Daniel C. Bello

Two sides to attitudinal commitment: The effect of calculative and loyalty commitment on enforcement mechanisms in distribution channels

Previous conceptualizations of attitudinal commitment are extended by considering two very different components of a manufacturers attachment to an independent channel intermediary. Relying on commitment theory, a model is developed that describes how attitudinal commitment may reside in either the instrumental or the social strain of a manufacturers relationship with its distributor. For each strain, the developmental role played by key facets of the channel setting—relative dependence, pledges, and trust—are shown. Furthermore, the nature of the attachment bond is posited to motivate very different governance mechanisms as the distribution agreement is enforced by either social or contractual means. Empirical support for the model demonstrates that an expanded view of attitudinal commitment is important in understanding the complex nature of attachment in channel relationships.

Drivers and Performance Outcomes of Trust in International Strategic Alliances: The Role of Organizational Complexity

Trust between partners has become a key construct in interfirm relationship management. However, elucidating the precise nature of the trust-performance link in international strategic alliances remains an important theoretical and empirical challenge for management scholars. Discordant findings evident in existing alliance research raise concerns that interpartner trust does not always enhance venture performance. To investigate this issue, we build and test a theoretical framework that integrates different perspectives of alliance functioning by focusing on the social and bureaucratic forces critical to cooperative processes. The model (1) identifies organizational complexity mechanisms underlying the development of trust in international strategic alliances, (2) points to alliance size as an important factor that conditions the trust-performance relationship, (3) incorporates a new, third-order conceptualization of interpartner trust in alliances, and (4) suggests a theory-based multidimensional assessment of alliance performance. Based on data collected through personal interviews in 177 international strategic alliances, the results suggest that, while interpartner trust is positively associated with alliance performance, this relationship becomes stronger when alliance size declines. We find that both distributive fairness and partner similarity are central to the achievement of a trusting alliance partnership. Managerial insights into developing successful trust-based international alliance exchanges are offered, and fruitful avenues of research are discussed.

The antecedents and performance consequences of relationalism in export distribution channels

Abstract Since working with foreign-based intermediaries is difficult, manufacturers that export through nonintegrated channels often experience poor export performance. However, governance theory suggests that as these cross-border relationships shift away from arms-length trading arrangements and toward highly relational partnerships, performance can improve. In particular, the flexibility, solidarity, and information exchange that characterize close working relationships lead to the efficient coordination of channel tasks. In addition to evaluating the performance consequences of relationalism, this research also identifies the antecedent channel conditions that play a developmental role in these relational exchanges. A model of relationalism antecedents and consequences is tested on a sample of 290 manufacturers that export through foreign distributors. Support is found for the performance-enhancing qualities of relationalism and the impact of the export context on the development of relational exchange in exporting.

Adoption of electronic commerce tools in business procurement: enhanced buying center structure and processes

Modern procurement is being shifted from paper‐based, people‐intensive buying systems toward electronic‐based purchase procedures that rely on Internet communications and Web‐enhanced buying tools. Develops a typology of e‐commerce tools that have come to characterize cutting‐edge industrial procurement. E‐commerce aspects of purchasing are organized into communication and transaction tools that encompass both internal and external buying activities. Further, a model of the impact of e‐commerce on the structure and processes of an organization’s buying center is developed. The impact of the changing buying center on procurement outcomes in terms of efficiency and effectiveness is also analyzed. Finally, implications for business‐to‐business marketers and researchers are discussed.

Export channel design: The use of foreign distributors and agents

Because many manufacturers are unable to integrate vertically into global distribution, the nonintegrated market entry modes of foreign distributor and agent are frequently used. Unfortunately, little is known about choosing efficiently between distributor and agent because research has only partially examined the importance of transaction and production costs in determining institutional arrangements. To specify efficient channel design, this article develops and tests hypotheses linking the characteristics of export exchange to the cost-minimizing mode of export channel governance. Based on a sample of 269 manufacturers, results suggest that market diversity, type of transaction-specific asset, and production cost economies all affect the choice between foreign-based agents and distributors. The article concludes with the implications of these results for export management and future export research.

Industrial buyer behavior at trade shows: Implications for selling effectiveness

Abstract Although trade shows are a major marketing tool, little research has examined how to capitalize on the mediums sales potential. This article analyzes the buying behavior of trade show attendees in order to devise an approach to selling that is best adapted to the unique show environment. The industrial buying literature is used to frame hypotheses which test aspects of attendee behavior that underlie and motivate effective selling strategies for trade shows.

Improving trade show effectiveness by analyzing attendees

Abstract Trade shows are chaotic selling environments. Many firms are disappointed with their sales results from shows. In this article, selling at shows is shown to be more effective when it is based on an analysis of the job roles of attendees. While show audiences comprise people filling many roles, salespeople are more productive when they target individuals who participate in buying centers at trade shows. Using data collected from a large industrial equipment show, this research demonstrates the importance for show selling of analyzing the number and composition of job roles in the attendance parties of buying firms. Suggestions are provided to help exhibiting firms improve selling by better adapting their sales resources to the needs of different job roles that comprise the at-show buying center.

Exporting at industrial trade shows

Abstract Although many foreign buyers attend American trade shows, domestic exhibitors often overlook export opportunities because of the numerous difficulties involved in foreign sales. This article examines the problems encountered by exhibitors as they attempt to export at trade shows. Based on an analysis of export and trade show literatures, hypotheses regarding the types of difficulties exhibitors experience at shows are developed. Data collected from over 200 exhibitors at a major industrial trade show are used to test the hypotheses. The results suggest that the ability to sell to foreign attendees is associated with two internal characteristics of the exhibiting firm: its commitment to exporting and its show staffing practices.

Does Accommodating a Self-Serving Partner in an International Marketing Alliance Pay Off?

This research examines a firms performance in an international marketing alliance when it responds to a self-serving partners exploitive behavior with accommodation, a cooperative response motivated by the firms commitment to the venture. The authors theorize that a wronged firms payoff from accommodation depends on its approach to monitoring, either employing overt surveillance or relying on its partners self-control. Overt surveillance is believed to undermine accommodations ability to convince a selfish partner that cooperation is beneficial and not inconsistent with its self-interest. In contrast, because no or low monitoring is a relational approach to evaluation, it tends to reinforce accommodation, persuading a competitive partner to reciprocate cooperatively. Data collected from 174 international marketing alliances support the authors’ prediction that under low monitoring, accommodation is positively associated with performance in the alliance. Unexpectedly, under high monitoring, performance is greatest under both low and high accommodation. An explanation may lie in accommodation theorys notion that as accommodation increases, a selfish partner transitions from competition to cooperation, ceasing to exploit accommodation and upturning performance.

Collaborative Relationships for Component Development: The Role of Strategic Issues, Production Costs, and Transaction Costs

Abstract Original equipment manufacturers (OEMs) increasingly rely on specialist vendors to develop the highly complex component parts needed for today’s sophisticated industrial end products. However, rather than working closely together on the component development tasks, the OEM and vendor often perform their respective development activities autonomously. This article examines the role played by strategic and cost factors in determining whether component development is conducted as an arm’s-length arrangement or as a highly collaborative partnership. An empirical test of 207 OEM–vendor relationships indicates the primacy of production and transaction costs in accounting for the shift to collaborative development of new industrial components. The article concludes by drawing implications for researchers as well as for managers responsible for developing components with an outside partner.