Transaction costs and capability factors in dual or indirect distribution channel selection: An empirical analysis of Japanese manufacturers

Research output: Contribution to journalArticle

Abstract

This study focuses on manufacturers' selection of dual or indirect channels. Although several previous studies based on transaction cost theory investigate transaction cost factors in choosing dual or indirect channels mainly in the United States, this study examines transaction costs and capability factors for such a choice in Japan. The relationships are tested with survey data from Japanese industrial goods manufacturers (n = 429). Compared to previous studies, this study presents three important findings. First, unlike previous studies, two transaction cost factors—asset specificity and behavioral uncertainty—do not exhibit the relationships predicted by transaction cost theory. Interestingly, asset specificity is negatively related to the use of dual channels. Second, two capability factors not assessed in prior studies—market orientation capabilities and differences in channel members' capabilities—exhibit significant positive relationships with the selection of dual channels. Third, capability factors are found to be more important than transaction cost factors in explaining dual or indirect channels in Japan. This study also discusses the influence of the Japanese channel context on the results.

Original languageEnglish
JournalIndustrial Marketing Management
DOIs
Publication statusAccepted/In press - 2018 Jan 1

Fingerprint

Empirical analysis
Factors
Transaction costs
Distribution channels
Transaction cost theory
Dual-channel
Japan
Survey data
Asset specificity
Specificity

Keywords

  • Capabilities
  • Dual distribution
  • Japan
  • Transaction costs

ASJC Scopus subject areas

  • Marketing

Cite this

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title = "Transaction costs and capability factors in dual or indirect distribution channel selection: An empirical analysis of Japanese manufacturers",
abstract = "This study focuses on manufacturers' selection of dual or indirect channels. Although several previous studies based on transaction cost theory investigate transaction cost factors in choosing dual or indirect channels mainly in the United States, this study examines transaction costs and capability factors for such a choice in Japan. The relationships are tested with survey data from Japanese industrial goods manufacturers (n = 429). Compared to previous studies, this study presents three important findings. First, unlike previous studies, two transaction cost factors—asset specificity and behavioral uncertainty—do not exhibit the relationships predicted by transaction cost theory. Interestingly, asset specificity is negatively related to the use of dual channels. Second, two capability factors not assessed in prior studies—market orientation capabilities and differences in channel members' capabilities—exhibit significant positive relationships with the selection of dual channels. Third, capability factors are found to be more important than transaction cost factors in explaining dual or indirect channels in Japan. This study also discusses the influence of the Japanese channel context on the results.",
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AB - This study focuses on manufacturers' selection of dual or indirect channels. Although several previous studies based on transaction cost theory investigate transaction cost factors in choosing dual or indirect channels mainly in the United States, this study examines transaction costs and capability factors for such a choice in Japan. The relationships are tested with survey data from Japanese industrial goods manufacturers (n = 429). Compared to previous studies, this study presents three important findings. First, unlike previous studies, two transaction cost factors—asset specificity and behavioral uncertainty—do not exhibit the relationships predicted by transaction cost theory. Interestingly, asset specificity is negatively related to the use of dual channels. Second, two capability factors not assessed in prior studies—market orientation capabilities and differences in channel members' capabilities—exhibit significant positive relationships with the selection of dual channels. Third, capability factors are found to be more important than transaction cost factors in explaining dual or indirect channels in Japan. This study also discusses the influence of the Japanese channel context on the results.

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