Channel strategy adaptation

Using transaction cost theory, considerable research in marketing has focused on the conditions under which firms would use direct or vertically integrated versus indirect or arms length channels of distribution. Data from the field, however, indicate that channel configurations are more varied and complex, with multiple channels and composite channels being just as common as direct and indirect channels. In an attempt to explain this variety, this paper revisits the influence on channel structure of another contending variable, namely environmental complexity. We explore the role and influence of its two components, namely volatility (stability) and heterogeneity (homogeneity). Our study of 139 firms in the healthcare industry reveals that firms facing highly volatile and customer concentrated environments tend to use direct channels, and firms facing highly stable and heterogeneous environments tend to use distribution channels. Intermediate forms such as composite channels and multiple channels were favored by firms facing combinations of the environment where the intensity of one component was high and the other low. In general, firms seem to first choose a business strategy to address their external environment, and then choose a channel strategy to support that business strategy. Firms did not always adapt by making structural changes. Under certain conditions, they simply reallocated channel functions within the same structure, thus virtually deriving all the benefits of a new structure without having to create one.marketing; channels of distribution;

Channel strategy: Formulation and adaptation

Inspired by open systems theories like the structural contingency theory (Lawrence and Lorsch 1967), population ecology theory (Hannan and Freeman 1977), and resource dependence theory (Pfeffer and Salancik 1978), several marketing scholars have investigated how channels adapt and organize themselves to cope with their environments. Curiously, however, the implication of such adaptive behaviour (i.e., the better adapted firms are more profitable) has not been investigated in the marketing literature. This paper aims to probe that question. Moreover, unlike previous marketing studies, we articulate the manufacturer's rather than the distributor's point-of-view, because channel strategy decisions are usually in the manufacturer's domain. We scrutinize firms' adaptive responses from a channel structure and channel task perspective. Results show that the better adapted firms deliver superior performance, and that the adaptive responses often occur subtly at the specific channel task level even when the channel structure itself may appear seemingly unaltered.structural contingency theory; population ecology theory; resource dependence theory;

THE LIMITS OF NONPROFIT IMPACT: A Contingency Framework For Measuring Social Performance

Leaders of organizations in the social sector are under growing pressure to demonstrate their impacts on pressing societal problems such as global poverty. We review the debates around performance and impact, drawing on three literatures: strategic philanthropy, nonprofit management, and international development. We then develop a contingency framework for measuring results, suggesting that some organizations should measure long-term impacts, while others should focus on shorter-term outputs and outcomes. In closing, we discuss the implications of our analysis for future research on performance management. Key words: performance measurement, impact, nonprofit management, social enterprise, philanthropy, accountability, management control systems

Reply

Reply to commentaries (Blitzer, H. L. 1987. Commentary. 175–176 and Koon, R. E. 1987. Commentary. 177–178.) to author's paper (Rangan, V. K. 1987. The channel design decision: A model and an application. 156–174.).

Position and velocity measurement by optical shaft encoders

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