Export channel design: The use of foreign distributors and agents |
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Authors: | Daniel C Bello Ritu Lohtia |
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Institution: | (1) Georgia State University, USA |
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Abstract: | Because many manufacturers are unable to integrate vertically into global distribution, the nonintegrated market entry modes
of foreign distributor and agent are frequently used. Unfortunately, little is known about choosing efficiently between distributor
and agent because research has only partially examined the importance of transaction and production costs in determining institutional
arrangements. To specify efficient channel design, this article develops and tests hypotheses linking the characteristics
of export exchange to the cost-minimizing mode of export channel governance. Based on a sample of 269 manufacturers, results
suggest that market diversity, type of transaction-specific asset, and production cost economies all affect the choice between
foreign-based agents and distributors. The article concludes with the implications of these results for export management
and future export research.
He received his Ph.D. from Michigan State University. His research interests include distribution strategy and international
marketing. He has published in theJournal of Marketing, European Journal of Marketing, Journal of International Business Studies, Journal of Business Research,
Industrial Marketing Management, andJournal of Advertising. He serves on the editorial review boards of various professional journals including theJournal of Marketing and theJournal of Business Research.
She received her Ph.D. from the University of Maryland. Her research interests include buyer-seller relationships and business-to-business
marketing. She has published in theJournal of Business Research, Industrial Marketing Management, Journal of Global Marketing, and in the proceedings of various professional conferences. |
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