Foreign Manufacturing Subsidiaries' Channel Selection in the U.S. Market:

This study investigates what factors affect foreign manufacturing subsidaries' channel choice, that is, the selection between integrated channels and independent distributors for their products in the U.S. market. The results of a logit analysis with 172 foreign-owned subsidiaries as a sample show that the product's transaction-specific assets are the most important factor explaining the use of integrated channels. Additionally, sales size, the time the product has been on the market, and the experience of operating in the United States were found to be significant factors. However, the home country nationality does not appear to affect significantly the channel selection of a foreign firm in the U.S. market.