A research paper Dealing with Institutional Distances in International Marketing Channels: Governance Strategies That Engender Legitimacy and Efficiency by Prof Zhilin Yang and Prof Chengting Su, Associate Head and Head of the Department of Marketing at CityU, respectively, and Prof Kim-shyan Fam, Professor of the School of Marketing and International Business at the Victoria University of Wellington, has been selected as a winning paper in the prestigious Emerald Citations of Excellence for 2015.
Congratulations to Prof Yang and Prof Su!
Firms doing business in foreign institutional environments face pressures to gain social acceptance (commonly referred to as legitimacy) and difficulty in evaluating market information, both of which undercut firm performance. In this article, the authors argue that firms can design governance strategies to deal with foreign institutions to secure both social acceptance and firm performance. Using a Chinese sample of manufacturers that export products to various foreign markets through local distributors, the authors develop and test a model that bridges the effects of institutional environments and governance strategy on channel performance. Specifically, they find that firms can use two governance strategies, contract customization and relational governance, to deal with both legitimacy and efficiency issues and to safeguard channel performance. Thus, international channel managers are advised to maintain an integrated management of legitimacy and efficiency in foreign marketing channels.
About the Emerald Citations of Excellence
Each year Emerald Group Publishing awards certificates to highly cited papers relating to the areas of Business Management, Finance, Accounting, Economics and Marketing. The selection process made by Emerald’s own editorial experts is based initially on the citations being given to papers published in a previous year, but the panel of judges also take into account the content of the papers themselves in terms of novelty, inter-disciplinary interest and relevancy in today’s world.
For more information about the award, please visit the Emerald site.