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Manufacturer governance of foreign distributor relationships: do relational norms enhance competitiveness in the export market?

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Author Info

  • C Zhang

    (Michigan State University, MI, USA)

  • S T Cavusgil

    (Michigan State University, MI, USA)

  • A S Roath

    (University of Oklahoma, USA)

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    Abstract

    Research on international marketing channels accentuates the importance of relational norms and trust-building activities between buyers and sellers. Indeed, cultural and country differences may limit the use and effectiveness of traditional tools (such as market incentives and authoritative control) that govern the relationship between an exporting manufacturer and its foreign distributor. Consequently, exporting manufacturers need to emphasize relationships with their foreign distributors. This research finds evidence that supports both direct and indirect effects between the manufacturer's use of governance via relational norms and its competitiveness in the export market. The indirect effect results from the mediating role of trust, a finding that makes a key contribution to the understanding of the role of relational governance in cross-border relationships. Journal of International Business Studies (2003) 34, 550–566. doi:10.1057/palgrave.jibs.8400051

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    Bibliographic Info

    Article provided by Palgrave Macmillan in its journal Journal of International Business Studies.

    Volume (Year): 34 (2003)
    Issue (Month): 6 (November)
    Pages: 550-566

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    Handle: RePEc:pal:jintbs:v:34:y:2003:i:6:p:550-566

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    Cited by:
    1. Sachdev, Harash J. & Bello, Daniel C., 2014. "The effect of transaction cost antecedents on control mechanisms: Exporters’ psychic distance and economic knowledge as moderators," International Business Review, Elsevier, vol. 23(2), pages 440-454.
    2. Roine, Henna & Sainio, Liisa-Maija & Saarenketo, Sami, 2012. "Export channel pricing management for integrated solutions," jbm - Journal of Business Market Management, Free University Berlin, Marketing Department, vol. 5(3), pages 195-214.
    3. Dong, Maggie Chuoyan & Tse, David K. & Cavusgil, S. Tamer, 2008. "Efficiency of governance mechanisms in China's distribution channels," International Business Review, Elsevier, vol. 17(5), pages 509-519, October.
    4. Bloemer, Josée & Pluymaekers, Mark & Odekerken, Armand, 2013. "Trust and affective commitment as energizing forces for export performance," International Business Review, Elsevier, vol. 22(2), pages 363-380.
    5. Taape, Julian, 2014. "Das Kooperationsverhalten von Familienunternehmen: Ergebnisse einer empirischen Studie," Arbeitspapiere 141, Westfälsche Wilhelms-Universität Münster (WWU), Institut für Genossenschaftswesen.
    6. Martin-Tapia, Inmaculada & Aragon-Correa, Juan Alberto & Senise-Barrio, Maria Eugenia, 2008. "Being green and export intensity of SMEs: The moderating influence of perceived uncertainty," Ecological Economics, Elsevier, vol. 68(1-2), pages 56-67, December.
    7. Gert-Jan M. Linders & Arjen Slangen & Henri L.F. de Groot & Sjoerd Beugelsdijk, 2005. "Cultural and Institutional Determinants of Bilateral Trade Flows," Tinbergen Institute Discussion Papers 05-074/3, Tinbergen Institute.
    8. Yang, Chin-Fang & Lai, Chi-Shiun, 2012. "Relationship learning from organizational knowledge stores," Journal of Business Research, Elsevier, vol. 65(3), pages 421-428.
    9. BOEHE, Dirk Michael, 2009. "Corporate Social Responsibility, Product Differentiation Strategy and Export Performance," Insper Working Papers wpe_186, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
    10. Nes, Erik B. & Solberg, Carl Arthur & Silkoset, Ragnhild, 2007. "The impact of national culture and communication on exporter-distributor relations and on export performance," International Business Review, Elsevier, vol. 16(4), pages 405-424, August.
    11. D. Vandaele & P. Gemmel, 2007. "Dealing with Business Service Transactions after the Sourcing Decision: Influence of Contract and Uncertainty," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 07/432, Ghent University, Faculty of Economics and Business Administration.
    12. Kim, Daekwan & Basu, Choton & Naidu, G.M. & Cavusgil, Erin, 2011. "The innovativeness of Born-Globals and customer orientation: Learning from Indian Born-Globals," Journal of Business Research, Elsevier, vol. 64(8), pages 879-886, August.
    13. Kyj, Myroslaw J. & Kyj, Larissa, 2009. "An institution-stakeholder framework for examining business relationship dynamics in a transforming Eastern Europe," Journal of World Business, Elsevier, vol. 44(3), pages 300-310, July.
    14. Alfred Wong & Dean Tjosvold & Pengzhu Zhang, 2005. "Supply Chain Relationships for Customer Satisfaction in China: Interdependence and Cooperative Goals," Asia Pacific Journal of Management, Springer, vol. 22(2), pages 179-199, June.
    15. Lumineau, Fabrice & Henderson, James, 2012. "The influence of relational experience and contractual governance on the negotiation strategy in buyer-supplier disputes," MPRA Paper 38510, University Library of Munich, Germany.
    16. Svendsen, Mons Freng & Haugland, Sven A., 2011. "Host country institutional pressures and cross-border relationship governance," International Business Review, Elsevier, vol. 20(3), pages 324-337, June.
    17. Dirk Boehe & Luciano Barin Cruz, 2010. "Corporate Social Responsibility, Product Differentiation Strategy and Export Performance," Journal of Business Ethics, Springer, vol. 91(2), pages 325-346, February.
    18. Keh, Hean Tat & Nguyen, Thi Tuyet Mai & Ng, Hwei Ping, 2007. "The effects of entrepreneurial orientation and marketing information on the performance of SMEs," Journal of Business Venturing, Elsevier, vol. 22(4), pages 592-611, July.
    19. Lee, Yikuan & Cavusgil, S. Tamer, 2006. "Enhancing alliance performance: The effects of contractual-based versus relational-based governance," Journal of Business Research, Elsevier, vol. 59(8), pages 896-905, August.
    20. Parente, Ronaldo C. & Baack, Daniel W. & Hahn, Eugene D., 2011. "The effect of supply chain integration, modular production, and cultural distance on new product development: A dynamic capabilities approach," Journal of International Management, Elsevier, vol. 17(4), pages 278-290.
    21. Kolloge, Konstantin, 2009. "Die Messung des Kooperationserfolges in der empirischen Forschung: Ergebnisse einer Literaturstudie," Arbeitspapiere 76, Westfälsche Wilhelms-Universität Münster (WWU), Institut für Genossenschaftswesen.
    22. Theurl, Theresia & Kolloge, Konstantin, 2009. "Internationale Unternehmenskooperationen im deutschen Maschinenbau: Eine empirische Analyse," Arbeitspapiere 81, Westfälsche Wilhelms-Universität Münster (WWU), Institut für Genossenschaftswesen.
    23. Tsui-Yii Shih & Rumintha Wickramasekera, 2011. "Export decisions within Taiwanese electrical and electronic SMEs: The role of management characteristics and attitudes," Asia Pacific Journal of Management, Springer, vol. 28(2), pages 353-377, June.
    24. Obadia, Claude & Vida, Irena, 2011. "Cross-border relationships and performance: Revisiting a complex linkage," Journal of Business Research, Elsevier, vol. 64(5), pages 467-475, May.

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