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Export channel dynamics: an empirical investigation

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Author Info

  • Gabriel R.G. Benito
  • Torben Pedersen

    (Department of International Economics and Management, Copenhagen Business School, Frederiksberg DK-2000, Denmark)

  • Bent Petersen

    (Department of International Economics and Management, Copenhagen Business School, Frederiksberg DK-2000, Denmark)

Abstract

We investigate the dynamics of export channel arrangements by modelling foreign operation method decisions as the interplay between factors that motivate switches and factors that deter them. Our model extends previous analyses by looking simultaneously at (1) no change of channel arrangement, (2) replacements of foreign intermediaries (within-mode shifts), and (3) integration of the sales function abroad (between-mode shifts). We use a multinomial logit model on longitudinal data from a sample of Danish exporters that had entered foreign markets through intermediaries. The results suggest that the decision to carry out within-mode shifts (i.e. to replace an existing intermediary) is driven by a different set of factors than the decision to switch to another foreign operation mode (i.e. to in-house operations). Copyright © 2005 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/mde.1190
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Managerial and Decision Economics.

Volume (Year): 26 (2005)
Issue (Month): 3 ()
Pages: 159-173

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Handle: RePEc:wly:mgtdec:v:26:y:2005:i:3:p:159-173

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/7976

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References

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  1. Williamson, Oliver E, 1983. "Credible Commitments: Using Hostages to Support Exchange," American Economic Review, American Economic Association, vol. 73(4), pages 519-40, September.
  2. Katsikeas, Constantine S. & Al-Khalifa, Ali & Crick, Dave, 1997. "Manufacturers' understanding of their overseas distributors: the relevance of export involvement," International Business Review, Elsevier, vol. 6(2), pages 147-163, April.
  3. Levinthal, Daniel, 1988. "A survey of agency models of organizations," Journal of Economic Behavior & Organization, Elsevier, vol. 9(2), pages 153-185, March.
  4. Stephen J Kobrin & John Basek & Stephen Blank & Joseph La Palombara, 1980. "The Assessment and Evaluation of Noneconomic Environments by American Firms: A Preliminary Report," Journal of International Business Studies, Palgrave Macmillan, vol. 11(1), pages 32-47, March.
  5. Clark, Timothy & Pugh, Derek S. & Mallory, Geoff, 1997. "The process of internationalization in the operating firm," International Business Review, Elsevier, vol. 6(6), pages 605-623, December.
  6. Calof, Jonathan L. & Beamish, Paul W., 1995. "Adapting to foreign markets: Explaining internationalization," International Business Review, Elsevier, vol. 4(2), pages 115-131, June.
  7. Benito, Gabriel R. G. & Pedersen, Torben & Petersen, Bent, 1999. "Foreign operation methods and switching costs: conceptual issues and possible effects," Scandinavian Journal of Management, Elsevier, vol. 15(2), pages 213-229, June.
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Cited by:
  1. Asmussen, Christian G. & Benito, Gabriel R.G. & Petersen, Bent, 2009. "Organizing foreign market activities: From entry mode choice to configuration decisions," International Business Review, Elsevier, vol. 18(2), pages 145-155, April.
  2. Swoboda, Bernhard & Olejnik, Edith & Morschett, Dirk, 2011. "Changes in foreign operation modes: Stimuli for increases versus reductions," International Business Review, Elsevier, vol. 20(5), pages 578-590, October.
  3. Andersen, Torben Juul & Foss, Nicolai Juul, 2005. "Strategic opportunity and economic performance in multinational enterprises: The role and effects of information and communication technology," Journal of International Management, Elsevier, vol. 11(2), pages 293-310, June.

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