The country of origin advantage is not sufficient for success in foreign markets if the governance of distribution channels is weak. A company’s strategy to leverage the country of origin of a product (or company) in international markets must take into consideration the role of distributors in order to deliver part of the value that is embedded in the given product or brand to final consumers The present research aims to analyse the degree of control exerted on distribution channels by small and medium-sized Italian companies enter- ing the Chinese market. All selected companies (a total of 71) considered belong to the furniture, food and fashion industries: sectors in which Italian companies typically leverage the Made in Italy effect and where the role of the foreign distributor is significant to strengthen the positive value of the country of origin effect. An online self-administered questionnaire was used to collect results. The main results show the need for improvement in the governance of distribution channels for Italian companies operating in China. The current use of indirect entry modes and problematic relationships with Chinese distribution partners make it difficult to convey the value of Made in Italy to the final consumer, limiting the future growth of Italian compa- nies in the Chinese market.

Distribution channel governance and value of ‘Made in Italy’ products in the Chinese market

VIANELLI, DONATA;DE LUCA, PATRIZIA;BORTOLUZZI, GUIDO
2012-01-01

Abstract

The country of origin advantage is not sufficient for success in foreign markets if the governance of distribution channels is weak. A company’s strategy to leverage the country of origin of a product (or company) in international markets must take into consideration the role of distributors in order to deliver part of the value that is embedded in the given product or brand to final consumers The present research aims to analyse the degree of control exerted on distribution channels by small and medium-sized Italian companies enter- ing the Chinese market. All selected companies (a total of 71) considered belong to the furniture, food and fashion industries: sectors in which Italian companies typically leverage the Made in Italy effect and where the role of the foreign distributor is significant to strengthen the positive value of the country of origin effect. An online self-administered questionnaire was used to collect results. The main results show the need for improvement in the governance of distribution channels for Italian companies operating in China. The current use of indirect entry modes and problematic relationships with Chinese distribution partners make it difficult to convey the value of Made in Italy to the final consumer, limiting the future growth of Italian compa- nies in the Chinese market.
2012
9781781955604
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11368/2629458
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