Searching for the optimum product service distribution channel

Abstract

Purpose To provide propositions regarding how product, market, and firm contextual factors influence the appropriate channel structure of product services and to examine organizational actions resulting from maladjusted channel structures. Design/methodology/approach Building on previous research, six propositions are presented regarding how the choice of direct/indirect service processes is influenced by contextual factors. A seventh proposition is suggested regarding how maladjusted service channels put pressure on the industrial firm to change the service channel, or to compensate for the maladjustment by taking other measures. Five qualitative case studies conducted at American and European companies from different industries are used to test the seventh proposition. Findings Provides empirical support for the seventh proposition and illustrates alternatives for how compensation for maladjustments may be carried out. Research limitations/implications Further research is needed into the mechanisms that can compensate for deviations from the appropriate service distribution channel suggested by the propositions put forth in this paper. Statistical generalization of the propositions on the other hand could be achieved through a wide survey. Practical implications The propositions could function as a managerial tool for identifying inappropriate channel structures, and thus also for identifying the need for change. Originality/value Refines and extends previous theory on the interrelationship between contextual factors and service distribution channels.

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