International Distribution Channel

International Distribution Channels Strategic Alliances in International Distribution Channels Of the many critical success factors necessary for international distribution channels to succeed, the most important are found within the context of International Strategic Alliances (ISA). In the research study results presented in the peer-reviewed study Strategic Alliances in International Distribution Channels (Mehta, Polsa, Mazur, Xiucheng, Dubinsky, 2006) the authors provide an empirically sound and well defined framework fro evaluating the potential success of ISA alliances across nations, geographic regions and cultures.

The authors conclude that the motivation to learn and share knowledge, followed by relationship closeness is the two most critical success factors that contribute to (Mehta, Polsa, Mazur, Xiucheng, Dubinsky, 2006). These two factors can traverse differences in cultural orientation towards competitive and commerce, as is shown in the result of the U.S. And Poland compared to Finland and the People's Republic of China (P.R.C.).

Analysis of Objectives and Methodology The researchers defined a series of hypotheses deliberately designed to capture significant differences in ISA critical success factors, taking into account variations in economic competitiveness and government intervention vs. support in businesses. Four nations were deliberately chosen to cover this spectrum of factors critical to testing the hypotheses of the study with manufacturers in each nation defined as the respondents.

The four cultures of the U.S., Poland, Finland the P.R.C have significantly different cultures and levels of competitiveness (Mehta, Polsa, Mazur, Xiucheng, Dubinsky, 2006). The researchers found that the differences across these four cultures, even from a preliminary literature review perspective, were strong enough to support their hypotheses testing. The implications of cultures on ISA critical success factors emerges as a dominant factor in explaining statistically significant variations in the value of relationships vs. The value of learning (Mehta, Polsa, Mazur, Xiucheng, Dubinsky, 2006).

To ensure that sampling biases where minimized, the researchers created unique interview and questionnaire strategies for each nation. This assured a higher-than-average response rate across all four nations, and also averted the potential of researcher bias on Poland, a nation known to be distrustful of surveys in general and detailed studies specifically (Mehta, Polsa, Mazur, Xiucheng, Dubinsky, 2006). Sample size was not meant to be representative of each nation; the basis of respondent contact information was industry groups. The U.S.A.

manufacturer sample size was 480, Finland, 522., Poland and P.R.C., both 100 (Mehta, Polsa, Mazur, Xiucheng, Dubinsky, 2006). The study relied on this diverse of a methodology as the hypotheses sought to capture the most highly differentiated aspects of international distribution channel strategies and the role of International Strategic Alliances (ISA) to enable them.

Analysis of Major Findings The ability to create a knowledge sharing relationship that also has relationship closeness with nurtures and strengthens trust, relationship longevity and cooperation emerge as the top three critical success factors for any International Strategic Alliances (ISA) to succeed (Mehta, Polsa, Mazur, Xiucheng, Dubinsky, 2006). The cooperation of collation partners to common goals that transcend their specific geographic and even cultural limitations is based on how dependent international distribution partners are on each other for information and knowledge.

The study shows that it isn't necessary the most measurable and quantifiable factors of performance that matter in international distribution channel agreements, it's how dependent those in the channel alliances and ISA frameworks are on each other for knowledge and market intelligence (Mehta, Polsa, Mazur, Xiucheng, Dubinsky, 2006). It is the inter-firm and extra-firm collaborative agreements that matter the most, not necessarily the current sales opportunities or deals occurring at any given point in time.

Implications for International Marketing Theory and Practice As knowledge unifies international distribution channel partners and creates highly cohesive international strategic alliances across cultures and nations, the creation of knowledge-sharing networks is critical to the further study of these dynamics. There are many examples of the multiplicative effects of knowledge-sharing networks, with the Toyota Production System being a prime example of how network-based tacit and implicit knowledge can be transformed into a competitive advantage (Dyer, Nobeoka, 2000).

The use of knowledge-sharing networks in an international distribution channel context would also act as an accelerator to the overall growth of each subsequent key success.