Dealing with institutional distances in international marketing channels: Governance strategies that engender legitimacy and efficiency

Journal of Marketing

Volumn 76, Issue 3, 2012, Pages 41-55

  Yang, Zhilin ^a   Su, Chenting ^a   Fam, Kim Shyan ^b  

^a CITY UNIVERSITY OF HONG KONG   (Hong Kong)

^b VICTORIA UNIVERSITY OF WELLINGTON   (New Zealand)

Author keywords

Contract customization; Firm performance; Institutional distance; Legitimacy pressure; Market ambiguity; Relational governance

Indexed keywords

EID: 84861919317     PISSN: 00222429     EISSN: None     Source Type: Journal    
DOI: 10.1509/jm.10.0033     Document Type: Article

References (71)

1. Anderson, Erin (1985), "The Salesperson as Outside Agent or Employee: A Transaction Cost Analysis," Marketing Science, 4 (3), 234-54.
2. Anderson, James C. and David W. Gerbing (1988), "Structural Equation Modeling in Practice: A Review and Recommended Two-Step Approach," Psychological Bulletin, 103 (3), 411-23.
3. - and James A. Narus (1990), "A Model of Distributor Firm and Manufacturer Firm Working Partnerships," Journal of Marketing, 54 (January), 42-58.
4. Argyres, Nicholas and Kyle J. Mayer (2007), "Contracting Design as a Firm Capability: An Integration of Learning and Transaction Cost Perspective," Academy of Management Review, 32 (4), 1060-1077.
5. Bagozzi, Richard P. and Youjae Yi (1988), "On the Evaluation of Structural Equation Models," Journal of the Academy of Marketing Science, 16 (1), 74-94.
6. Beckman, Christine, Pamela Haunschild, and Damon Phillips (2004), "Friends or Strangers? Firm-Specific Uncertainty, Market Uncertainty, and Network Partner Selection," Organization Science, 15 (3), 259-75.
7. Bello, Daniel C. and David I. Gilliland (1997), "The Effect of Output Controls, Process Controls, and Flexibility on Export Channel Performance," Journal of Marketing, 61 (January), 22-38.
8. Bickel, Robert (2007), Multilevel Analysis for Applied Research: It's Just Regression! New York: The Guilford Press.
9. Busenitz, Lowell W., Carolina Gomez, and Jennifer W. Spencer (2000), "Country Institutional Profiles: Unlocking Entrepreneurial Phenomena," Academy of Management Journal, 43 (5), 994-1003.
10. Cannon, Joseph P. and William D. Perreault (1999), "Buyer-Seller Relationships in Business Markets," Journal of Marketing Research, 36 (November), 439-60.
11. Carson, Steve, Anoop Madhok, and Tao Wu (2006), "Uncertainty, Opportunism, and Governance: The Effects of Volatility and Ambiguity on Formal and Relational Contracting," Academy of Management Journal, 49 (5), 1058-1077. (Pubitemid 44787932)
12. Delios, Andrew and Paul W. Beamish (1999), "Ownership Strategy of Japanese Firms: Transactional, Institutional, and Experience Influences," Strategic Management Journal, 20 (10), 915-33. (Pubitemid 129545629)
13. DiMaggio, Paul J. and Walter W. Powell (1991), "Introduction," in The New Institutionalism in Organizational Analysis, Walter W. Powell and Paul J. DiMaggio, eds. Chicago: University of Chicago Press, 1-38.
14. Eden, Lorraine and Stewart R. Miller (2004), "Distance Matters: Liability of Foreignness, Institutional Distance and Ownership Strategy," in Advances in International Management, Michael A. Hitt and Joseph L.C. Cheng, eds. New York: Elsevier, 187-221. (Pubitemid 39753625)
15. Fernández-Alles, María de la Luz, and Ramón Valle-Cabrera (2006), "Reconciling Institutional Theory with Organizational Theories: How Neoinstitutionalism Resolves Five Paradoxes," Journal of Organizational Change, 19 (4), 503-517. (Pubitemid 44086457)
16. Ghemawat, Pankaj (2001), "Distance Still Matters: The Hard Reality of Global Expansion," Harvard Business Review, 79 (8), 137-47.
17. Granovetter, Mark (1985), "Economic Action and Social Structure: The Problem of Embeddendness," American Journal of Sociology, 91 (3), 481-510.
18. Greve, Henrich R. (1996), "Patterns of Competition: The Diffusion of a Market Position in Radio Broadcasting," Administration Science Quarterly, 41 (March), 29-61.
19. Grewal, Rajdeep and Ravi Dharwadkar (2002), "The Role of the Institutional Environment in Marketing Channels," Journal of Marketing, 66 (July), 82-97.
20. Gulati, R. (1995) "Does Familiarity Breed Trust? The Implications of Repeated Ties for Contractual Choice in Alliances," Academy of Management Journal, 38 (1), 85-112.
21. Gundlach, Gregory T. and Patrick E. Murphy (1993), "Ethical and Legal Foundations of Relational Marketing Exchanges," Journal of Marketing, 57 (October), 35-46.
22. Hausman, Jerry A. (1978), "Specification Tests in Econometrics," Econometrica, 46 (6), 1251-72.
23. Heide, Jan B. (1994), "Interorganizational Governance in Marketing Channels," Journal of Marketing, 58 (January), 71-85.
24. - and George John (1992), "Do Norms Matter in Marketing Relationships?" Journal of Marketing, 56 (April), 32-44.
25. - and Kenneth H. Wathne (2006), "Friends, Businesspeople, and Relationship Roles: A Conceptual Framework and a Research Agenda," Journal of Marketing, 70 (July), 90-103. (Pubitemid 44116461)
26. Hofstede, Geert H. (1980), Culture's Consequences: International Differences in Work Related Values. London: Sage Publications.
27. Hoskisson, Robert E., Lorraine Eden, Chung Ming Lau, and Mike Wright (2000), "Strategy in Emerging Economies," Academy of Management Journal, 43 (3), 249-67.
28. Hox, Joop J. (2002), Multilevel Analysis: Techniques and Applications. Mahwah, NJ: Lawrence Erlbaum Associates.
29. Jap, Sandy D. and Shankar Ganesan (2000), "Control Mechanisms and the Relationship Life Cycle: Implications for Safeguarding Specific Investments and Developing Commitment," Journal of Marketing Research, 37 (May), 227-45.
30. John, George and Barton Weitz (1989), "Salesforce Compensation: An Empirical Investigation of Factors Related to Use of Salary Versus Incentive Compensation," Journal of Marketing Research, 26 (February), 1-14.
31. Joskow, Paul L. (1990), "The Performance of Long-Term Contracts: Further Evidence from Coal Markets," RAND Journal of Economics, 21 (2), 251-74.
32. Kogut, Bruce and Harbir Singh (1988), "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, 19 (3), 411-32.
33. Kostova, Tatiana (1997), "Country Institutional Profiles: Concept and Measurement," in Academy of Management Best Paper Proceedings, L.N. Dosier and J.B. Keys, eds. Briarcliff Manor, NY: Academy of Management, 180-84.
34. - and Kendall Roth (2002), "Adoption of an Organizational Practice by Subsidiaries of Multinational Corporations: Institutional and Relational Effects," Academy of Management Journal, 45 (1), 215-33.
35. - and Srilata Zaheer (1999), "Organizational Legitimacy under Conditions of Complexity: The Case of the Multinational Enterprise," Academy of Management Review, 24 (1), 64-81.
36. Kumar, Nirmalya, Louis W. Stern, and James C. Anderson (1993), "Conducting Interorganizational Research Using Key Informants," Academy of Management Journal, 36 (6), 1633-51.
37. Kumar, Rajesh and T.K. Das (2007), "Interpartner Legitimacy in the Alliance Development Process," Journal of Management Studies, 44 (8), 1425-53.
38. Lindell, Michael K. and Christina J. Brandt (2000), "Climate Quality and Climate Consensus as Mediators of the Relationship Between Organizational Antecedents and Outcomes," Journal of Applied Psychology, 85 (3), 331-48.
39. - and David J. Whitney (2001), "Accounting for Common Method Variance in Cross-Sectional Research Designs," Journal of Applied Psychology, 86 (1), 114-21. (Pubitemid 33404733)
40. Luo, Yadong (2002), "Contract, Cooperation, and Performance in International Joint Ventures," Strategic Management Journal, 23 (10), 903-919.
41. - (2005), "Transactional Characteristics, Institutional Environment and Joint Venture Contracts," Journal of International Business Studies, 36 (2), 209-230. (Pubitemid 40622459)
42. Macaulay, Stewart (1963), "Non-Contractual Relations in Business: A Preliminary Study," American Sociological Review, 28 (1), 55-67.
43. Macneil, Ian R. (1980), The New Social Contract: An Inquiry into Modern Contractual Relations. New Haven, CT: Yale University Press.
44. Martinez, Richard J. and M. Tina Dacin (1999), "Efficiency Motives and Normative Forces: Combining Transactions Costs and Institutional Logic," Journal of Management, 25 (1), 75-96.
45. Meziasa, Stephen J., Ya-Ru Chena, Patrice Murphy, Angela Biaggioc, Wiladlak Chuawanleed, Harry Huie, Tetsushi Okumuraf, and Stephanie Starra (2002), "National Cultural Distance as Liability of Foreignness: The Issue of Level of Analysis," Journal of International Management, 8 (4), 407-421.
46. Mohr, Jakki J. and Ravipreet S. Sohi (1995), "Communication Flows in Distribution Channels: Impact on Assessments of Communication Quality and Satisfaction," Journal of Retailing, 71 (4), 393-416.
47. Mooi, Erik A. and Mrinal Ghosh (2010), "Contract Specificity and Its Performance Implications," Journal of Marketing, 74 (March), 105-120.
48. Oliver, Christine (1991), "Strategic Responses to Institutional Processes," Academy of Management Review, 16 (1), 145-79.
49. - (1996), "The Institutional Embeddedness of Economic Activity," in The Embeddedness of Strategy: Advances in Strategic Management, Jane Dutton and Joel Baum, eds. Greenwich, CT: JAI Press, 163-86.
50. Ouchi, William G. (1980), "Markets, Bureaucracies, and Clans," Administrative Science Quarterly, 25 (1), 129-41.
51. Park, Seung Ho and Yadong Luo (2001), "Guanxi and Organizational Dynamics: Organizational Networking in Chinese Firms," Strategic Management Journal, 22 (5), 455-77. (Pubitemid 33608236)
52. Peng, Mike W. (2003), "Institutional Transitions and Strategic Choices," Academy of Management Review, 28 (2), 275-96. (Pubitemid 36446328)
53. Podsakoff, Philip M., Scott B. MacKenzie, Jeong-Yeon Lee, and Nathan P. Podsakoff (2003), "Common Method Biases in Behavioral Research: A Critical Review of the Literature and Recommended Remedies," Journal of Applied Psychology, 88 (5), 879-903. (Pubitemid 37239703)
54. Poppo, Laura and Todd Zenger (2002), "Do Formal Contracts and Relational Governance Function as Substitutes or Complements?" Strategic Management Journal, 23 (8), 707-725.
55. Roberts, Peter W. and Royston Greenwood (1997), "Integrating Transaction Cost and Institutional Theories: Toward a Constrained-Efficiency Framework for Understanding Organizational Design Adoption," Academy of Management Review, 22 (2), 346-73.
56. Scott, W. Richard (1995), Institutions and Organizations. Thousand Oaks, CA: Sage Publications.
57. - (2008), Institutions and Organizations: Ideas and Interests. Thousand Oaks, CA: Sage Publications.
58. Selznick, Philip (1984), Leadership in Administration: A Sociological Interpretation. Berkeley: University of California Press.
59. Straub, Detmar, Karen Loch, Roberto Evaristo, Elena Karahanna, and Mark Srite (2002), "Toward a Theory-Based Measurement of Culture," Journal of Global Information Management, 10 (1), 13-23. (Pubitemid 33363972)
60. Su, Chenting and James E. Littlefield (2001), "Entering Guanxi: A Business Ethical Dilemma in Mainland China?" Journal of Business Ethics, 33 (3), 199-210. (Pubitemid 33391361)
61. Suchman, Mark C. (1995), "Managing Legitimacy: Strategic and Institutional Approaches," Academy of Management Review, 20 (3), 571-610.
62. Van Bruggen, Gerrit H., Gary L. Lilien, and Manish Kacker (2002), "Informants in Organizational Marketing Research: Why Use Multiple Informants and How to Aggregate Responses," Journal of Marketing Research, 39 (November), 469-78.
63. Wathne, Kenneth H. and Jan B. Heide (2000), "Opportunism in Interfirm Relationships: Forms, Outcomes, and Solutions," Journal of Marketing, 64 (October), 36-51.
64. Williamson, Oliver E. (1985), The Economic Institutions of Capitalism: Firms, Markets, and Relational Contracting. New York: The Free Press.
65. - (1989), "Transaction Cost Economics," in Handbook of Industrial Organization, Vol. 1, Richard Schmalensee and Robert Willig, eds. Amsterdam: North-Holland, 135-82.
66. - (1991), "Comparative Economic Organization: The Analysis of Discrete Structural Alternatives," Administrative Science Quarterly, 36 (2), 269-96.
67. Wooldridge, Jeffery M. (2003), Introductory Econometrics: A Modern Approach, 2d ed. Mason, OH: Thomson South-Western.
68. Xu, Dean and Oded Shenkar (2002), "Institutional Distance and the Multinational Enterprise," Academy of Management Review, 27 (4), 608-618.
69. Zaheer, Akbar and N. Venkatraman (1995), "Relational Governance as an Interorganizational Strategy: An Empirical Test of the Role of Trust in Economic Exchange," Strategic Management Journal, 16 (5), 373-92.
70. Zaheer, Srilata (1995), "Overcoming the Liability of Foreignness," Academy of Management Journal, 38 (2), 341-63.
71. Zhou, Kevin Zheng, Laura Poppo, and Zhilin Yang (2008), "Relational Ties or Customized Contracts? An Examination of Alternative Governance Choices in China," Journal of International Business Studies, 39 (3), 526-34.