The Performance Implications of Designing Multiple Channels to Fit with Strategy and Environment

Abstract

Applying a configuration-theoretic approach to study multiple channels, the authors hypothesize that multiple-channel systems make their greatest contributions to firm performance when their structures are properly aligned with their firms' business-level strategies and with environmental conditions. A conceptual model incorporating these variables is supported in an empirical study of responses from executives at 291 electronic component manufacturers. The results confirm the existence of two theoretically ideal configurations. As hypothesized, channels in these ideal configurations make greater contributions to their firms' performance than do channels in alternative configurations. Moreover, a profile deviation analysis shows that a channel system's contribution to its firm's performance is greatest when that channel system's structural profile is closest to the profiles of top-contributing channel systems operating under similar strategic and environmental conditions. The authors present specific guidelines to help managers design distribution systems for different combinations of environment (e.g., with high and low dynamism, munificence, and diversity) and strategy (cost leadership and differentiation).

Configuring quality management and marketing implementation and the performance implications for industrial marketers

“…Using the configuration-theoretic approach, some studies have sought to explore if certain organizational configurations are more or less appropriate for certain competitive business strategies (e.g., Kabadayi, Eyuboglu, & Thomas, 2007). Furthermore, Aksin and Masini (2008) identify four configurations of shared service organizations and their relationships with performance.…”

Structure, people and process challenges of multichannel marketing: Insights from marketers

“…However, to address the gap in the channel implementation literature as discussed by Kabadayi et al , research must provide multichannel guidelines to marketers. 4 The benefi t of using strategy-type theory 5 is that it allows a comprehensive and reputable implementation framework to be used. The Miles and Snow Prospector and Defender theory can be used to determine whether possible solutions to implementation problems raised by respondents apply to all companies using multichannel marketing or only to those following a particular strategy.…”

“…6 However, recent researchers have proposed business strategy typologies as a more advanced channel decisionmaking model. Kabadayi et al 4 propose that the role of channels within a multichannel approach is contingent on business strategy. They found that the Porter strategy 14 types, such as Differentiator and Cost Leader, were related to channel strategy characteristics, and that the various multiple channels interact with both strategy and environment in effecting organisational performance.…”

“…Kabadayi et al 4 believe that multichannel marketing implementation problems could be reduced if guiding theoretical frameworks were available. They argue that business strategy has not been linked to multichannel marketing in theory.…”

“…They argue that business strategy has not been linked to multichannel marketing in theory. Kabadayi et al 4 believe that there is theoretical support for the use…”