Consequences of Grocery Retailer Internationalization on KAM Organization - Research Framework and Hypotheses

While the internationalization of retail companies and consumer goods manufacturers is developing dynamically, the changes in retailer/supplier relations, and especially in KAM relations at these two distribution channel levels, have not yet been analysed. The purpose of this research is to develop a framework analysing the consequences of grocery retailer internationalization on Key Account Management (KAM) organization and on the KAM success. Based on a literature review, as well as on resource dependency, transaction cost, and contingency theories, KAM organization is conceptualized by strategy and structure, while the determinants of retailer internationalization on KAM organization are conceptualized by the market position and market approach of retail firms. The theory-based framework leads to hypotheses that address the dependencies of retailer internationalization, KAM organization, and success. This provides insights into the manufacturer’s design of KAM programs, but it is also relevant for retail companies. An understanding of how suppliers develop efficient and effective KAM relationships is important in organizing purchasing activities, as well as international expansion if new supply chains have to be built up in foreign countries and if clear organizational interfaces to suppliers support this work.