Gary L. Frazier

Organizing and Managing Channels of Distribution

During the past three decades, tremendous strides have been made in our understanding of how firms should organize and manage their channels of distribution. Still, we have barely touched the surface of all the managerial issues that need to be addressed. A variety of research needs still exist regarding constructs and issues examined in prior channels research. Furthermore, many issues of managerial importance relating to the organization and management of channels of distribution have received no attention in empirical research. The purpose of this article is to provide a perspective on how channels research should proceed in the future to promote the most progress. It is hoped that the article will help to shape the future direction of marketing thought with regard to channels of distribution and its fundamental domain.

The Severity of Contract Enforcement in Interfirm Channel Relationships

Little is known about how channel members react to violations of explicit contracts. The authors develop and test an integrative conceptual framework that focuses on the severity of the enforcement response in channel relationships. The empirical results provide evidence of discerning enforcement practices by channel members, reflecting channel system, network, and dyadic concerns.

Exchange Relationships and Interfirm Power in Channels of Distribution

ConclusionThe article by Weitz and Jap in this volume makes a significant contribution to the marketing literature, as it enhances our understanding of relationship marketing in channels of distribution. Our commentary was designed to elaborate on important issues raised by Weitz and Jap. We hope it generates interest in channel relationships that are in trouble, leads channel researchers to consider alternative channel contexts when formulating and testing theory, and motivates a more open and positive view of interfirm power and its use.

Measurement of distributor commitment in industrial channels of distribution

Abstract From previous research reported in the organizational behavior and marketing channels literatures, three components of distributor commitment are identified, defined, and measured (continuance, behavioral, and affective commitment). The reliability and construct validity of the proposed measures with data collected in a national survey of industrial distributors are evaluated. Empirical results indicate that three different types of measurement scales—facet, composite, and global—have acceptable levels of reliability, convergent validity, and discriminant validity. Each facet scale of distributor commitment has a distinctive nomological link with other channel constructs.

On distributor commitment in industrial channels of distribution: A multicomponent approach

Despite a recent surge of interest in commitment, its conceptual scope and components in channel relationships remain equivocal. The authors suggest continuance, behavior, and affect as three essential components of distributor commitment and hypothesize that each component of commitment has a different set of driving forces. A proposed model was tested with data collected in a national survey of industrial distributors. Estimation results indicate that (a) three suggested components are interrelated, yet distinctive, elements of distributor commitment, and (b) each component of distributor commitment is driven by a different set of driving forces.

The Moderating Influence of Firm Market Power on the Transaction Cost Economics Model: An Empirical Test in a Forward Channel Integration Context

Transaction Cost Economics (TCE) has guided a variety of research on governance in the strategic management literature. An important question arises, however, as to whether the TCE framework is equally appropriate for all types of firms in all business settings. In this paper, we argue that TCE is not and suggest that firms with high market power may be able to lower transaction costs under high asset specificity and uncertainty in non-integrated distribution channels, avoiding the need to utilize highly integrated channels as a result. We test our hypotheses with data collected from 40 manufacturers of electronic and telecommunications products in 109 product-markets in the U.S. The results support our hypothesis that transaction cost factors are better at explaining forward channel integration for firms with low market power than for firms with high market power. Our results indicate that the basic TCE framework must be supplemented by the market power construct to adequately explain forward channel integration decisions.

A typology of distribution channel systems: a contextual approach

The channels literature lacks a classification scheme for channel systems which can provide insights to their development and management. Consideration of the channel context is essential in marketing products or services in foreign markets. Develops a new taxonomy of channel systems based on three channel contextual factors ‐ environmental uncertainty, value‐added in the downstream channel, and replaceability of suppliers ‐ and discusses each cell in terms of the level of interfirm commitment. The new taxonomy shows that the behavioural process varies with the channel context and high commitment between channel members is appropriate only in certain channel contexts.

Advances in Distribution Channel Research

Professional dedication, reflections by Louis P. Bucklin, reflections by Louis W. Stern personal dedication dimensionalizing marketing channel environments, Ravi Singh Achrol using key informants in marketing channels research - a critique and some preliminary guidelines, James R. Brown and Robert F. Lusch structural power in channel relationships, Nermin Eyuboglu et al some fundamental conceptual issues in intrachannel power research, John F. Gaski relational exchange, contracting norms and conflict in industrial exchange, Patrick J. Kaufman and Louis W. Stern coordination in the marketing channel, Kevin M. McNeilly and Frederick A. Russ external influences on channel relationships - lessons from a negotiation lab, Sejo Oh et al a preliminary model of relationship termination in marketing channels, Robert Ping and F. Robert Dwyer horizontal and vertical alliances in industrial marketing channels, Torger Reve power and influence in marketing channel research - observations on the state of the art, Louis W. Stern and Lisa K. Scheer.

Conflict management and outcomes in franchise relationships: : The role of regulation.

Franchise relationships are prone to conflict. To safeguard the rights of individual franchisees, several states have legislated greater franchisor disclosure (registration law) ex ante and/or franchisor “termination for good cause” (relationship law) ex post. The impact of regulatory oversight on franchisor–franchisee conflict, however, remains unclear. Relying on agency theory arguments, the authors first assess the influence of the regulatory context, both by itself and in combination with the franchise ownership structure, on the incidence of litigated conflict. Conditional on litigation, they also predict the impact of franchise regulation on both the parties’ litigation initiation and resolution choices and the resulting outcomes. The authors test the hypotheses using a unique multisource archival database of 411 instances of litigation across 75 franchise systems observed over 17 years. The results indicate that the regulatory context, by itself as well as in combination with the franchise ownership structure, significantly shapes parties’ conflict management choices. The authors also find evidence of a trade-off between prevailing in the particular conflict and achieving franchise system growth objectives.

Manufacturer – Distributor Relationships: A Sellers′ versus Buyers′ Market Perspective

The differences that exist in manufacturer – distributor relationships across diverse markets and countries have been largely ignored in the marketing channels literature. A conceptual framework is built designed to explain how the initiation, implementation, and review of manufacturer – distributor relationships are likely to vary, based on whether such relationships take place in buyers′ markets in developed countries or in sellers′ markets in developing countries. Several cultural and structural dimensions of markets in developing countries also play an important role in the conceptual framework. A comparative channel systems approach is taken and a number of propositions are developed that require empirical testing in the future.