Efficiency of governance mechanisms in China's distribution channels
As multinational enterprises increasingly enter the Chinese market, channel researchers are paying increasing attention to the efficiency of channel governance mechanisms in this nontraditional market. Yet current research neglects different distributor characteristics, such as risk preferences and long- or short-term orientations. In China, an emerging market with continuously evolving legal institutions, distributors' core business orientations (risk preference and long-term orientation) may affect their channel relationship with suppliers (distributor trust and channel conflict). The efficiency of hierarchical and relational governance mechanisms also may depend on distributor orientations. Using a national sample of distributors in China, this study confirms that both governance mechanisms exert significant main effects on channel relationships. In addition, the two core distributor orientations moderate the effects of the manufacturer's hierarchical governance mechanisms on relationship quality, though they do not for relational governance mechanisms. The results suggest that multinational enterprises should tailor their governance mechanisms to distributors with different risk and long-term orientations.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 17 (2008)
Issue (Month): 5 (October)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/bibliographic|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David A Griffith & Matthew B Myers, 2005. "The performance implications of strategic fit of relational norm governance strategies in global supply chain relationships," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(3), pages 254-269, May.
- C Zhang & S T Cavusgil & A S Roath, 2003. "Manufacturer governance of foreign distributor relationships: do relational norms enhance competitiveness in the export market?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(6), pages 550-566, November.
- Henisz, Witold J. & Williamson, Oliver E., 1999.
"Comparative Economic Organization—Within and Between Countries,"
Business and Politics,
Cambridge University Press, vol. 1(03), pages 261-277, November.
- Henisz Witold J. & Williamson Oliver E., 1999. "Comparative Economic Organization—Within and Between Countries," Business and Politics, De Gruyter, vol. 1(3), pages 261-278, December.
- Robertson, Christopher & Chetty, Sylvie K., 2000. "A contingency-based approach to understanding export performance," International Business Review, Elsevier, vol. 9(2), pages 211-235, April.
- Marshall, Ronald Scott, 2003. "Building trust early: the influence of first and second order expectations on trust in international channels of distribution," International Business Review, Elsevier, vol. 12(4), pages 421-443, August.
- Lee, Don Y., 2001. "Power, conflict and satisfaction in IJV supplier -- Chinese distributor channels," Journal of Business Research, Elsevier, vol. 52(2), pages 149-160, May.
- James G. March & Zur Shapira, 1987. "Managerial Perspectives on Risk and Risk Taking," Management Science, INFORMS, vol. 33(11), pages 1404-1418, November.
- Jaffe, Eugene Donald & Yi, Ling, 2007. "What are the drivers of channel length? Distribution reform in The People's Republic of China," International Business Review, Elsevier, vol. 16(4), pages 474-493, August.
- Li, Lee & Ng, Peggy, 2002. "Market exchanges, hierarchical exchanges or relational exchanges in export channels into emerging markets," International Business Review, Elsevier, vol. 11(6), pages 707-723, December.
- Jane W Lu, 2002. "Intra- and Inter-organizational Imitative Behavior: Institutional Influences on Japanese Firms' Entry Mode Choice," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(1), pages 19-37, March.
- Skaperdas, Stergios, 1991. "Conflict and Attitudes toward Risk," American Economic Review, American Economic Association, vol. 81(2), pages 116-120, May.
- Harry G Barkema & Freek Vermeulen, 1997. "What Differences in the Cultural Backgrounds of Partners Are Detrimental for International Joint Ventures?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(4), pages 845-864, December.
- Fang Wu & Rudolf R Sinkovics & S Tamer Cavusgil & Anthony S Roath, 2007. "Overcoming export manufacturers’ dilemma in international expansion," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(2), pages 283-302, March.
- Elke U. Weber & Christopher Hsee, 1998. "Cross-Cultural Differences in Risk Perception, but Cross-Cultural Similarities in Attitudes Towards Perceived Risk," Management Science, INFORMS, vol. 44(9), pages 1205-1217, September.
When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:17:y:2008:i:5:p:509-519. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.