Journal of International Business Studies

, Volume 28, Issue 1, pp 145–175 | Cite as

Antecedents and Performance Implications of Channel Integration in Foreign Markets

  • Preet S. Aulakh
  • Masaaki Kotabe
Article

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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Copyright information

© Academy of International Business 1997

Authors and Affiliations

  • Preet S. Aulakh
    • 1
  • Masaaki Kotabe
    • 2
  1. 1.Michigan State University
  2. 2.The University of Texas at Austin and New York University

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