ANTECEDENTS AND PERFORMANCE IMPLICATIONS OF CHANNEL INTEGRATION IN FOREIGN-MARKETS

This study enhances our understanding of channel integration in foreig n 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 an d strategic factors that influence channel choices in foreign markets, Empirical results based on a survey of U.S. firms support the combine d relevance of these factors in predicting the degree of channel integ ration, Second, the study empirically examines the performance consequ ences of channel integration, The results suggest that, although the d egree of channel integration does not have a direct influence on chann el performance, a contingency model based on the fit between the conte xtual factors and the actual channel choice is significantly related t o performance in foreign markets.