Direct or indirect channel structures. Evaluating the impact of channel governance structure on export performance. Issue 1 (February 2015)

• Record Type: Journal Article
• Authors: Rambocas, Meena; Meneses, Raquel; Monteiro, Carlos; Brito, Pedro Quelhas
• Is Part Of: International business review. Volume 24:Issue 1(2015:Feb.)
• Page Start: 124
• Page End: 132
• Publication Date: 2015-02
• Subjects: Distribution channel -- Exporter profitability -- Loyalty -- Relationship -- Satisfaction; International business enterprises -- Periodicals; 338.8805
• DOI: 10.1016/j.ibusrev.2014.07.002
• Languages: English
• ISSNs: 0969-5931

Abstract

Highlights: The paper examined the impact of channel governance structure on export performance. Profit is higher in markets serviced by indirect channels compared to those served by direct channels. Long term marketing outcomes of buyer economic satisfaction and loyalty are higher in markets serviced by direct channels. Abstract: The purpose of the study is to examine the impact of channel governance structure on export performance ex post. The study surveyed 105 foreign buyers of crane services from five countries and used MANOVA to test the effects of channel governance structure on export short term and long term performance outcomes. The study found that short term profitability was higher for indirect distribution channel arrangements while longer term outcomes of buyer economic satisfaction and loyalty were higher for direct. The results suggest that exporters are more likely to achieve immediate financial objectives with the support from indirect channels; however, long term objectives are more effectively achieved through direct channels.