Export Channel Dynamics: An Empirical Investigation

Posted: 30 May 2005

See all articles by Gabriel R.G. Benito

Gabriel R.G. Benito

BI Norwegian Business School

Torben Pedersen

Copenhagen Business School - Department of Strategic Management and Globalization

Björn Preuss

Copenhagen Business School

Abstract

We investigate the dynamics of export channel arrangements by modelling foreign operation method decisions as the interplay between factors that motivate switches and factors that deter them. Our model extends previous analyses by looking simultaneously at (1) no change of channel arrangement, (2) replacements of foreign intermediaries (within-mode shifts), and (3) integration of the sales function abroad (between-mode shifts). We use a multinomial logit model on longitudinal data from a sample of Danish exporters that had entered foreign markets through intermediaries. The results suggest that the decision to carry out within-mode shifts (i.e. to replace an existing intermediary) is driven by a different set of factors than the decision to switch to another foreign operation mode (i.e. to in-house operations).

Keywords: Export, international distribution, foreign operation methods, vertical integration, switching costs

JEL Classification: F23, L22, M21

Suggested Citation

Garcia Benito, Gabriel Robertstad and Pedersen, Torben and Preuss, Björn, Export Channel Dynamics: An Empirical Investigation. Managerial and Decision Economics, Vol. 26, No. 3, pp. 159-173, 2005. Available at SSRN: https://ssrn.com/abstract=729743

Gabriel Robertstad Garcia Benito (Contact Author)

BI Norwegian Business School ( email )

Nydalsveien 37
Oslo, 0442
Norway

Torben Pedersen

Copenhagen Business School - Department of Strategic Management and Globalization ( email )

Porcelænshaven 24
Frederiksberg, 2000
Denmark
+45 3815 3030 (Phone)
+45 3815 3035 (Fax)

HOME PAGE: http://www.cbs.dk/staff/tp

Björn Preuss

Copenhagen Business School ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

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