THE EFFECT OF OUTPUT CONTROLS, PROCESS-CONTROLS, AND FLEXIBILITY ON EXPORT CHANNEL PERFORMANCE

The authors examine international distribution channels in terms of th e coordination processes that govern the relationship between export m anufacturers and their foreign-based distributors. Although this relat ionship is mediated by market prices, manufacturers can enhance perfor mance by relying on certain nonmarket forms of governance-control and flexibility-to manage their overseas channel better. The authors devel op a model that examines both the contextual antecedents and the perfo rmance consequences of these nonmarket governance forms. One form of c ontrols-output control-along with flexibility, is shown to enhance exp ort channel performance, but another control form-process control-has no performance effect.