Abstract
Keywords
Introduction
Study context
Contrasting relational vs. transactional exchanges in channel design
Towards a contingency explanation of exchange modes
A classification framework of contingencies
Methodology
Results
Research propositions
Conclusions
Limitations and directions for future research
Acknowledgements
References
ABSTRACT
This study investigates how small, resource-constrained firms identify international marketing strategies for perishable products. Although international marketing of perishable products poses challenges for the exporter, many small companies manage to survive and thrive on an international business arena. Over the past decades, there has been a growing interest in how small firms design their international marketing channels. However, little is known about the conditions leading to the choice of a particular exchange modality. Drawing from the contingency framework, we investigate the role of firm-specific and industry-related factors in the choice of exchange mode among resource-constrained exporters. Based on insights from the Norwegian seafood industry, we introduce a contingency framework and develop a typology of exchange modalities. We suggest that resourceconstrained exporters are inclined to engage in a succession of transactional exchanges. We offer propositions on the choice among alternative exchange modalities contingent upon firm and industry factors.
Introduction
The importance of commercial distribution and the design of international marketing channels for companies – small or large – have been addressed by scholars for over a half-century (Hoppner & Griffith, 2015; Morgan et al., 2004). Finding efficient and apt marketing channels is critical for the success of the producing company in order to reach its target customers in the best possible way (Watson et al., 2015). Conventional knowledge seems to rely, by and large, on the evidence from larger companies and their channel strategies. We raise the question of whether it applies to small, resource-constrained companies oriented towards international markets. Compared to large international firms, small exporters are typically constrained by scarce financial and human resources and often more limited foreign market expertise (Brouthers et al., 2009; Majocchi & Zucchella, 2003). Unlike larger rivals, small firms lack abundant and deeply rooted administrative heritage (Collis, 1991; Knight & Cavusgil, 2004), forcing them to contend with limited strategic tools. However, limited administrative heritage allows them to develop greater agility and flexibility in international markets (Knight & Cavusgil, 2004).