RT Article
T1 The Effect of the Governance Environment on Marketing Channel Behaviors: The Diamond Industries in the U.S., China, and Hong Kong
JF Journal of business ethics
VO 88
IS 3
SP 453
OP 471
A1 Li, Shaomin ca. 20./21. Jh.
A1 Karande, Kiran
A1 Zhou, Dongsheng
A2 Karande, Kiran
A2 Zhou, Dongsheng
LA English
YR 2009
UL https://ixtheo.de/Record/1785635581
AB International differences in how market exchanges are conducted (e.g., the mode of entry, level of ownership, and conflict resolution) have been attributed mainly to national culture and cultural distance. However, the cultural arguments cannot explain why economies/countries with similar cultural backgrounds (e.g., Hong Kong and China) exhibit differences in exchange arrangements. Thus, the cultural arguments provide little strategic guidance to multinational corporations (MNCs) in international marketing. We propose that in addition to culture, the governance environment in a country, namely, the political, economic, and social institutions that facilitate or constrain the choice of governance mechanisms, influences the way organizations conduct market exchanges. This important factor heretofore has been ignored. Specifically, we introduce a typology of rule-based and relation-based governance environment to explain how the environment affects marketing channel behaviors, such as barriers to entry, channel exclusivity, information access, trust, and dispute resolution. We analyze the diamond industry in the rule-based governance environment in the U.S. and in the relation-based governance environment in China, and using the diamond industry in Hong Kong as a validation, to develop theoretical propositions and strategic implications for MNCs.
K1 U.S
K1 Rule-based
K1 relation-based
K1 marketing channel behavior
K1 market exchange
K1 inter-organizational exchange
K1 Hong Kong
K1 governance environment
K1 diamond industry
K1 China
DO 10.1007/s10551-009-0303-x