2012
DOI: 10.1002/mde.2573
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Manufacturing and Distribution Strategies, Distribution Channels, and Transaction Costs: The Case of Parallel Imported Automobiles

Abstract: We examine how constraints on transnational corporations' official distribution channels, asset specificity, and bounded rationality of franchise dealers and parallel traders contribute to the sustainability of the parallel importation of automobiles. The manufacturing and distribution strategies employed by transnational corporations considerably add to the regional differences in the pricing and availability of specific models, as well as vehicle specifications. These necessary conditions enable opportunisti… Show more

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Cited by 15 publications
(12 citation statements)
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“…Authors observed that several corporate policies contributed to parallel imports (Yeung & Mok, 2013).…”
Section: Literature Reviewmentioning
confidence: 99%
See 2 more Smart Citations
“…Authors observed that several corporate policies contributed to parallel imports (Yeung & Mok, 2013).…”
Section: Literature Reviewmentioning
confidence: 99%
“…Also, it is discussed that some trading options exist for EVs for easy adaptation. Within the scope of the study of Yeung and Mok (2013), the trade style of dealers and parallel traders, as well as the sustainability of parallel imports, is highlighted, in addition to the importance of parallel imports in the strategies for all passenger vehicles produced and marketed by international corporations. They touched on how the production, price, and distribution strategies of multinational companies affect parallel imports and how they try to integrate them into their strategies.…”
Section: Literature Reviewmentioning
confidence: 99%
See 1 more Smart Citation
“…Moving to the downstream part of the supply chain, Boyd and Okleshen Peters (2006) studied the case of the underground mall, a specific format of gray market that is emerging in the USA, which is becoming popular among consumers not only for the lower prices but also for social and entertainment reasons. In an attempt to understand why dealers undertake a gray market, Yeung and Mok (2013) analyzed the case of parallel imported automobiles, finding that the asset specificity and the opportunism of franchise dealers led to the parallel import of cars. The gray market has also been investigated from the perspective of the final consumer to understand the reasons that lead to the choice of buying products in the gray market.…”
Section: Literature Reviewmentioning
confidence: 99%
“…NERA (1999) reported that PI goods within the European Union (EU) include footwear and leather goods, musical recordings, motorcars, consumer electronics, domestic appliances, cosmetics and perfumes, clothing, and so on. Yeung and Mok (2013) reported that the market share of parallel imported automobiles in Hong Kong and Singapore was 1 More specifically, countries choose between adopting national exhaustion and international exhaustion of intellectual property rights. Under national exhaustion, property rights expire only in the market where goods are initially sold.…”
Section: Introductionmentioning
confidence: 99%