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Export channel dynamics: an empirical investigation

Author

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  • 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.

Suggested Citation

  • Gabriel R.G. Benito & Torben Pedersen & Bent Petersen, 2005. "Export channel dynamics: an empirical investigation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 159-173.
  • Handle: RePEc:wly:mgtdec:v:26:y:2005:i:3:p:159-173
    DOI: 10.1002/mde.1190
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    References listed on IDEAS

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    1. 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.
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    3. 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.
    4. Calof, Jonathan L. & Beamish, Paul W., 1995. "Adapting to foreign markets: Explaining internationalization," International Business Review, Elsevier, vol. 4(2), pages 115-131, June.
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    7. Levinthal, Daniel, 1988. "A survey of agency models of organizations," Journal of Economic Behavior & Organization, Elsevier, vol. 9(2), pages 153-185, March.
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    1. repec:spr:manint:v:51:y:2011:i:6:d:10.1007_s11575-011-0101-4 is not listed on IDEAS
    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. 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.
    4. 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.
    5. Li, Min & He, Xinming & Sousa, Carlos M.P., 2017. "A review of the empirical research on export channel selection between 1979 and 2015," International Business Review, Elsevier, vol. 26(2), pages 303-323.
    6. repec:spr:manint:v:50:y:2010:i:6:d:10.1007_s11575-010-0059-7 is not listed on IDEAS

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