Effects Of Supplier Market Orientation On Distribution Market Orientation And Channel Relationship: The Distributor Perspective-T Company As An Example

• Main Authors: Chung Chun-chieh, 鍾俊傑
• Other Authors: Pan Ming-chuan
• Format: Others
• Language: en_US
• Published: 1999
• Online Access: http://ndltd.ncl.edu.tw/handle/30786980503391872279

碩士 === 大同工學院 === 事業經營研究所 === 87 === Global competition and maturing domestic markets are creating increasingly competitive conditions for channel partners. These competitive conditions have increased tensions between the channel partners. The adoption of market-oriented behavior is a viable strategy to ease the tensions between the channel partners. To date, research incorporating the market-orientation construct has indicated that market-orientated behavior have positive effects on profitability (e.g. Ruekert1992; Slater and Narver 1994), salesperson orientations (Siguaw, Brown, and Widing 1994), and employee attitudes (Jaworski and Kohli 1993). Wonderful relationship has been said to be largely the management of long-term channel relationship between supplier and distributor; that is, understanding the interactions between suppliers and distributors has been considered to be of importance to managers. Today corporations have come to believe that it is worthwhile to maintain the relationships with channel partners. Thereupon, in recent years some researches about the relationship formed by supplier and distributor has gradually earned attention. Judy A. Siguaw, Penny M. Simpson and Thomas L. Baker (1998) develop model of likely effects and empirical examine the consequences of a supplier’s market orientation on the distributor’s market orientation and other channel relationship factors. Results indicate that a supplier’s market-oriented behaviors directly or indirectly affect all the channel relationship factors examined from the distributor’s perspective, especially the distributor’s market orientation, trust, cooperative norms, and satisfaction with financial performance. Good channel relationship is needed for both supplier and distributor to continue to be profitable and to expand. Therefore, it is necessary to maintain a long-term channel relationship between supplier and distributor, and to understand the interactions between suppliers and distributors. Although there have been some studies researching these topics on some foreign company, there are few studies about the company in Taiwan. Therefore, in this studying we take the T Company as an example to research whether the T Company’s market orientation impacts its distributor’s market orientation and channel relationship factors. In this thesis, we have twelve hypotheses: H1: The greater the supplier''s market orientation, the greater the distributor''s market orientation. H2: The greater the supplier''s market orientation, the greater the distributor''s trust in the supplier. H3: The greater the supplier''s market orientation, the greater the distributor''s perception of cooperative norms in the channel relationship. H4: The greater the supplier''s market orientation, the great the distributor''s commitment to the channel relationship. H5: The greater the distributor''s market orientation, the greater its (a) trust, (b)cooperative norms, and (c) commitment to the supplier. H6: The greater the distributor''s market orientation, the greater its satisfaction with its financial performance. H7: The greater the distributor''s trust in the supplier, the greater its perception of cooperative norms in the channel relationship. H8: The greater the distributor''s trust in the supplier, the greater its commitment to the relationship. H9: The greater the distributor''s perception of cooperative norms in the channel relationship, the greater its commitment to the relationship. H10: The greater the distributor''s trust in the supplier, the greater its satisfaction with its financial performance. H11: The greater the distributor''s perception of cooperative norms in the channel relationship, the greater its satisfaction with its financial performance. H12: The greater the distributor''s commitment to the channel relationship, the greater its satisfaction with its financial performance. This study has the following conclusions: 1. In this case, the T Company’s market orientation does not directly affect its distributors’ market orientation, trust, cooperative norms, and commitment to the relationship. 2. The T Company’s distributor’s market orientation has a positive effect on trust. 3. Furthermore, the two the distributor’s market orientation and trust have a direct effect on the T Company’s distributor’s cooperative norms. 4. These relationship variables — the distributor’s market orientation, trust, and cooperative norms — have a positive effect on the T Company’s distributor’s commitment. 5. And finally, these relationship variables — the distributor’s DMO, trust, cooperative norms, and commitment — have a positive effect on the T Company’s distributor’s satisfaction with its financial performance. In this study, we find that the T Company’s market orientation does not directly affect its distributor’s market orientation. This finding implies two reasons. First, the T Company’s perception of market orientation may be different from its distributor’s perception of market orientation. These distributors may not benchmark their own market-oriented behaviors to those of the T Company. In this case, the T Company may be able to establish the market-orientation norm in distribution channel and influence the way its distributors treat customers through the way the T Company treat the distributors. But the T Company’s market-orientation norms do not have direct effect on the distributor’s market orientation. Second, there may be some other factors between the channel relationship. The effect of these undiscovered factors may affect these channel variables — SMO, DMO, trust, commitment, and cooperative norms - of this study. In a competitive environment, distributors continually seek better partner relationship with alternative suppliers. In this case, the T Company’s market orientation does not have direct effect on distributor commitment. We don’t find the factors between the SMO and the distributor’s commitment to the T Company. We guess that the T Company and its distributors may have some different perceptions, for example on the market orientation. Because the distributor’s commitment to the supplier is an important factor in maintaining the channel relationship, we suggest that the T Company should find out some way to elevate the distributor’s commitment to the T Company. We still have some other important finding. First, the T Company’s distributor’s market orientation has a direct effect on such relationship variables as trust, cooperative norms, and commitment to the T Company. Second, the distributor’s trust directly affects the other two relationship variables — cooperative norms and commitment — and the cooperative norms have an effect on the commitment. On the other hand, the DMO, trust, cooperative norms, and commitment to the T Company have direct effect on the distributor’s satisfaction in the financial aspect. If the T Company want to increase the distributor’s performance on the financial performance, the T Company should consider how to affect these relationship factors, including the DMO, trust, cooperative norms, and commitment as a strategy to improve the supplier-distributor channel relationship.