Distributor orientation and channel profitability for manufacturing-centered SMEs: Moderating role of competitive intensity and coordinative intensity

Abstract

Purpose

This study aims to explore how the distributor orientation of manufacturing-centered small and medium-sized enterprises (MCSMEs) influences relationship building outcomes, distributor satisfaction, and channel profitability.

Design/methodology/approach

This study examines the moderating role of competitive intensity and coordinative culture in the association between distributor orientation and relationship building outcomes.

Findings

Empirical results from 115 MCSMEs reveal a strong positive relationship between distributor orientation and distributor satisfaction. The findings also show a positive relationship between distributor orientation and channel profitability. Furthermore, although competitive intensity strengthens the positive relationship between distributor orientation and the two relationship building outcomes, coordinative intensity weakens the positive relationship between distributor orientation and the two relationship outcomes.

Practical implications

Managerial implications and future research opportunities were discussed.

Originality/value

The research contributes to the literature on the management of small and medium-sized enterprises and offers practical implications for manufacturers and distribution channel managers.

Citation

Guo, C., Wang, Y. and Zhu, Y. (2016), "Distributor orientation and channel profitability for manufacturing-centered SMEs: Moderating role of competitive intensity and coordinative intensity", Journal of Research in Marketing and Entrepreneurship, Vol. 18 No. 2, pp. 197-210. https://doi.org/10.1108/JRME-11-2014-0029