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Distribution Equity: Creating Value through Managing Knowledge Relationships with Distribution Channels |
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| Authors: | D. Sudharshan Ron Sanchez |
| Affiliation: | (1) Department of Business Administration, College of Commerce and Business Administration, University of Illinois, Urbana-Champaign, 1206 South Sixth Street, Champaign, IL 61820, USA;(2) Graduate School of Management, University of Western Australia, Nedlands, 6907, W.A., Australia |
| Abstract: | We introduce the concept of distribution equity torepresent the asset value of a distribution relationship. Distributionequity is characterized as the increase in options value ofmarketing opportunities that result when a firm effectively utilizesits knowledge relationships with an existing distribution channelpartner to create and market its products. By providing a frameworkcharacterizing various forms of knowledge in a channel partnerrelationship and the ways in which they can increase the optionsvalue of a firm's product development and marketing opportunities,we provide a framework for improving the management of distributionequity. |
| Keywords: | Distribution channels options value knowledge management |
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