valueThis study fills a research gap in the MI literature by identifying MI in terms of its actors (SMEs and their foreign distributors) and examining the differential roles of internal and external SC in MI.

Multi-Sided Digital Platforms’ Application in SMEs’ Fashion Brands Internet-Enabled International Marketing

Purpose: While the multi-sided digital platforms (MSPs) enjoy increasing interest regarding their business models and internationalisation, little research has been done on the application of MSPs in firms` foreign expansion. Specifically, it is unclear how MSPs can support small and medium enterprises` (SMEs) international marketing. The aim of this paper is to identify models of MSPs application in the Internet-enabled international marketing of SMEs’ fashion brands. Design/Methodology/Approach: As the research method a multiple-case study was used. Data were obtained from both in-depth interviews with managers of four Polish SMEs – owners of fashion brands, whose products are sold in the foreign markets via MSPs, and secondary sources. Findings: Studied companies offer their products via international MSPs originating from foreign markets and home country. It may be initiated both by platform`s operators, brand owner and a foreign distributor. Responsible for the relations with MSPs and in control over international marketing via MSPs may be both brand owner and a foreign distributor. Practical Implications: Presented models of MSPs application in international marketing can be used as a basis for shaping marketing strategies in this area. Originality/Value: This paper contributes to the better understanding of SMEs` Internet-enabled international marketing using MSPs.

The two sides of cooperation in export relationships: When more is not better

Studies have questioned the beneficial effects of exporter–importer cooperation by showing, without explaining, that it may not have a positive effect on performance. We contend that cooperation carries the genes of its own demise. We develop a model drawing insights from exchange theory and the dark-side perspective of social relationships, which we then test using two consecutive data collection efforts with exporters. Results suggest the influence of cooperation on exporter market performance has an inverted U shape; at high levels, the effect of cooperation on performance fades and becomes negative. Further, this effect is indirect. Cooperation must first influence the importer’s behavior, via its specific investments, to improve the exporter’s market performance. Moreover, we find that lower levels of interdependence increase the effect of low to moderate levels of cooperation on importer’s specific investments, and that the effect of cooperation on investments is impervious to psychic distance. Our results caution that more cooperation with foreign distributors is not always better and can hurt export performance. Indeed, export managers should not expect a simple, systematically positive, and direct relationship between cooperation and exporter market performance.

How to reduce opportunism through contractual governance in the cross-cultural supply chain context: Evidence from Chinese exporters

Opportunistic behavior has been the main threat in cross-cultural supply chains. Drawing on institutional theory, we investigated how Chinese export firms facing cultural differences reduce foreign distributors' opportunism through differentiated contract governance strategies. Based on both a survey dataset of 206 Chinese export firms and a secondary dataset, our results suggest that cultural distance increases opportunism by inhibiting contract application but also decreases opportunism by enhancing detailed contract design. In addition, we found that both indirect effects of cultural distance on opportunism via contract governance strategies depend on the surrounding institutional environment in cross-cultural supply chains. Regulatory uncertainty strengthens the positive impact of cultural distance on detailed contract design and strengthens the negative impact of cultural distance on contract application. Moreover, regulatory uncertainty also strengthens the negative impact of detailed contract design on opportunism and weakens the negative impact of contract application on opportunism.

Selling Hollywood to China

From the 1980s to the present, Hollywood’s major distributors have been able to redistribute U.S. theatrical attendance to the advantage of their biggest blockbusters and franchises. At the global scale and during the same period, Hollywood has been leveraging U.S. foreign power to break ground in countries that have historically protected and supported their domestic film culture. For example, Hollywood’s major distributors have increased their power in such countries as Mexico, Canada, Australia and South Korea. This paper will analyze a pertinent ‘test case’ for Hollywood’s global power: China and its film market. Not only does China have a film-quota policy that restricts the number of theatrical releases that have a foreign distributor (20 to 34 films per year), the Communist Party has helped the Chinese film business grow to have steady film releases and its own movie star system. Theoretically, China would be a prime example of a film market that would need to be opened with the assistance of the U.S. government. Empirically, however, the case of Chinese cinema might be a curious exception; we can investigate how a political economic strategy rooted in explicit power is reaching a limit. Hollywood is, potentially without any other option, taking a more friendly, collaborative approach with China’s censorship rules and its quota and film-production laws.

Architectural marketing capabilities of exporting ventures

PurposeThe importance of architectural marketing capabilities (i.e. marketing planning and implementation) in exporting ventures has been recognised. However, extant literature has not taken into account the explicit roles and required synergy between the exporter and their foreign distributor in delivering these capabilities. Drawing from the resource-based theory, the purpose of this paper is to examine the complementarity of distributor implementation capability and market orientation with exporter planning capability.Design/methodology/approachThe study was carried out using a survey. Data were collected from 147 Greek exporters who replied to our questionnaire and the hypotheses were tested using the full information maximum likelihood estimation procedure.FindingsThe results support the hypotheses about the importance of exporter planning capability on financial performance and the complementary role of distributor market orientation. Further, the authors find that the distributor’s implementation capability partially mediates the impact of the exporter’s planning capability on financial performance.Originality/valueThis study contributes to a better understanding about the complementarity of exporter and distributor capabilities. It demonstrates the crucial role of the distributor in the deployment of architectural capabilities for the export venture: the distributor’s market orientation and implementation capability have the final say in achieving higher levels of export performance.

Investigation of the social and communicative mechanism of image creation of the IKEA in Ukraine

This article deals with the image of the modern company IKEA. They want to enter the Ukrainian market place, but it will be impossible for the next 10 years because of political and ideological considerations. This type of furniture manufacturers will take a prominent place on the internal market very soon. Many Ukrainians are aware about IKEA, they are buying products online from foreign distributors but do not have the ability to buy in branded stores, because they do not exist on the territory of Ukraine. The urgency of this topic is beyond doubt. The image of campaign is bases on strategically important image items and communication resources. Those are not within the material industry. It is well known, that the IKEA organization has proper and powerful communication policy, timely and promptly informing the target audience about the events, as well as forming a powerful social image. All these factors contribute to the formulation of a positive buyer's attitude towards to the products of the campaign. An absolutely fundamental principle is the formation of reputation demonstrates the positive aspects and drawbacks of IKEA products. Although IKEA have not entered the territory of Ukraine yet, Ukrainians know about goods and have point of view about them. So when IKEA will find the opportunity to come to the local market they target audience would be immediately grow. This article pays attention to the way of understanding what ukrainian buyers need. Such as ethical principles, innovative methods, mechanisms of image design which affects the perception of the goods by customers and the brand in general. Consequently, our aim was studying the PR technologies which were used for designing the IKEA’s image for the local Ukrainian market and for domestic consumer. During this research, we paid attention to the scientific positions of such scientists as Anggraeni A, Bettger F., Zavadsky Y, Carter G., Mindrut S., Zhigalov VT, Pankratov F., Parkinson S. N., Rafel R., Roman E., Rossi P., Chegini F., Sukharev V., Shymanovska L. M., Seimiene E. and many others. For our research, we used such methods as the analyst of scientific thought and positions, comparative analysis, internet interview, the forecast of creation of the IKEA’s image positions at the local market. The main aim of this work is to predict the attitude of Ukrainians to the typically new furniture company, which try to enter the local market. How audience will accept them. In which way the target audience sees the IKEA’s goods and the level of readiness to buy a product. As we see local audience has a good visions about IKEA and about 30 % of people ready to spend their money to buy furniture (and other different goods) of this company. Mostly Ukrainians has positive point of view about IKEA. During the research, we were try to find out IKEA’s activities and analyzed the PR-technologies that were used for creating the target audience opinion. So as a result, we notice that Ukrainians has some knowledge about IKEA, its image and has some attitude to their goods. The biggest part of Ukrainian audience don’t have any opportunity to buy what company sells, but have heard about it or saw advertisement through the internet.

Киноиндустрия сегодня: импульсы и барьеры развития

<span>Исследование посвящено выявлению импульсов развития отечественной киноиндустрии в контексте преодоления барьеров, обозначившихся в результате глобализации кинобизнеса и трансформации структуры отрасли в рыночных условиях. Особое внимание уделяется исследованию специфики денежных потоков кинопроекта, на базе которого обоснован подход к комплексной оценке его финансового результата. Проведен анализ ситуации в отрасли с использованием показателей динамики кассовых сборов и рыночной концентрации, а также метода балльной оценки. Изучены последствия от возможной сделки крупнейших кинокомпаний «Уолт Дисней» и «20-й век Фокс» для российского кинематографа. С целью поддержания отечественного кинопроизводства были предложены следующие меры: квотирование зарубежного дистрибьюторского участия на рынке, максимизация инвестиционной привлекательности на основе открытости информации о проекте с использованием предложенной методики, введение предельного значения кинотеатральной ренты для иностранных прокатчиков.</span>

Reconciling contracts and relational governance through strategic contracting

PurposeIn an industrial marketing context of manufacturer–distributor collaboration, this law and economics paper aims to contrast two approaches to contracting: conventional and strategic.Design/methodology/approachBased on relational rent theory, this paper provides an analytical framework for juxtaposing conventional and strategic contracting. A contingency approach is applied to formulate propositions as to when conventional versus strategic contracting is preferable.FindingsThe distinction between conventional and strategic contracting has implications as to whether relational governance substitutes or complements formal contracts (the substitution versus complements perspectives). Strategic contracting results in complementarity (rather than substitutability) between formal contracts and relational governance.Research limitations/implicationsThis paper argues that a more nuanced view on contract types, such as strategic versus conventional, may reconcile the enduring research controversy between the substitution and complements perspectives.Practical implicationsToday, formal contracts with foreign distributors tend to resemble “prenuptial agreements”. The opportunity for relational rent (e.g. manifested in higher export revenues) grows if conventional contracts are superseded by contracts following strategic contracting principles.Originality/valueThis study is interdisciplinary, not only by its combination of marketing, management and contractual economics but also through its law and economics amalgamation.

“The Mediating Role of Marketing Strategy in the Effect of Antecedents on Export Performance : in the case of of Oil Seeds, Pulses and Coffee Exporting Companies in Ethiopia.”

This study examined the impact of specific firm, product, industry, and export market characteristics, as well as export marketing strategy (product adaptation, price competitiveness, promotion adaptation and support to foreign distributor) on the export performance On Export Performance of Selected Export Companies in Ethiopia. Data were gathered from 100 marketing strategists via a structured surveyfrom firms engaged in exporting four product categories (coffee, livestock products (leather, live animals and meat), oil seeds and pulses) which has been operating since 1986. The results indicatedthat the four explanatoryvariables have a direct positive and significant effect on overall export performance. Export strategy (product adaptation, price competitiveness and promotion adaptation) also played a significant mediating role on export performance. However, support for distributers strategy has played a positiveand an insignificant role in explaining the export performance. Overall the study finding implied that marketing-mix strategyhas a mediating effect on the relationship. The findings can be generalized only for those sectors studied and provide export managers withuseful insights.

Differential Effects of Bilateral Norms on SMEs’ Export Relationships: A Dynamic Perspective

Prior research has established the pivotal role of bilateral norms in relationship marketing, identifying them as effective relational governance mechanisms that firms can use to manage their international alliances with overseas intermediaries. Unfortunately, few studies have examined differential effects of specific norms on positive and negative behaviors, let alone norms’ effectiveness in the harsh export context of resource-constrained small and medium-sized enterprises (SMEs). To address these gaps, the authors explicate the effects of three norms (continuity expectations, equity, and cooperation) on both dysfunctional and productive behaviors of foreign distributors. Using two consecutive data collections, the results indicate that norms curb importer opportunism and help improve importer role performance and that continuity expectations and cooperation increase the chances of the survival of export ventures. The study further scrutinizes relational norms’ effects on opportunism in the context of exporting SMEs’ realities and tests relevant moderating effects. The findings indicate that while exporter dependence reduces the shielding effect of norms against opportunism, psychic distance and competitive intensity strengthen the protecting effect of relational norms. The results of this study underscore the heterogeneous nature of relational norms and suggest that norms such as continuity expectations play a leading role in structuring the ideology of a business dyad.

Power source drivers and performance outcomes of functional and dysfunctional conflict in exporter–importer relationships

Although conflict is natural in buyer–seller relations, the issue has largely been studied in domestic market settings despite increasing globalization and the surge of cross-border inter-firm relationships. This research focuses on two different types of conflict, functional and dysfunctional, and examines how these are linked to coercive and non-coercive power bases and performance outcomes in exporter–importer relationships. Using survey data from 105 pairs of exporters and their foreign distributors, we find that only in the exporter group the use of coercive power by the foreign distributor lowers functional conflict. However, the use of coercive power by the overseas partner increases dysfunctional conflict and the use of non-coercive power reduces such conflict across both exporters and importers, although in the importer group this link is not significant. The results also suggest that functional conflict enhances performance only among importers. The use of problem solving conflict resolution boosts functional conflict's impact on performance among exporters, but adversely affects the performance effect of such conflict in the importer group. Nonetheless, problem solving resolution negatively affects the impact of dysfunctional conflict on performance in both the exporter and importer groups. Moreover, we find that power distance boosts the impact of dysfunctional conflict on performance in the relationship across the groups of exporters and importers. Implications of the findings for international marketing theory and practice are discussed, and limitations of the study considered along with future research directions.

Relational governance mechanisms in export activities: Their determinants and consequences

Taking the relational paradigm, the channel theory and the contingency approach as an orientation, this study's aim is to analyze the determinants and the consequences of the relational governance mechanisms between exporters and their foreign distributors. Specifically, this work explicitly validates the interrelationships between the exporter's dependence on its foreign distributor, the exporter's international capabilities, the foreign market environment, relational norms and export performance. The results show that relational norms have a positive impact on an exporter's result and that the greater an exporter's dependence on its distributors, on its international competences and on the volatility of the foreign markets, the more the exporter needs to maintain a relation with its foreign distributors based on information exchange, flexibility and cooperation.The data scrutiny uses structural equation modeling (SEM) through PLS as the statistical instrument. The sample comprises 212 Spanish exporting firms.

Food Manufacturing Cooperatives' Overseas Business Portfolios

Firms selling products overseas may do so in a wide variety of ways, such as through trading companies, foreign distributors, brokers, direct sales, license arrangements, and foreign direct investment. Many firms employ a portfolio of arrangements for each of their products. Using a share equation model, we examine the factors influencing food processing cooperatives' foreign business arrangements. Particularly important are the cooperative's financial resources and structure, risk exposure and risk preferences, information resources, and product types. Compared to investorowned firms, we find that cooperatives have distinct disadvantages in investing or selling directly abroad, although the disadvantages are tempered by some equalizing considerations.

When public service drama travels: The internationalization of Danish television drama and the associated production funding models

Abstract This article provides a detailed analysis of how the Danish public service broadcaster DR employs external funding for its drama productions. This investigation is carried out in order to discuss the schisms involved when a public service broadcaster – whose traditional obligations arguably pertain to the national sphere – becomes a player in the international market for television content and, as a consequence, becomes partly reliant on international funding. Our article examines five different forms of external funding (i.e. funding from sources other than DR’s licence fee income): (1) co-funding with external partners (most often foreign broadcasters and/or foreign distributors); (2) canned programming sales; (3) pre-sales of canned programming; (4) format/remake sales and (5) international funds, both regional and international as well as pannational funds. All five forms of funding are critically assessed on the basis of existing theory and interviews conducted with significant industry professionals at DR’s Drama Division, DR Sales, German public broadcaster ZDF’s commercial sales arm ZDF Enterprises, and independent Danish production companies Nimbus Film and Miso Film. Specific cases (such as Forbrydelsen/The Killing [2007–2012], Bron/Broen/The Bridge [2011–], Arvingerne/The Legacy [2014–], 1864 [2014] and The Team [2015–]) are employed to illustrate the different funding models and tendencies identified within Danish television drama production. Apart from presenting the proliferation of different cross-national funding models that have been used within the last fifteen years, our empirical data also show significant new patterns in production culture and international market orientation within DR. Interestingly, however, our study demonstrates the distinctive contribution that DR’s public service remit has made to the quality of its drama programming, on one hand, and to the reach of its funding models, on the other – and, hence, to DR’s overall international success.