Skip to main content

Forward channel integration and performance: An application of transaction cost economics and the misalignment concept

Buy Article:

$51.63 plus tax (Refund Policy)


Research on forward channel integration ('direct' integrated sales force vs. 'indirect' non-integrated reps) in the marketing literature has predominantly been conducted based upon transaction cost economics (TCE). Several studies have confirmed that TCE succeeds in predicting channel-integration decisions for several transaction cost factors, such as the degree of transaction frequency. However, there are no insights into how far an alignment with TCE's prescriptions positively impacts firm performance. The present study examines the performance consequences of TCE's prescriptions based upon the misalignment concept, which is borrowed from related research streams. The research model is tested with a sample of 196 young firms. Findings suggest that, in accordance with previous research, some channel-integration decisions can be explained by TCE while others are not supported. The results also confirm that the normative value of the TCE acts in line with TCE's prescriptions (e.g. direct distribution channels in case of asset specificity) and positively impacts performance.

Keywords: Distribution; channel intergration; transaction cost economics; normative view

Document Type: Research Article


Affiliations: 1: Aachen University (RWTH), Germany 2: GmbH, Munich, Germany

Publication date: February 1, 2011

More about this publication?

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more
Real Time Web Analytics