Partnering motives and partner selection: Case studies of Finnish distributor relationships in China

ISSN： 0960-0035

Source： International Journal of Physical Distribution & Logistics Management, Vol.36, Iss.6, 2006-07, pp. : 466-478

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Abstract

Purpose ‐ To study the motives for partnership in marketing channels and provide an empirical study on mutual selection between manufacturers and distributors. Design/methodology/approach ‐ The data were collected mainly from the interviews which present the perspectives of both the Finnish manufacturers and Chinese distributors and agents. Findings ‐ Based on the empirical study, the new finding is that task-related and partner-related dimensions in partner selection of international joint ventures also apply to distributor relationship. We argue that a distributor relationship is a product-tied relationship, and product innovation can be used as an approach for performance improvement in distributor relationship. Research limitations/implications ‐ The study consists of four case companies so the result cannot be of general application. Nevertheless, it provides valuable information for further utilization. Practical implications ‐ The study provides empirical evidence of the motives of partnership and mutual selection between manufacturers and distributors in China. The results of the study suggest that distributor relationship management could be improved through product innovation. Originality/value ‐ The paper attempts to fill the gap in available research on the initiative stage of distributor relationship while also providing some perceptions from the distributor side of the process.