Evaluating channel partner’s performance: impact of task environments on the relevance of measurement metrics
08 Jan 2019-Journal of Business & Industrial Marketing (Emerald Publishing Limited)-Vol. 34, Iss: 2, pp 488-504
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.
Citations
More filters
TL;DR: In this paper, the authors integrate information asymmetry and relationship-based views to articulate how communication, directly and indirectly, influences channel members' opportunism and curtail its ill effects on relationship performance.
22 citations
TL;DR: In this article, the authors analyzed the perceptions and executions of work culture, the suitability of tasks, and leadership style that would have an impact on performance by using job satisfaction as mediating these conditions.
Abstract: This study is designed to analyze the perceptions and executions of work culture, the suitability of tasks, and leadership style that would have an impact on performance by using job satisfaction as mediating these conditions. This research was conducted at the Regional Office of the Directorate General of State Wealth (DJKN) in the Aceh Province. Primary data is obtained by circulating questionnaires to 121 workers on the institutions mentioned above using the census method. The primary data from the results of our field analysis using "The Structural Equation Modeling (SEM)". From the results of the analysis, we found that work culture, job suitability, and leadership style had a positive impact on performance. In addition, the satisfaction they get in work can trigger movement in performance achievement. From these findings, we need to underline that their average perception is consistent with the practices carried out by participants.
8 citations
Cites background from "Evaluating channel partner’s perfor..."
...Previous research concludes the importance of calibrating performance evaluation metrics into the appropriate task environment paths (Goyal & Mishra, 2019)....
[...]
TL;DR: In this article, the authors examine the transformation of the perspective applied to distribution structures in the late 1900s and examine how the perspective on a certain phenomenon changes through the dynamic interplay between business reality, conceptualisation of this reality and the managerial recommendations derived from this conceptualisation.
Abstract: Purpose The purpose of this paper is to examine the transformation of the perspective applied to distribution structures in the late 1900s This change implied that the previous focus on channel management by a channel captain was abandoned because of changes in the business reality This perspective was replaced by models and concepts featuring collaboration and joint coordination between actors and relationships embedded in networks Design/methodology/approach Changes of perspectives on phenomena are assumed to occur through the dynamic interplay between business reality, the conceptualisation of this reality and the managerial recommendations derived from this conceptualisation The study is based on a thorough longitudinal literature review Findings Shifts of perspectives occur when there is an increasing mismatch between the current business reality and mainstream conceptualisations In this transformation, new constructs are required to illustrate new aspects of the business reality, exemplified in the study by interaction and networks Some established concepts lose their significance, illustrated by the channel captain Others may be re-interpreted, as is the case with the power concept The study also shows that "forgotten" conceptualisations can be re-wakened, exemplified by the view of distribution structures as network constellations In turn, these changes in the conceptualisation of distribution impact the managerial recommendations Originality/value To the best of the author's knowledge, there are no previous studies analysing how the perspective on a certain phenomenon changes through the dynamic interplay between business reality, conceptualisations and managerial recommendations
7 citations
TL;DR: In this article , the authors developed a green innovation adoption model for food processing SMEs to overcome the abovementioned problem and assess the effect of the model on performance, which consists of two components, namely, organizational capability perspective and market perspective.
Abstract: The adoption of green innovation is urgent for small- and medium-sized enterprises (SMEs) in the food processing industry to reduce pollution, because the large number of food processing SMEs will contribute more to environmental waste. Nevertheless, SMEs face additional obstacles in adopting innovation compared with large enterprises. This study aims to develop a green innovation adoption model for food processing SMEs to overcome the abovementioned problem and assess the effect of the model on performance. The model consists of two components, namely, organizational capability perspective and market perspective. A total of 245 respondents, who were owners or managers in their respective SMEs, were selected. Data were analyzed using structural equation modeling. The results demonstrate that pro-green leaders, green human capital, and green market orientation significantly influence green innovation adoption, which are, in turn, influenced by absorptive capacity. Furthermore, green innovation adoption and green market orientation significantly influence marketing performance. This finding is important in helping owners of food processing SMEs in formulating strategies for adopting green innovation.
5 citations
TL;DR: In this paper, an integrated model, combining fuzzy analytical hierarchy processing and quality function deployment, is used to construct a purchasing performance matrix for engineering procurement and construction companies (EPCs), and the relationship is established by linking internal customer needs (whats) with engineering requirements (hows, buyer-related factors [BRFs] and organization related factors), three different of buying types are included: new task, straight rebuy and modified rebuy.
Abstract: This paper aims to empirically validate an integrated model, combining fuzzy analytical hierarchy processing and quality function deployment, used to construct a purchasing performance (PP) matrix for engineering procurement and construction companies (EPCs). The relationship is established by linking internal customer needs (“whats”; product-related factors), with engineering requirements (“hows”; buyer-related factors [BRFs] and organization-related factors). Three different of buying types are included: new task, straight rebuy and modified rebuy.,The paper uses qualitative and quantitative techniques to determine the factors affecting PP and the extent of their influence. Evaluation of the factors affecting the PP of EPC companies is based on 32 industry experts’ opinions, supported by the academic literature.,The most significant finding is that researchers should explicitly consider BRFs like buyer knowledge, which has been missing in earlier PP models. BRFs appear to be a link between different types of buying; ignoring their importance can lead to less optimized PP and erroneous findings.,This research is unique, as PP models of EPC firms have neither been published nor validated empirically, either nationally or internationally. This exploratory study adds to the body of knowledge both by identifying the emerging factors that constitute the construct of the PP of EPCs and by filling the gap between theory and practice concerning an evaluation of the PP of EPCs. Theoretical and practical implications are discussed.
2 citations
References
More filters
TL;DR: In this paper, the statistical tests used in the analysis of structural equation models with unobservable variables and measurement error are examined, and a drawback of the commonly applied chi square test, in additit...
Abstract: The statistical tests used in the analysis of structural equation models with unobservable variables and measurement error are examined. A drawback of the commonly applied chi square test, in addit...
56,555 citations
TL;DR: The extent to which method biases influence behavioral research results is examined, potential sources of method biases are identified, the cognitive processes through which method bias influence responses to measures are discussed, the many different procedural and statistical techniques that can be used to control method biases is evaluated, and recommendations for how to select appropriate procedural and Statistical remedies are provided.
Abstract: Interest in the problem of method biases has a long history in the behavioral sciences. Despite this, a comprehensive summary of the potential sources of method biases and how to control for them does not exist. Therefore, the purpose of this article is to examine the extent to which method biases influence behavioral research results, identify potential sources of method biases, discuss the cognitive processes through which method biases influence responses to measures, evaluate the many different procedural and statistical techniques that can be used to control method biases, and provide recommendations for how to select appropriate procedural and statistical remedies for different types of research settings.
52,531 citations
TL;DR: This article used subjective estimates and extrapolations in an analysis of mail survey data from published studies for estimates of the magnitude of bias and found that the use of extrapolation led to substantial improvements over a strategy of not using extrapolation.
Abstract: Valid predictions for the direction of nonresponse bias were obtained from subjective estimates and extrapolations in an analysis of mail survey data from published studies For estimates of the magnitude of bias, the use of extrapolations led to substantial improvements over a strategy of not using extrapolations
11,245 citations
Posted Content•
TL;DR: Valid predictions for the direction of nonresponse bias were obtained from subjective estimates and extrapolations in an analysis of mail survey data from published studies and the use of extrapolation led to substantial improvements over a strategy of not using extrapolation.
Abstract: Valid predictions for the direction of nonresponse bias were obtained from subjective estimates and extrapolations in an analysis of mail survey data from published studies. For estimates of the magnitude of bias, the use of extrapolations led to substantial improvements over a strategy of not using extrapolations.
9,589 citations
TL;DR: For instance, the authors argues that if transaction costs are negligible, the organization of economic activity is irrelevant, since any advantages one mode of organization appears to hold over another will simply be eliminated by costless contracting.
Abstract: THE new institutional economics is preoccupied with the origins, incidence, and ramifications of transaction costs. Indeed, if transaction costs are negligible, the organization of economic activity is irrelevant, since any advantages one mode of organization appears to hold over another will simply be eliminated by costless contracting. But despite the growing realization that transaction costs are central to the study of economics,' skeptics remain. Stanley Fischer's complaint is typical: "Transaction costs have a well-deserved bad name as a theoretical device ... [partly] because there is a suspicion that almost anything can be rationalized by invoking suitably specified transaction costs."2 Put differently, there are too many degrees of freedom; the concept wants for definition.
9,217 citations