Abstract
This study enhances our understanding of channel integration in foreign markets on two fronts. First, the eclectic approach to foreign entry mode, proposed by Hill, Hwang and Kim [1990] and Kim and Hwang [1992], is used to examine transaction-specific, organizational capability and strategic factors that influence channel choices in foreign markets. Empirical results based on survey of U.S. firms support the combined relevance of these factors in predicting the degree of channel integration. Second, the study empirically examines the performance consequences of channel integration. The results suggest that, although the degree of channel integration does not have a direct influence on channel performance, a contingency model based on the fit between the contextual factors and the actual channel choice is significantly related to performance in foreign markets.
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*Preet S. Aulakh is Professor of Marketing and International Business at Michigan State University. His research interests include control issues in international business, international alliances and partnerships, entry strategies, and technology licensing. This is his third article in the Journal of International Business Studies. His research has also appeared in journals such as the Journal of Marketing, Journal of International Marketing and Revista de Administração de Empresas, among others.
**Masaaki Kotabe is Professor of Marketing and International Business and Ambassador Edward Clark Centennial Fellow in Business at the University of Texas at Austin. He is currently a visiting professor at New York University. During most of the revision process, he was a visiting professor at Fundação Getúlio Vargas, São Paulo, Brazil, sponsored by Philips do Brasil, and acknowledges support from his colleagues there. His research interests include global sourcing strategies. international alliances and issues related to product and process innovations. His recent publications include Anticompetitive Practices in Japan: Their Impact on the Performance of Foreign Firms (co-authored with Kent W. Wheilier) (Westport, Conn.: Praeger Publishers, 1996). MERCOSUR and Beyond: The Imminent Emergence of the South American Markets (Center for International Business Education and Research. The University of Texas at Austin, 1996). and Marketing Management: Text and Cases (co-authored with Michael R. Czinkota and David Mercer) (Cambridge. Mass.: Blackwell, 1997).
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Aulakh, P., Kotabe, M. Antecedents and Performance Implications of Channel Integration in Foreign Markets. J Int Bus Stud 28, 145–175 (1997). https://doi.org/10.1057/palgrave.jibs.8490096
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DOI: https://doi.org/10.1057/palgrave.jibs.8490096