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Channel Intermediaries and Manufacturer Performance: An Exploratory Investigation in an Emerging Market

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  • Sharma, Amalesh
  • Cosguner, Koray
  • Sharma, Tarun K.
  • Motiani, Manoj
Abstract
Channel intermediaries (hereafter, intermediaries) are among the most critical elements of any supply chain as the bulk of manufacturing output is transported through them. However, we have a limited understanding of the approach a manufacturer should take to achieve the dual goal of increasing profitability and intermediary satisfaction. To provide manufacturers with practical strategies to boost their performance and their intermediaries’ satisfaction, we rely on three related studies. In Study 1, through interviews with managers and intermediaries, we find that distribution alignment across intermediary, market, and product types may be a practical strategy for both manufacturers and intermediaries. In Study 2, by using a robust empirical methodology with data from a construction product manufacturer operating in an emerging market, we find that various combinations of intermediary, market, and product types affect the manufacturer’s performance differently. Accordingly, through a supply-side examination, we quantify the revenue impact of reallocating the studied manufacturer’s retail distribution resources among different intermediary-, market-, and product-type combinations. In Study 3, through a field implementation, we find that our recommended intermediary alignment strategy from Study 2 substantially boosts both the manufacturer’s performance (by fourteen percent in revenue and thirteen percent in profit) and intermediaries’ satisfaction (by 7.71%). Thus, with our qualitative, empirical, and field studies, we contribute to the existing research in channel management, emerging market retailing, retail distribution, and marketing strategy.

Suggested Citation

  • Sharma, Amalesh & Cosguner, Koray & Sharma, Tarun K. & Motiani, Manoj, 2021. "Channel Intermediaries and Manufacturer Performance: An Exploratory Investigation in an Emerging Market," Journal of Retailing, Elsevier, vol. 97(4), pages 639-657.
    • Handle: RePEc:eee:jouret:v:97:y:2021:i:4:p:639-657
    DOI: 10.1016/j.jretai.2020.09.005
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    References listed on IDEAS

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    Cited by:

    1. Amalesh Sharma & Sourav Bikash Borah & Aditya Christopher Moses, 2024. "Achieving social and economic sustainability through innovations in transformative services: A case of healthcare organizations in an emerging market," Journal of the Academy of Marketing Science, Springer, vol. 52(5), pages 1366-1390, October.
    2. Sani Majumder & Izabela Nielsen & Susanta Maity & Subrata Saha, 2022. "Effect of Product Distribution Structures and Government Subsidy Measures on Product Quality and Consumption under Competition," Sustainability, MDPI, vol. 14(6), pages 1-24, March.

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