Understanding distributor opportunism in a horizontal network

Zeng, Fanxin; Chen, Ying; Dong, Maggie Chuoyan; Zheng, Jinhui

doi:10.1016/j.indmarman.2015.01.018

Cited by 32 publications

(35 citation statements)

References 138 publications

(184 reference statements)

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“…For example, sales partners may begin selling products through unauthorized channels, undermining the manufacturer’s sales channel management. Research confirms that competition between indirect channels results in opportunistic behaviors against the manufacturer (Zeng et al 2015).…”

Section: Hypothesis Development From a Contingent Alignment Perspectivementioning

confidence: 60%

“…Multiple agency theory suggests that indirect channel usage increases moral hazard concerns due to competition or cooperation between indirect channels (e.g., Holmstrom 1982; Tirole 1986). Notably, research demonstrates that cooperative and competitive behavior can occur simultaneously; thus, both paths are not mutually exclusive (Luo, Rindfleisch, and Tse 2007; Tsai 2002; Zeng et al 2015). Sa Vinhas and Heide’s (2015) idea that dual distribution can induce competition between direct and indirect channels can also be transferred to an increase in competition between indirect channels.…”

Section: Hypothesis Development From a Contingent Alignment Perspectivementioning

confidence: 99%

“…Sales partners may, however, also demonstrate cooperative behaviors among each other. Representatives from indirect channels may hold regional meetings and exchange information or run joint promotions or events (El Akremi, Mignonac, and Perrigot 2011; Zeng et al 2015). Bradach (1997) observes that more senior franchisees train and socialize newer franchisees, which can lead to cooperative behaviors in the future.…”

Section: Hypothesis Development From a Contingent Alignment Perspectivementioning

confidence: 99%

“…Similarly, increased indirect channel usage may make manufacturers particularly vulnerable to shirking or misdirected efforts by sales partners (Zeng et al 2015; Zheng et al 2020). For example, in 2018, when the BMW Group tried to enforce novel contracts with its indirect sales partners, it experienced substantial resistance: 90% of BMW’s indirect sales partners joined forces to combat the novel contract terms, even jointly threatening BMW with terminating their current contracts (Fasse 2018).…”

mentioning

confidence: 99%

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Design and Governance of Multichannel Sales Systems: Financial Performance Consequences in Business-to-Business Markets

Homburg

Vomberg²,

Muehlhaeuser³

2020

Journal of Marketing Research

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Multichannel sales systems in business-to-business markets vary substantially in their designs and thereby either attenuate or aggravate agency conflicts between manufacturers and sales partners. Drawing on multiple agency theory, the authors introduce direct and indirect channel usage as focal design dimensions of multichannel sales systems and investigate each channel’s performance effects using a matched manufacturer–sales partner data set. Whereas direct channel usage predominantly lowers agency conflicts in terms of information asymmetry and sales partner moral hazard, indirect channel usage amplifies moral hazard concerns. How those sales partner effects translate into manufacturer performance outcomes critically depends on governance mechanisms, confirming predictions from governance value analysis: formalization enhances performance outcomes for manufacturers in the case of indirect channel usage but diminishes performance in the case of direct channel usage. The authors observe converse effects for centralization and information exchange: centralization and information exchange enhance outcomes of direct channel usage but diminish outcomes of indirect channel usage. The focal managerial implication is that managers must align the design of their multichannel sales systems with effective governance mechanisms.

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Section: Hypothesis Development From a Contingent Alignment Perspectivementioning

confidence: 60%

Section: Hypothesis Development From a Contingent Alignment Perspectivementioning

confidence: 99%

Section: Hypothesis Development From a Contingent Alignment Perspectivementioning

confidence: 99%

mentioning

confidence: 99%

See 2 more Smart Citations

Design and Governance of Multichannel Sales Systems: Financial Performance Consequences in Business-to-Business Markets

Homburg

Vomberg²,

Muehlhaeuser³

2020

Journal of Marketing Research

View full text Add to dashboard Cite

show abstract

“…Nevertheless, this perspective suggests the distributor may sometimes behave in its own self-interest rather than that of the manufacturer (see for example Zeng, Chen, Dong, & Zheng, 2015). The reasons are explained by certain activities that demand investments and efforts, and are not perceived as useful or worthwhile by the distributor.…”

Section: Performance Monitoringmentioning

confidence: 99%

The Relationship between Manufacturer and Distributors: Knowledge Transfer and Performance

Redaelli

Paiva

Teixeira

2015

BAR, Braz. Adm. Rev.

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This study explored the relationship between knowledge transfer from manufacturer to distributor. The research question is related to knowledge transfer from the manufacturer to distributor and potential improvement in the performance of the last. This issue is important for companies that are expanding their markets. A survey was conducted in business units that belong to the transport equipment sector. The study's sample comprised 199 companies. Measuring instrument followed a rigorous sequence of methodological procedures. Measurements were validated by confirmatory factor analysis, and hypotheses were tested using structural equation modeling. Results suggested positive effects of the manufacturer's performance monitoring and knowledge transfer on the distributor's performance. By having formal and informal mechanisms to follow distributor activities, it is possible to identify operational activities performed by the manufacturer that might improve distributor performance.

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Coopetition for innovation in R&D consortia: Moderating roles of size disparity and formal interaction

Yang

2020

Asia Pac J Manag

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Understanding distributor opportunism in a horizontal network

Cited by 32 publications

References 138 publications

Design and Governance of Multichannel Sales Systems: Financial Performance Consequences in Business-to-Business Markets

Design and Governance of Multichannel Sales Systems: Financial Performance Consequences in Business-to-Business Markets

The Relationship between Manufacturer and Distributors: Knowledge Transfer and Performance

Coopetition for innovation in R&D consortia: Moderating roles of size disparity and formal interaction

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