The interplay of task allocation patterns and governance mechanisms in industrial distribution channels |
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Authors: | Jean L JohnsonAuthor Vitae UN UmeshAuthor Vitae |
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Institution: | a Department of Business Administration, College of Business and Economics, Washington State University, Pullman, WA 99164-4730, USA b Washington State University, 14204 NE Salmon Creek Avenue, Vancouver, WA 98686, USA |
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Abstract: | Task allocation involves the placement and performance of distribution subtasks among participants on an on-going basis in the channel. The authors offer an extended conceptualization of task allocation and examine its interplay in varying environmental conditions with shared decision making, pseudo-vertical integration, and dependence. They test the hypothesized relationships with three-stage least squares regression on a sample of farm equipment dealers. Results show that contractually based pseudo-vertical integration facilitates task allocation and, in turn, enlarged dealer task allocation patterns result in pseudo-vertical integration. Firm size has a significant influence on pseudo-vertical integration. In turbulent environments, dealers rely more heavily on shared decision making to allocate tasks than they do in stable environments. Although dependence increases pseudo-vertical integration, its effects on other factors are minimal. The results suggest that task allocation is an important construct that relates to several commonly observed channel characteristics. |
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Keywords: | Distribution channel Task allocation Governance Dependence Vertical integration Shared decision making |
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