Marketing Channel Relationships Research Articles

Fairness asymmetry, changes in mutual trust, and supplier performance in buyer-supplier exchanges in China: A dyadic view

Despite the crucial role of fairness in establishing and maintaining interfirm trust, the literature on how asymmetric perceptions of fairness affect mutual trust over time is limited. Adopting a dyadic view, this study investigates the impacts of fairness asymmetry on changes in mutual trust in marketing channel relationships. We further suggest that fairness asymmetry inhibits supplier performance through the mediating role of changes in mutual trust. With a two-wave sample of 239 buyer–supplier dyads, our study demonstrates that fairness asymmetry leads to a decrease in mutual trust over time, which in turn reduces supplier performance. Moreover, joint asset specificity weakens, whereas market uncertainty and behavioral uncertainty aggravate the negative effect of fairness asymmetry on buyer–supplier mutual trust. Our work offers fresh insights into the implications of fairness in ongoing buyer–supplier relationships and guidelines for practitioners to better manage their channel partnerships.

Curbing opportunism in marketing channels: The roles of influence strategy and perceived fairness

Opportunism is vital in marketing channel relationships and existing research has identified several influential factors as antecedents of opportunism. Nonetheless, we have little specific knowledge of how manufacturer’s influence strategies or how reseller’s fairness perception affects reseller’s opportunistic behavior. This study examines the independent and interactive effects of influence strategies and fairness perception on the resellers’ opportunism tendency. Empirical evidence shows that the manufacturer’s use of coercive influence strategy increases the resellers’ opportunism tendency whereas manufacturer’s use of noncoercive influence strategy reduces it. The results also suggest that distributive and procedural fairness perceptions moderate the relationship between influence strategies and opportunism tendency. In particular, procedural fairness perception strengthens the effect of noncoercive influence on opportunism tendency. Contrary to our hypothesis, distributive fairness worsens the harmful effect of coercive influence on the reseller’s opportunism tendency. The latter counterintuitive finding provides directions for future research along with insights for channel management.

Performance implications of marketing agreement, cooperation, and control in franchising

ABSTRACT The affinity between franchisees and their franchisor represents a captive marketing channel relationship, requiring a mutually well-managed partnership for long-term success and sustained performance. The authors argue that franchisee social satisfaction and financial performance can be enhanced through greater strategic marketing agreement and operational marketing cooperation with their franchisor. Primary data were collected through a survey study of U.S. franchisees. Results from structural equation modeling indicate that both strategic agreement and operational cooperation positively affect franchisee satisfaction. Furthermore, satisfaction directly enhances as well as mediates benefits to performance. Franchisor marketing decision control is identified and tested as a boundary condition.

The dilemma of relational embeddedness: mediating roles of influence strategies in managing marketing channel opportunism

PurposeThe purpose of this study is to develop a better understanding of how relational embeddedness offers marketing channel partners both benefits and hazards. The nonlinear effect of relational embeddedness on channel opportunism is investigated. Influence strategies (i.e. coercive and noncoercive influence) are also examined as mediators of this nonlinear effect.Design/methodology/approachSurvey data are gathered from a sample of 149 manufacturers in China. The hypotheses are tested through regression analysis.FindingsThe results support the hypothesis that relational embeddedness has a U-shaped effect on opportunism, and that this relationship can be mediated through noncoercive influence strategies. The results also indicate that coercive influence has an inverted U-shaped effect and noncoercive influence has a U-shaped effect on opportunism.Research limitations/implicationsThis research serves as a launching point for further investigations into the “black box” of the double-edged effects of relational embeddedness. Other channel behavior constructs can be explored in future studies.Practical implicationsFirms should be aware of the benefits and pitfalls associated with relational embeddedness in marketing channels. They should be alert to using influence strategies when managing channel opportunism.Originality/valueThis study addresses the dilemma of embeddedness in marketing channel relationships and reveals its causes and mechanisms by exploring the mediating effects of influence strategies.

Acquaintances or friends? Exploring the effects of contracts, trust and ethical level on opportunism in manufacturer-distributor relationships

PurposeThis study aims to examine how contractual mechanisms, trust and ethical levels impact opportunism in marketing channel relationships between manufacturers and distributors. Because the type of interactions, short-term or transaction-based vs long-term or relation-based, may also affect the level of opportunism, the study includes two scenarios to assess the impact of interaction type.Design/methodology/approachSurvey data from 145 distributors were collected with 69 being transaction-based and 75 being relation-based interactions.FindingsThe sole use for transaction-based and relation-based interactions is not a significant deterrent for opportunistic behavior by a distributor. Ethical level is negatively related to opportunism in transaction-based interactions, perhaps because of calculative commitment. Trust positively moderates the relationship between contractual enforcement and opportunism in transaction-based interactions. Under relation-based interactions, the opposite occurs as trust reduces contractual enforcement efforts, and thus, opportunism is reduced as well. Ethical level negatively moderates the relationship between contractual enforcement and opportunism in transactional and relational based interactions.Originality/valueResearchers have called for a more holistic approach to better understand phenomena. This study addressed that call by being the first to include contracts, trust, ethical level and opportunism within the context of the transaction and relation-based interactions between a manufacturer and a distributor. Contractual enforcement is not a significant deterrent of opportunism for transactional or relational interactions. Trust is negatively related to opportunism only in transaction-based interactions; perhaps, the threshold for acting opportunistically may be lower because of the short-term nature of the interaction. The ethical level is negatively related to opportunism in transaction and relational interactions.

Examining the farmer-buyer relationships in vegetable marketing channels in Eswatini

ABSTRACTVegetable farming is the main source of livelihood for smallholder farmers in Eswatini. However, the production and marketing challenges they faced inhibits the farmers from benefiting fully, which calls for relational transactions to enhance exchange efficiency. Therefore, this study aims to determine the nature of relationship constructs between vegetable farmers selling to formal and informal channels. Data elicited from 170 farmers were analysed using factor analysis, multiple regression analysis and discriminant analysis. Results revealed that farmers derived satisfaction from the price offered and communication, while trust was derived from satisfaction, communication and duration of the relationship, and commitment was derived from trust in both channels. The discriminant analysis results revealed that there is statistical significant difference between the channels. Farmers supplying formal markets perceived levels of satisfaction, trust, and commitment better than those supplying informal markets. The results also indicated that satisfaction and trust were the best predictors of the nature of the relationships. The lack of written contracts and low produce quantity purchased by the formal markets contributes to the low-level establishment of the farmer-buyer relationships. Therefore, coordinated supply chains and supplier-development approaches are necessary to complement the logistical requirements associated with fresh produce and to create mutual benefits.

Integrated marketing channel relationships: integration dimensions and channel performance

PurposeInter-firm integration is a multidimensional concept. This study aims to examine the performance effects of two aspects of inter-firm integration, coordination integration and authority integration, and their co-alignment with strategic and contextual factors.Design/methodology/approachThe author conducted a quantitative empirical study using survey data of Japanese manufacturing companies’ relationships with their wholesalers to test hypotheses based on a literature review.FindingsCoordination integration has a positive performance effect. There is co-alignment between high (low) coordination integration and high (low) product uniqueness. High (low) coordination integration is associated with high (low) demand uncertainty. High (low) authority integration is consistent with high (low) behavioral uncertainty.Research limitations/implicationsThis study contributes theoretically to marketing channel and business-to-business marketing literature by holistically examining the linkages among governance forms, marketing-strategic factors, exchange-contextual factors and inter-firm performance. A limitation of this study is that the research data were collected in only one country, Japan. Thus, country-specific factors might affect the analytical outcomes.Practical implicationsAppropriate co-alignment among governance, strategies and contexts significantly influences performance. The findings have significant implications for manufacturing firms’ channel strategies.Originality/valueThis study tests the influences of two distinct dimensions of inter-firm integration on inter-firm outcomes, which few previous studies address. It comprehensively examines the linkages among governance forms, strategic factors, environmental factors and performance.

A new approach to Marketing Channel Relationship

A new approach to Marketing Channel Relationship

An Assessment of the Exporting Literature: Using Theory and Data to Identify Future Research Directions

Exporting research is an established facet of the field of international marketing. That stated, the radical increase in recent export activity necessitates a sustained research effort devoted to the topic. In this article, the authors provide a qualitative review of the core theoretical exporting areas and evaluate the exporting domain quantitatively over six decades (1958–2016). For the quantitative analysis, they use multidimensional scaling and apply established bibliometric principles to offer an understanding of the field and to provide suggestions for future exporting research. For the evaluations, the authors used data from 830 articles with 52,191 citations from 35 journals. Using cocitation analysis as the basis to evaluate the data, they propose a series of intellectual structure implications on exporting that relate to internationalization process stages, dynamic capabilities, knowledge scarcity, social networks, export marketing strategy, absorptive capacity and learning, and nonlinear performance relationships involving marketing channel relationships.

A meta-analytic review of influence strategies in marketing channel relationships

Influence strategies (ISs) are a dominant topic in channel research. However, the literature lacks a consensus on when noncoercive and coercive strategies are more valuable or damaging to partnership quality, and their judicious applications remain unclear. Mainly based on social exchange perspectives, we review and conceptualize several contingency factors in the IS-partnership quality relationships in this metaanalysis. The moderating results generally suggest that the stronger positive impacts of noncoercive ISs result from a higher appreciation for supportive attempts, whereas the higher negative sensitivity to coercive ISs can be attributed to the low acceptability of forceful influences. We determine degrees of appreciation and acceptability by the perceived significance of benefits/damages, expectations, and tolerance levels for both strategies. Also, we synthesize and meta-analyze the key outcomes and antecedents of both strategies in an integrated framework. The direct-effect results indicate that the choice of effectively applying both strategies necessitates a tradeoff between goals and priorities.

The impact of value congruence on marketing channel relationship

Organizational values guide acceptable behavior and provide motivational dynamism. Marketing channel literature has yet to address the impact of values on interfirm exchanges. We propose that value congruence between cooperating firms can be an effective governance method. This research examines the impact of value congruence between manufacturers and their primary distributors. Survey data from 278 manufacturing firms demonstrate that perceived value congruence has a positive effect on distributors' performance. Moreover, information sharing and joint problem solving serve as mechanisms that partially mediate the main effect. This research calls for integration of organizational values into partner selection and marketing channel governance.

Channel relationships from the perspectives of manufacturers and their connecting distributors in Indonesia

Purpose– Paired channel relationship constructs are used to conjointly compare the perspectives of Indonesian manufacturers and their connecting distributors when engaging and relating across each shared marketing channel. The purpose of this paper is to hypothesize long-term orientation (LTO) and role-performance as joint drivers that positively influence dependence, satisfaction, and trust constructs for each manufacturer and distributor domain.Design/methodology/approach– A structural equation modelling-comparative model is developed, tested, and validated for the Indonesian manufacturing sector. The sample size is 140 pairs of medium-to-large-sized manufacturers and their connecting distributors. The respondent is individual who is responsible and knowledgeable in dealing with his/her company’s manufacturer or distributor.Findings– Both the manufacturer-distributor LTO and their role-performance jointly drive the outcomes of the shared marketing channel relationship, and both parties’ behaving similarly (except for the influence of their role-performance onto their partner’s satisfaction).Research limitations/implications– This study have not investigated possible two-way interactions between constructs across the channel. Combined, paired, manufacturer and distributor dataset questions can expose the connectivities relationships between the partners. The insignificant influence of role-performance on economic satisfaction within the manufacturer domain requires further research on the possible presence of mediating construct(s) between those constructs, and on the broadening of the definition of satisfaction. Past channel research revealed that trust interacts with satisfaction, yet this study does not find significant interactions between the outcomes constructs.Practical implications– In Indonesia each marketing channel’s manufacturer and distributor management team should jointly enhance both their shared long-term relationship, and their respective role-performance. This long-term view is implementable through long-term marketing channel contracts.Originality/value– This study contributes to marketing channel theory with the LTO and the role-performance of a channel partner jointly driving the other partner’s economic satisfaction, trust, and their dependence specifically within the Indonesian context. The benchmarking of a marketing channel’s performance within a trusting and satisfying channel relationship sets the framework for the development of future optimization studies (of at least the five connectivities constructs used herein).

Improving business performance through brand management practice

The aims of this study are to determine which variables are common as brand management practices, how these variables affect a company?s business performance, and whether there are statistically significant differences between companies in the sample in terms of individual elements of the Brand Management Practice (BMP) model. The research took place in Serbia, and comprised 118 managers and specialists involved in marketing and brand management. After validating the proposed BMP model, we found a link between certain variables of the model and companies? business performance. There are statistically significant differences between companies in terms of individual elements of brand management practice, and we identify three clusters: brand-guided companies, emerging brand companies, and brand-agnostic companies. They differ from each other in terms of: brand-oriented approach, innovativeness, brand support activities, unique marketing offers, marketing channel relationships, brand performance measurement, brand barriers, company size, and specific business area of a key-brand. They also differ according to estimated and actual business and financial performance. The results are valuable for explaining the main drivers of good brand management practice and their effects on business performance in different industry sectors. The implications for managers of domestic companies are also discussed.

Are There “Honorable Merchants” in International Marketing Channels?

The starting points of this initial exploratory study are two research questions: (1) could marketing relationships in international marketing channels be predicted by international marketing managers’ behavior reflected by “honorable merchants’” key concepts (ethics and trust) and experiential learning key concepts such as capability and competence?; and (2) can we measure the progress of this research theme in the international marketing literature and understand the nature of this phenomenon? We examine how scholarly research on international marketing managers’ behavior and their marketing relationships evolved from 2003 to 2013 and envisage the shape of this research theme the next years, to uncover current trends and possible research gaps on the ethics agenda in the international marketing education area. We identified the most salient concepts from 2,083 words for 22 key concepts counted in the abstracts of the 327 journal articles of the international marketing literature, in order to innovatively uncover the trends and concepts, explaining the marketing relationships in the international marketing context. We assessed sets of concepts that best reflect the marketing relationships in international marketing channels and indicated prospects for increasing the focus on specific topics, by conducting a series of multiple linear regression analyses and trend analyses. The research results show that the progress of the research theme can be measured. Innovatively, key competences and capabilities of international marketing managers relating to the key concepts of the “honorable merchant” construct are realized as a strong logical basis for the explanation of effective marketing relationships in international marketing channels. © 2015 Wiley Periodicals, Inc.

IMC in an emerging economy: the Chinese perspective

Integrated marketing communications (IMC) planning and implementation vary greatly by market and country. This study, based on the survey data compiled from 135 Chinese marketing executives, focuses on IMC in China's emerging economy, with the goal of providing an outlook of IMC's current development in China while uncovering factors in the country's socioeconomic and business infrastructures that may cause IMC to deviate from the traditional Western model. The study also explores Chinese responses to the rising proliferation of digital media and its implications for IMC development.The study concludes that despite uneven business development and a current lack of training in IMC-related skills, IMC appears to be the inevitable course or the future of Chinese marketing communications. Due to factors unique to the Chinese business landscape, such as government-owned business structures, political nuances in marketing channel relationships, and uneven development of consumer culture, IMC in China will likely evolve differently than in the US. Survey respondents reveal that IMC is progressing much faster in local, privately owned firms than in their state-owned counterparts. The rise of digital media will also disrupt traditional media outlets, providing challenges to the Chinese marketer.

Do partner relations in marketing channels make a difference in brand management implementation?: Evidence from Serbia and Montenegro

This paper discusses the preconditions for successful business operations of suppliers in Serbia and Montenegro, taking into account their weakening position in marketing channels and relatively weak consumer purchasing power. This research aims to determine the interdependence of brand management and partner relationship development in marketing channels and their influence on brand performance. Therefore, BCR model was constructed. Research into the influence of marketing channel relationships on the business success of supplier operations was especially emphasised. An empirical research was conducted using a sample of 121 managers from Serbia and Montenegro. The results of quantitative analysis confirmed that three independent variables of the BCR model (brand management commitment, marketing channel relationships, and brand myopia) had a statistically significant impact on brand performance. It was also proved that companies, which adopted and implemented marketing channel relationships at a higher level than their competitors, achieved better financial results from their operations. The implications for managers of supplying and retail companies were especially emphasised and discussed.

The role of interfirm reciprocity norm and agent's conscientiousness in supply contract adjustment decision

Purpose – The purpose of this paper is to better understand the main effects of agent conscientiousness and reciprocity norm and the interaction effect of these two factors on contract adjustment decisions in buyer-supplier relationships. Design/methodology/approach – Two scenario-based experiments with college students and business professionals were conducted. Three regression models were run to test three hypotheses proposed in the paper. Research limitations/implications – The limitations of this study are the use of single-agent decision scenarios and the specific focus on one aspect of agent personality – i.e. conscientiousness and its collective influence on contract adjustment decisions. In a broader picture, the results of this study support the cross-level analytical approach to investigating marketing channel relationships, in which individual-level and organizational-level factors interact and determine decision outcomes in business exchanges. Practical implications – Recruiting and promoting managers who exhibit high levels of conscientiousness, coupled with proactively cultivating the norm of reciprocity with suppliers, are critical to a firm's thrust in attaining and sustaining marketing channel management practices with the emphasis on reciprocity-based exchange relationships. Originality/value – While the extant literature focuses largely on interfirm governance and contract enforcement, this study examines what actually influences decision-making agents' contract adjustment decisions. This study expands the marketing literature by investigating the impacts of agent conscientiousness and reciprocity norm on contract adjustment decisions.

Marketing channel relationships in China: A review and integration with an institution-based perspective

Because marketing channel research is predominantly conducted in the Western world, marketing channel theories and practices may not be generalizable to Chinese markets. Despite the rapid growth of Chinese economies and their increasing importance to the global economy, our understanding of marketing channels in China is limited. This research reviews and integrates studies of marketing channels in the Chinese context. From an institution-based perspective, we develop a set of propositions focusing on issues such as guanxi, trust and dependence. We explore the impact of Chinese institutional environments (regulatory, normative and cultural) on marketing channels. Lastly, we offer suggestions to help firms adapt their channel operations to Chinese markets.

More similar than different: A study of cooperative product innovation with multiple external stakeholders

AbstractThis paper uses a strategy—structure—performance-based model of marketing channel relationship structure to conduct an empirical examination of the involvement of four external stakeholder groups in manufacturing firms' product innovation. The results show that firms' stakeholder orientation (strategy), involvement of stakeholders in product innovation (structure) and quality of stakeholder relationships (performance) are intrinsically linked. Also, the way in which multiple stakeholder groups were involved in manufacturing firms' product innovation was more similar than different.

More similar than different: A study of cooperative product innovation with multiple external stakeholders

AbstractThis paper uses a strategy—structure—performance-based model of marketing channel relationship structure to conduct an empirical examination of the involvement of four external stakeholder groups in manufacturing firms' product innovation. The results show that firms' stakeholder orientation (strategy), involvement of stakeholders in product innovation (structure) and quality of stakeholder relationships (performance) are intrinsically linked. Also, the way in which multiple stakeholder groups were involved in manufacturing firms' product innovation was more similar than different.