The Antecedents and Consequences of Manufacturer-Distributor Cooperation

Journal of the Academy of Marketing Science, Vol. 36, No. 2, pp. 215-233, June 2008

Posted: 28 Feb 2012

See all articles by Michael Song

Michael Song

Barclays Investment Bank

Anthony Di Benedetto

Temple University

Yuzhen Lisa Zhao

Independent

Date Written: 2008

Abstract

We develop a conceptual model for studying the antecedents and consequences of achieved and optimal levels of manufacturer-distributor (M-D) cooperation. We hypothesized that levels of market turbulence, competitive intensity, and the manufacturing firm's strategic type (i.e., prospector, analyzer, or defender) affected the optimal level of M-D cooperation. We also hypothesized that the level of under- and overachieving the optimal levels of cooperation negatively affects firm performance. The conceptual model is tested using empirical data collected from 295 manufacturing firms in the U.S. and validated using data collected from 104 distributors in the U.S. We also collect data from 255 Japanese manufacturing firms and 98 Japanese distributors. The empirical results support the model's hypotheses with only one unexpected finding: in the Japanese sample, overachieving the optimal level of cooperation has a greater negative effect on performance than underachieving. We conclude by discussing theoretical and managerial implications.

Suggested Citation

Song, Michael and Di Benedetto, Anthony and Zhao, Yuzhen Lisa, The Antecedents and Consequences of Manufacturer-Distributor Cooperation (2008). Journal of the Academy of Marketing Science, Vol. 36, No. 2, pp. 215-233, June 2008. Available at SSRN: https://ssrn.com/abstract=2012673

Michael Song

Barclays Investment Bank ( email )

5 The North Colonnade
London, Canary Wharf E14 4BB
United Kingdom

Yuzhen Lisa Zhao

Independent ( email )

Bellevue, 98006

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