The effect of distributors' relationship exploration on relationship quality under market uncertainty

While relationship exploration, or seeking alternative exchange partners, is a ubiquitous marketing channel strategy when facing a volatile marketing environment, how this strategy affects a firm's incumbent relationship is unclear. Drawing upon resource dependency theory and the dynamic capabilities perspective, we argue that a distributor's relationship exploration does not destruct but rather improves the existing relationship by enhancing the focal distributor's dynamic capabilities (e.g., absorptive capability and innovative capability) that are essential in volatile environments. However, the ultimate influence of this strategy via dynamic capabilities is contingent upon the careful alignment of dynamic capabilities with market conditions. Using a sample of electronic component distributors in China, this study confirms the role of dynamic capabilities as underlying mechanisms in the influence of relationship exploration on relationship quality. Moreover, we find that market uncertainty varies the effects of dynamic capabilities differentially; it strengthens the effect of absorptive capability, while it weakens that of innovative capability.     

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.     

Transfer of market knowledge in a channel relationship: Impacts of attitudinal commitment and satisfaction

This paper attempts to explain how a manufacturer's attitudinal commitment and a distributor's kind and degree of satisfaction have an impact on the transferring of market knowledge from the distributor in a channel relationship. Using data from 225 paired distributors and manufacturers in the Chinese household appliances entity, six of our seven research hypotheses were supported. Results of the study show that a distributor's economic satisfaction directly promotes market knowledge transfer, while a distributor's social satisfaction will enhance market knowledge transfer only when positive economic satisfaction already exists. Furthermore, both the calculative commitment and the loyalty commitment of a manufacturer have inverse U-shaped relationships with a distributor's economic satisfaction, and are negatively and positively related, respectively, to the distributor's social satisfaction. The study thus points out the distinct roles of economic satisfaction and social satisfaction and their interaction in market knowledge transfer, and the insightful impacts of calculative and loyalty commitment on economic and social satisfaction. These findings provide new theoretical thinking about channel relationship management and the business practices of manufacturers.     

Understanding the spillover effects of channel reward on observers' commitment: The mediating role of envy

A manufacturer-initiated reward event not only influences the awarded distributor but also alters the behaviors of the unrewarded distributors in the distribution network (i.e., observers). Going beyond a bilateral view of reward, this article examines the spillover effects of rewards on observers. Specifically, taking distributive fairness, procedural fairness, and the magnitude of the reward into consideration, this study postulates that these three aspects of the reward affect observers' level of commitment to the manufacturer through their malicious or benign envy of the awarded recipient. These hypotheses are tested with a survey of 204 distributors from multiple industries in China. The results reveal that distributive fairness of the reward strengthens observers' commitment by decreasing their malicious envy and increasing their benign envy and that procedural fairness and the magnitude of the reward enhance their commitment by increasing their benign envy. We also summarize the theoretical and practical implications about the findings.     

The effects of distributor relationship commitment and relationship exploration on opportunism: The moderating roles of exchange uncertainties and network factors

Channel management entails both the evaluating of incumbent business partners and simultaneously seeking potential new partners. In supplier–distributor exchanges, distributors can explore alternative suppliers while still committing to incumbent suppliers. While the current literature has demonstrated the importance of relationship commitment, the consequences of relationship exploration and whether that exploration is harmful to any incumbent relationships remain unclear. Drawing from relational governance and social network theories, this study thus examines how distributor dual relationship strategies of commitment and exploration influence their opportunistic behavior. The findings from a survey of 328 distributor firms indicate that relationship commitment leads to reduced opportunism; yet relationship exploration exerts no significant main effect on opportunism. More interestingly, these effects are subject to two types of uncertainty and two characteristics of distributor network wherein the focal exchange relationship resides. Specifically, behavioral uncertainty—an internal source of uncertainty—aggravates the opportunism that arises from both strategies, whereas, environmental uncertainty—an external source of uncertainty—alleviates both these effects. The distributor's network density weakens the effect of relationship commitment on opportunism, but network centrality strengthens this effect. By contrasting relationship commitment with relationship exploration under multiple moderating conditions, this study advances the extant channel relationship management literature and practice.     

基于结构计量模型分析渠道结构变动的影响——以中国移动定制机分销模式的变动为例

以中国移动定制机分销模式的变动为例,本文运用结构计量模型对渠道结构变动的经济效应做了实证分析。在估计出需求参数和渠道成本参数的基础上,本文通过反事实模拟方法,评估了中国移动推行后向一体化战略对产业链上各行为主体的经济影响。结果发现,国代商同时向社会渠道和中国移动渠道分销定制机存在显著的规模经济;中国移动收回国代商定制机的分销代理权后,国代商与中国移动自身的边际成本均有所上升,且二者的利润边际都出现下降,这意味着中国移动改变企业边界和渠道结构安排是明显的"双输"决策。     

Motivating independent distribution channel members

'This article discusses a general program for motivating independent distributors (channel members) to do a more effective selling job for the manufacturer. The program consists of three basic facets: (1) finding out the needs and problems of channel members; (2) offering support to channel members that is consistent with their needs and problems; and (3) providing the necessary leadership to institute the motivation programs. Practical methods and case histories are presented to illustrate how this motivation program can help to foster a more highly motivated group of channel members.     

Tripartite role of communications in channel relationships: Mitigating exchange hazards,reducing opportunism,and curtailing its ill effects on relationship performance

Mitigating channel members' opportunism is critical for supplier firms to maintain superior channel relationships and sustain relationship performance. Research in marketing channels suggests that supplier-channel member communication is vital for reducing information asymmetry and developing relational bonds in channel relationships. Building on that, in this research, we integrate information asymmetry and relationship-based views to articulate how communication, directly and indirectly, influences channel members' opportunism and curtail its ill effects on relationship performance. Based on the matched data from 239 supplier-distributor dyads, we find that communications (instrumental and social) have tripartite effects on channel outcomes, i.e., a) it directly reduces channel members' opportunism, b) weakens (negatively moderate) the positive effects of exchange hazards (antecedents) on opportunism and c) curtail the ill effects of opportunism on relationship performance. Additionally, we find that instrumental and social communications can have nuanced effects on channel members' opportunism. We provide newer insight into the role of communications in managing channel outcomes and present important theoretical and managerial implications.     

Estimating the foreclosure effect of exclusive dealing: Evidence from the entry of specialty beer producers

This paper estimates an entry model to study the effect of exclusive dealing between Anheuser Busch and its distributors on rival brewers' entry decisions and consumer surplus. The entry model accounts for post-entry demand conditions and strategic spillover effects. I recover a brewer's fixed costs using a two-step estimator and find spillover effects on brewers' entry decisions. I find that a brewer has higher fixed costs at locations where Anheuser Busch employ exclusive distributors, but the effect is only statistically significant in certain local areas. The estimates also show that a brewer is less likely to enter a location that is farther from its brewery, has lower expected demand, or is smaller in store size. I implement counterfactual experiments to study the effect of banning exclusive contracts between Anheuser Busch and its distributors. The results show that the welfare improvement associated with banning such contracts is very small.     

Market and supplier characteristics driving distributor relationship quality in international marketing channels of industrial products

Although we are beginning to comprehend the fundamental importance of relationship quality in interorganizational exchange, a relatively small, but growing, body of literature that has not kept pace with the tremendous growth in global channel transactions has been devoted to the development of cross-border relationship quality. This study addresses this gap in the literature by investigating the extent to which certain market and exporter characteristics affect the development of relationship quality in the context of importing distributors trading with exporting manufacturers of industrial products. Relationship quality is viewed as a higher-order construct composed of trust, commitment, and satisfaction. Findings reveal that psychic distance is related negatively to relationship quality, while transaction-specific investments and role performance are associated positively with relationship quality. No link is found between environmental uncertainty and relationship quality. Managerial implications of the findings are considered and limitations along with future research directions discussed.     

Defending Home against Giants: Exclusive Dealing as a Survival Strategy for Local Firms*

We consider exclusive contracts a survival strategy for a local incumbent manufacturer facing a multinational manufacturer's entry. Although both manufacturers prefer to trade with an efficient local distributor, trading with inefficient competitive distributors is acceptable only to the entrant, because of the entrant's efficiency. Hence, such competitive distributors can be an outside option for the entrant. As the entrant becomes efficient, the outside option works effectively, implying that the entry does not considerably benefit the efficient local distributor. Thus, the local manufacturer is more likely to sign an anticompetitive exclusive contract with the efficient distributor as the entrant becomes efficient.     

公司品牌形象对经销商关系导向的影响——基于主导地位制造商的中国实证

迄今学术界偏重于研究公司品牌形象对消费者产品反应的影响。本研究检验公司品牌形象对经销商关系导向的影响。本文检验了公司品牌的能力和诚信两个因素影响经销商经济满意度和社交满意度,进而影响其关系导向的机制。研究发现,诚信对经销商经济满意度和社交满意度的影响效应大于能力;社交满意度对关系导向的影响效应大于经济满意度。研究显示,处于主导地位的制造商,当务之急是改善诚信形象,这将有助于提升经销商整体满意度,强化经销商的长期关系导向。论文讨论了研究结论对企业营销战略的借鉴意义,指出了局限性及未来研究方向。     

Channel members' relationships with the brands they sell and the organizations that own them

Relations between channel member organizations are not the only relationships of importance in channels research. Significant relationships also exist between channel members and the brands that they represent and sell. Just as in consumer brand relationships, we find that downstream agents co-create the meaning of the brand with which they form relationships. However, unlike consumer brand relationship models that often conflate brand and company, treating them as one; we find that brand relationships in a B2B setting are independent and distinct from the relationships formed between downstream agents and the owners and/or managers of the brand. These particular brand relationships are complicated by the high switching costs associated with long term investments. The findings from a four-year multi-method research project, including ethnographic and survey data, point to the salience of these brand relationships and their importance to channel management. We find that perceived stability of the corporate channel partner, as well as perceptions of overlap between the corporate identity and that of the brand, are key antecedents of the downstream channel members' relationship with the corporation.     

Realigning industrial marketing channels

Dramatic changes are occurring in industrial patterns of distribution. This article provides a structure for analyzing realignments in industrial marketing channels. Specifically, the analysis centers on the channel efficiency and effectiveness dimensions that were generated by a shift from industrial distributors to a public warehouse.     

Computer usage in distributor marketing

The use of computer systems by industrial distributors in marketing management is explored. Based upon the results of a mail survey and personal interviews with distributor managers, the article identifies where distributors are now in terms of computer usage, where they are going, and what steps need to be taken to improve their use of the computer in marketing management.     

Relationship satisfaction: An overlooked marketing channel safeguard

Transaction specific investments (TSIs) are investments that a marketing channel firm makes to create value for a particular channel relationship. TSIs transform the relationship by creating barriers to exit or lock-in situations because the investing party cannot leave the relationship without incurring substantial costs. This situation may compel the investing party to engage in opportunism to recoup the value of the specific investments, particularly when they are not satisfied with the relationship. We argue, therefore, that relationship satisfaction may serve as an important safeguard when TSIs have been made. Further, we argue that monitoring ease will interact with the moderating effect of relationship satisfaction on the relationship between TSIs and opportunism. Data were collected from 296 hotel general managers and 37 hotel headquarters' field representatives in the U.S. and Canada to test these possibilities. We found that relationship satisfaction indeed serves as an important safeguard, particularly when the partner has difficulty in monitoring the firm.     

Delineating Design Factors that Influence the Global Product Launch Process*

Preparing for and managing the global product launch process offers unique challenges as each targeted country can pose unique differences across the design categories of channel parameters, country mores, language and colloquialisms, and technology infrastructure. Though not an exhaustive list, these have a predominant influence on the global product launch process on a per‐global‐region basis. Using a case‐study methodology, this article draws on the global product launch experiences of two firms, showing that such influences preclude use of a mass‐marketing, standardization approach. Though it appears that certain elements of global product launch may be standardized for purposes of efficiencies, a global product launch appears to require at least some degree of customization. Such thinking parallels a design perspective, which mandates a tailoring of product and marketing mix to encourage early acceptance within the intended global market. To suggest when customization should be employed, four design categories of channel parameters—country mores, language and colloquialisms, and technology infrastructure—appear to have strong propensity to dictate customized design requirements for a worldwide launch, where greater differences across these design categories would mandate more customization toward each respective global region. Post hoc comments by managers in the focal case studies support this and further delineate that these four design factors necessitate keen consideration in the course of planning and enacting activities during the global product launch process. The two cases studies especially show that customized design decisions will likely pertain to launch schedule due to local retailers' calendars, product aesthetics due to local consumer preferences, point‐of‐sale and other marketing communications due to language requirements, and technology enhancements in light of local market acceptability and both social and regulatory expectations. Managers involved in planning a global product launch should therefore heed channel owners—brand owners, retailers, and distributors—so that they give preference to, promote, and sell the respective company's product relative to competitors' products. To assist toward securing such preference status, channel owners should have a role in advising the timing of launch and design considerations (e.g., color and form). Logistic issues, such as delivery and after‐sales support via this channel, are keen considerations as well. Logistics has to be thought through to ensure that demand can be met across all regions for a new product. And with the growing prevalence of Internet worldwide, managers must pay keen attention to cultural references and language used on any Internet site to ensure that the product is properly represented and promoted during its global launch. The process of a global product launch is therefore more than the company's ability to gain access to a particular market; it is the company's ability to understand key design issues per each global region respectively and to respond to pressing global region differences by customizing the total product offering to meet the needs of that global region.     

Distribution contracts to support optimal inventory holdings under demand uncertainty

When suppliers produce products for which demand is uncertain, they face a problem of inducing downstream distributors to stock inventory levels that the suppliers prefer. This paper considers a wide array of alternative supply contracts, each of which consists of a mixture of constant per-unit wholesale prices, buy-back arrangements, and post sale payments contingent on sales made, such as revenue sharing or buybacks. We show that linear supply contracts specifying any combination of two of these three instruments can implement the vertical integrated outcome for a monopoly, thereby generating the supplier's preferred inventory configuration and price distribution. We extend our results to differentiated product oligopoly, demonstrating that each supplier obtains its preferred inventory configuration and price distribution, given the choices of its rival. Distributors choose optimal inventories from the suppliers' standpoint, even if suppliers do not know the distribution of demand uncertainty, and, given the perfect competition among distributors, all profits in the supply chain are captured by suppliers. Thus, suppliers are able to deal with demand uncertainty with remarkably little information about demand, and without the need to control dealer actions in detail. In particular, suppliers need not specify either dealer inventories or resale prices, but instead encourage distributors to order based on information in their possession and to set prices that generate desirable resale price dispersion.     

Testing the conflict-performance assumption in business-to-business relationships

There is little empirical research published testing the interdependency between conflict in business-to-business relationships and commercial performance. The “conflict-performance assumption”—all other factors being equal, relationships where conflict is low will outperform relationships where conflict levels are higher—remains central in the marketing channels' literature despite insufficient and contradictory empirical evidence. There are several explanations for the lack of a clear relationship between conflict and performance. Rosenbloom [J. Mark. 37 (1973) 26] theorises that the relationship between conflict and channel performance follows an inverted U-shaped curve, where conflict is most productive at moderate levels and least productive at very low or high levels. Others have argued for a simpler, linear relationship between conflict and performance, usually negative in nature. Various theories about the conflict-performance relationship are empirically tested in a large marketing channel, using a number of dyadic and monadic measures of conflict (latent, perceived, and affective) and two objective measures of performance (effectiveness and efficiency). A linear model (performance declining as conflict increases) is adequate to explain the relationship between dyadic measures of both perceived and affective conflict and channel effectiveness. A threshold model is found to be superior to a linear model in explaining the relationship between dyadic measures of perceived and affective conflict and efficiency. Conflict increases slowly as efficiency falls until a threshold is reached when conflict escalates. Practical implications include that companies need to consider whether performance criteria affecting efficiency are as important to their business partners as those affecting effectiveness. If they are not, then business partners should be rewarded for meeting any such criteria that are more important to the one side of a relationship dyad than to the other.