Export channel dynamics: an empirical investigation

Gabriel R.G. Benito, Torben Pedersen and Bent Petersen
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Torben Pedersen: Department of International Economics and Management, Copenhagen Business School, Frederiksberg DK-2000, Denmark, Postal: Department of International Economics and Management, Copenhagen Business School, Frederiksberg DK-2000, Denmark
Bent Petersen: Department of International Economics and Management, Copenhagen Business School, Frederiksberg DK-2000, Denmark, Postal: Department of International Economics and Management, Copenhagen Business School, Frederiksberg DK-2000, Denmark

Managerial and Decision Economics, 2005, vol. 26, issue 3, pages 159-173

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). Copyright © 2005 John Wiley & Sons, Ltd.

Date: 2005
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