search query: @author McNaughton, R.B. / total: 1
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| Author: | McNaughton, R.B. Bell, J. |
| Title: | Channel switching between domestic and foreign markets |
| Journal: | Journal of international marketing
2001 : VOL. 9:1, p. 24-39 |
| Index terms: | Software Industries International Markets Distribution channels Statistical methods Canada |
| Language: | eng |
| Abstract: | The paper developes a transaction cost model of the circumstances in which small, knowledge-intensive firms switch from the channel they use in the domestic market to a different channel in a foreign market. It is argued that the domestic channel is frequently extended into a foreign market to gain economies of scale, because product characteristics are generally similar and because of strategic momentum. It is suggested that managers need to be aware of the momentum created by domestic channels and fully evaluate alternatives before extending existing channels into a foreign market. The results help to identify conditions under which an international channel strategy that is different from the one used in the home market should be considered for a knowledge-intensive product. |
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