Control Mechanisms Within Export Channels of Distribution

Abstract

A large percentage of U.S. manufacturers are either refraining from exporting or are involved in inefficient methods of exporting because they may not understand how to control their export operations. The authors of this study suggest how the majority of U.S. manufacturers may effectively participate in exporting through intermediary usage by building the correct degree and type of control mechanisms. Literature derived from transaction cost analysis and export stages are used to link the antecedents of control to the degree and the type of control mechanisms (monitoring and providing information). The results show that manufacturers periodically monitor their intermediaries and provide information in order to achieve control. Important implications are drawn for both exporters and nonexporters.