The effect of organizational culture on territorial exclusivity in international marketing channels: a study of Japanese manufacturing exporters
Asia Pacific Journal of Marketing and Logistics
ISSN: 1355-5855
Article publication date: 2 April 2024
Abstract
Purpose
It is important for an exporting manufacturer to motivate its foreign channel partners to sell and promote its products. An excellent way to motivate such foreign channel partners is to give them exclusive territories. Unfortunately, there is a lack of knowledge regarding the determinants of territorial exclusivity. This study aims to investigate the relationship between organizational culture and territorial exclusivity and the moderating role of firm size in this relationship.
Design/methodology/approach
Survey data were collected from manufacturing small and medium-sized enterprises (SMEs) in Japan. To test the hypotheses, a regression analysis was conducted using the ordinary least squares technique.
Findings
Empirical evidence shows that the cultural values of collectivism and uncertainty avoidance influence territorial exclusivity; collectivist exporters are likely to use territorial exclusivity, whereas exporters with high uncertainty avoidance are not likely to use it. Furthermore, the larger the firm size, the smaller the impact of cultural values on territorial exclusivity; this suggests that large SMEs do not rely on their organizational culture to make decisions about exclusive territories.
Originality/value
The export marketing literature emphasizes the advantages of exclusive territories. By contrast, the channel management literature suggests that exclusive territories also have disadvantages. As exclusive territories have both advantages and disadvantages, it is crucial to answer the following question: What kinds of exporting manufacturers grant exclusive territories to their foreign channel partners? By addressing this question, this study contributes to a better understanding of export channel strategy.
Keywords
Acknowledgements
The author would like to thank Dr Mai Kikumori for her helpful feedback and valuable comments. The author also thanks the Editor of APJML, Professor Ian Phau and the three anonymous reviewers for providing valuable insights and constructive comments.
Citation
Ishii, R. (2024), "The effect of organizational culture on territorial exclusivity in international marketing channels: a study of Japanese manufacturing exporters", Asia Pacific Journal of Marketing and Logistics, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/APJML-09-2023-0878
Publisher
:Emerald Publishing Limited
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