Maggie Chuoyan Dong

Effective Distributor Governance in Emerging Markets: The Salience of Distributor Role, Relationship Stages, and Market Uncertainty

Effective governance of distributors represents a critical success factor for firms operating in emerging markets such as China. To increase understanding of this issue, the authors adopt a role theory framework to delineate the effect of fit between governance strategies and distributor role orientations on channel outcomes. They also examine the way two contingency factors (relationship stages and market uncertainty) may moderate the impact of this fit. Using a four-industry survey of distributors in China, the authors confirm the salience of strategic fit between the manufacturers governance strategy and the distributors role orientation (in short, governance fit), in support of propositions postulated in recent channel governance research. The findings also indicate that the effects of this governance fit are dependent on the stages of the channel relationship (buildup versus mature) but not market uncertainty. This study extends the current literature and suggests the need for finer, phase-oriented dynamic governance strategies in the Chinese market.

Do business and political ties differ in cultivating marketing channels for foreign and local firms in China

Despite the prominence of social ties in emerging economies, it remains unclear whether and how social ties matter in cultivating marketing channels for both local and foreign firms in China. Moreover, few studies have explicitly distinguished and examined the roles of business versus political ties. Drawing on the resource-based view and social network theory, the authors propose and test the moderating effects of political ties and business ties on channel capability–performance relationships. The findings from a survey of 342 firms indicate that the value of channel capability is conditional on political and business ties, but in opposite directions: business ties impede and political ties strengthen the effect of channel capability on firm performance. Furthermore, the moderating role of social ties is stronger for local, nonleading firms than for foreign, leading firms.

Observer Effects of Punishment in a Distribution Network

In a distribution network, a punishment event not only affects the disciplined distributor but also changes the attitudes and behaviors of others in the network (i.e., observers). By moving beyond a dyadic view of punishment, this article considers the effects of punishment on observers and integrates insights from social learning, fairness heuristic, and social network theories. The resulting framework of the observer effects of punishment in a distribution network, empirically tested with a survey in China, reveals two mechanisms through which punishment leads to reduced observer opportunism: (1) a direct deterrence effect and (2) a trust-building process. Moreover, two information-related constructs moderate the observer effects differently. The disciplined distributors relational embeddedness, which motivates greater information flow to observers, aggravates the problem of information asymmetry against the manufacturer, making punishment less deterrent for observers. In contrast, the manufacturers monitoring capability, which reduces information asymmetry, strengthens observer effects. The authors discuss both theoretical and managerial implications of using punishment to achieve collaboration from a wide network of channel members.

Conflict resolution in Chinese family purchase decisions: The impact of changing female roles and marriage duration

Purpose – The purpose of this article is to investigate the impact of Chinese womens changing roles (traditional and modern) and perceived marital happiness on their adoption of different conflict resolution strategies in family purchase decision making (FPDM). It also explores how the relationships vary for women whose marriages have short and long durations.Design/methodology/approach – The paper is framed by and builds on literature on conflict resolution strategies and female role orientation (FRO) in FPDM. Data for this study come from a survey with 735 married Chinese women.Findings – The paper demonstrates that traditional and modern FRO have differential effects on the adoption of conflict resolution strategies, and the relationships are significantly moderated by marriage duration.Research limitations/implications – It sheds light on the changing female roles and marital happiness on conflict resolution in FPDM in China, a society with a centuries‐old traditional culture as well as rapid develop...

The Use of Accommodation in Buyer–Seller Relationships: Encouraging or Controlling Opportunism in Business Markets Middle-grounds

ABSTRACT Purpose: In the past decades, marketing researchers have explored different strategies to control opportunism in buyer–seller relationships. Accommodation, the cooperative response to partners’ exploitive behavior in exchange relationships, has received increasing attention from research on interfirm relationships. However, less is known about whether accommodation is an effective response strategy for controlling opportunism. Drawing on the self-enforcing agreement literature, this article focuses on exploring (1) what drives a firm’s accommodation response to its partner’s exploitive behavior, (2) how a firm’s accommodation helps govern its exchange partner’s opportunistic behavior, and (3) whether monitoring magnifies or buffers the effect of accommodation on the exchange partners’ opportunism. Methodology: The survey data were collected from 173 seller-firms in Guangdong, Shanghai, Beijing, Wuhan, and Zhengzhou, representing the south, east, north, and middle regions of China. The initial questionnaires were distributed mainly by mail. By assessing the nonresponse bias and the potential bias of early and late responses, we detected no significant differences, implying that the aforementioned biases are not a concern. Because PLS can readily model both formative and reflective constructs, and accommodation is a formative construct, we deployed the SmartPLS software program to test our model. Findings: This article enables a deeper understanding of accommodation as a response strategy in buyer–seller relationships. The data analysis offers supportive evidence that a firm’s level of accommodation is positively related to two exchange attributes: joint-specific investments and observability of the exchanges. Accommodation, as a cooperative response strategy, curtails opportunism in buyer–seller relationships, and such a curtailing role is magnified when accompanied with monitoring. Originality/value/contribution: The authors develop a framework to examine previously untested relationships, which suggest accommodation is a cooperative response strategy to mitigate opportunism. We also contribute by exploring the antecedents of accommodation from the tangible transaction attributes perspective. Specifically, two exchange attributes, joint-specific investments and observability, can explain the emergence of accommodation. In addition, we examine the combined effect of competitive response strategies and cooperative response strategies on controlling partner opportunism. That is, competitive response strategies (i.e., monitoring) strengthen the governing effect of cooperative response strategies (i.e., accommodation).