A framework for performance evaluation of channel partners in distribution relationships
08 Apr 2016-International Journal of Productivity and Performance Management (Emerald Group Publishing Limited)-Vol. 65, Iss: 4, pp 503-531
TL;DR: The authors developed the measurement scale by the three-stage protocol and established the scale’s reliability, factor structure and validity through the data collected from 252 firm-channel partner dyads across automobile firms in India.
Abstract: Purpose
– The purpose of this paper is to develop a conceptual framework for performance evaluation of channel partners in distribution relationships and develop a scale to measure the proposed dimensions of performance.
Design/methodology/approach
– The proposed framework is built on the theoretical foundations of salesforce control systems and organizational performance. The authors developed the measurement scale by the three-stage protocol and established the scale’s reliability, factor structure and validity through the data collected from 252 firm-channel partner dyads across automobile firms in India.
Findings
– The proposed framework highlights three distinct dimensions of channel partners’ performance, i.e. output performance, the financial/other objective results; activity performance, the activities, behavior and process-compliance levels; and capability performance, the resources and capabilities of channel partners. An 18-item measurement scale is developed to measure the three proposed dimensions of channel partners’ performance.
Research limitations/implications
– The proposed framework conceptualizes the three key dimensions of channel partners’ performance that can assist firms in exercising a focussed approach to performance management in distribution channel relationships and other inter-firm contexts. This study contributes to the legitimacy and further development of research in the area.
Practical implications
– The measurement scale provides valid and reliable items for a rigorous performance analyses of channel partners, both at the individual level as well as at the level of the distribution channel as a whole. These performance analyses have multiple applications, right from managing the day-to-day channel activities to steering the channel strategy.
Originality/value
– The paper presents a multidimensional conceptual framework for performance evaluation of channel partners and provides a suitable instrument for operationalizing future empirical research in the area.
Citations
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TL;DR: In this paper, the authors developed a nuanced framework for evaluating a channel partner's performance in distribution channel relationships, where the latent change score (LCS) model within SEM framework provides mean paired-differences of the relevance ratings for each metrics.
Abstract: Purpose
The purpose of this paper is to develop a nuanced framework for evaluating a channel partner’s performance in distribution channel relationships. Given a channel partner’s task environment characteristics (high/low munificence, dynamism and complexity), the study examines which performance metrics (output, activity or capability) are most relevant for evaluating its performance levels effectively.
Design/methodology/approach
The study adopts self-administered cross-sectional survey-based research design. Matched data were collected from 252 channel partners – manager relationship dyads. The latent change score (LCS) model within SEM framework provides mean paired-differences of the relevance ratings for each metrics. This was used to assess the empirical validity of the hypothesized relationships.
Findings
The study demonstrates the importance of calibrating performance evaluation metrics to a channel partner’s task environment state, made possible by its holistic approach to performance evaluation. Based on an extensive analysis, it shows that no single metric is relevant within all environmental states; rather, it could be dysfunctional, a result that differs from vast majority of the literature.
Research limitations/implications
Investigates individual linkages between task environment dimensions and performance metrics to provide a fuller understanding of these relationships. Also provides a theoretical framework to support further research on the topic.
Practical implications
The study provides managerial guidelines (and extensive graphical analysis) for nuanced and dynamic evaluation of channel partners’ performance that can enable firms to identify and promote their most valuable channel partners and prevent the deterioration of others.
Originality/value
First one to develop and empirically validate a nuanced framework for evaluating performance of exchange partners that operate under diverse task environment states.
6 citations
01 Jan 2019
Abstract: Small Construction Business Owners’ Strategies for Employee Retention by Charles H. Griner, Jr. MS, Troy University, 2006 BBA, University of Mississippi, 1991 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University November 2019 Abstract Thirty-four percent of people in the United States of America work for businesses that employ fewer than 100 people. However, many small business owners lack the strategies necessary to retain their valuable employees. Businesses that fail to retain valuable employees are as much as 28% less efficient. The purpose of this qualitative multiple case study was to explore strategies small construction business owners use to retain their valuable employees. Contingency theory provided the conceptual framework. The participants were three owners of three small businesses in the construction industry located in Mississippi which implemented successful policies and procedures to retain their employees. The data sources for this study were semistructured interviews, financial statements, newspaper articles, websites, and social media. A thematic analysis was used to analyze the data. Three themes morphed to include challenging employees and reward them accordingly, mitigating unplanned turnover, and treating employees and others fairly. Potential implications for positive social change are that increased profits among small business owners may enable them to provide better benefits and pay and incentive increases to their employees. Small business owners with increased profits may also be better equipped to participate in community-based charitable organizations.Thirty-four percent of people in the United States of America work for businesses that employ fewer than 100 people. However, many small business owners lack the strategies necessary to retain their valuable employees. Businesses that fail to retain valuable employees are as much as 28% less efficient. The purpose of this qualitative multiple case study was to explore strategies small construction business owners use to retain their valuable employees. Contingency theory provided the conceptual framework. The participants were three owners of three small businesses in the construction industry located in Mississippi which implemented successful policies and procedures to retain their employees. The data sources for this study were semistructured interviews, financial statements, newspaper articles, websites, and social media. A thematic analysis was used to analyze the data. Three themes morphed to include challenging employees and reward them accordingly, mitigating unplanned turnover, and treating employees and others fairly. Potential implications for positive social change are that increased profits among small business owners may enable them to provide better benefits and pay and incentive increases to their employees. Small business owners with increased profits may also be better equipped to participate in community-based charitable organizations. Small Construction Business Owners’ Strategies for Employee Retention by Charles H. Griner, Jr. MS, Troy University, 2006 BBA, University of Mississippi, 1991 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University November 2019 Dedication I dedicate this study to my mother, Brenda Morris Griner. She provided encouragement and served as an example of what one can accomplish with hard work and persistence. Acknowledgments I would like to thank my chair, Dr. Kenneth Gossett, for being patient with me while I was being impatient. I would also like to thank the faculty, staff, and my fellow students for all of their input and guidance along the way.
3 citations
Cites background from "A framework for performance evaluat..."
...A resource that companies depend upon is a distribution channel to market and sell their products and services to the end-users (Goyal & Mishra, 2016)....
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TL;DR: This chapter reviews and critiques quantitative research that focuses on the relation between management control systems (MCS) and strategy, and concludes that knowledge of the relationship between MCS and strategy is still somewhat limited.
Abstract: This chapter reviews and critiques quantitative research that focuses on the relation between management control systems (MCS) and strategy. This quantitative research typically relies on survey evidence, and to a lesser extent, interviews and archival data. The focus of research up to the late 1990s was on the fit between the design of MCS and strategy. Controls included cost controls, budgetary controls, and performance evaluation and reward systems. These controls are usually related to business strategy. However, some papers studied operational strategies, such as quality, manufacturing flexibility, and product-related strategies. Recently, more complex characterizations have emerged that focus on the role of MCS in influencing strategic change, through interactive controls, and balanced scorecard approaches, which integrate a range of measures to enable strategic outcomes. It is concluded that our knowledge of the relationship between MCS and strategy is still somewhat limited. The chapter finishes with an outline of methodological limitations and areas for future research.
202 citations
TL;DR: In this article, a survey of 153 manufacturer-supplier dyads showed that collaborative communication fosters continuous supplier performance improvement by enhancing supplier knowledge (of manufacturer needs) and by building supplier affective commitment (toward the manufacturer).
Abstract: Manufacturing firms seek continuous supplier performance improvement because this outcome makes them more competitive in downstream markets. Although manufacturing firms use a range of tools to effect continuous supplier performance improvement, the author focuses on two that are especially important—collaborative communication and control—and poses the following research questions: (1) How does collaborative communication foster continuous supplier performance improvement? and (2) What are the combined effects of collaborative communication and control? The results from a survey of 153 manufacturer–supplier dyads show that collaborative communication fosters continuous supplier performance improvement by enhancing supplier knowledge (of manufacturer needs) and by building supplier affective commitment (toward the manufacturer). With respect to the combined effects of communication and control, the results show that capability control enhances the positive effects of both supplier knowledge and s...
200 citations
Posted Content•
01 Jan 1997
TL;DR: In this article, 11 hypotheses from agency theory, transaction cost analysis, and Ouchi's theoretical approach on the impact of environmental, Company and salespeople characteristics on the design of salesforce control systems (outcome- vs. behavior-based) are summarized and tested on a data set of 270 German sales organizations.
Abstract: 11 hypotheses from agency theory, transaction cost analysis, and Ouchi's theoretical approach on the impact of environmental, Company and salespeople characteristics on the design of salesforce control systems (outcome- vs. behavior-based) are summarized and tested on a data set of 270 German sales organizations. Many of the hypotheses get empirical support. Contrary to hypothesis, however, salesforce size is negatively related to the use of behavior-based control in salesforces.
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