THE EFFECT OF PROCESS INTEGRATION ON ORGANIZATIONAL CULTURE FOR STRATEGIC COLLABORATION IN AUTOMOBILE INDUSTRY
Keywords:
Strategic collaboration, retail marketing strategy, vehicles, automobiles, cars, Collaborative marketingAbstract
A strong partnership in new vehicle retail management is a long-term commitment made by automakers and dealers towards mutual benefit. Manufacturers and dealers share a shared purpose in selling things, which makes everyone involved will benefit from a collaborative effort to sell a model automobile. This paper studies the aspects of trust that is built between the manufacturer and dealer which is affected by process integration, cultural understanding, and contract flexibility. The methodology followed was quantitative in nature in which cross-sectional data from the same manufacturing company dyad was employed. The findings of the research show a positive association between process integration with cultural understanding and contract flexibility and together these affect the trust that is built between the parties.
Downloads
References
Agrawal, D. and Lal, R. (1995) Contractual arrangements in franchising: an empirical investigation. Journal of Marketing Research 32, 213–21.
Anderson, E. and Weitz, B.A. (1989) Determinants of continuity in conventional industrial channel dyads. Marketing Science 8, 310–23.
Anderson, E. and Weitz, B.A. (1992) The use of pledges to build and sustain commitment in distribution channels. Journal of Marketing Research 29, 18–34. 74
Anderson, J.C. and Narus, J.A. (1990) A model of distributor firm and manufacturer firm working relationships. Journal of Marketing 54, 42–58.
Armstrong, J.S. and Overton, T.S. (1977) Estimating non-response bias in mail surveys. Journal of Marketing Research 14, 396–402.
Automative Council UK. (2022). Mapping UK automotive. Automotive Council UK. https://www.automotivecouncil.co.uk/uk-automotive-sector/mapping-uk-automotive/
Bacharach, S.B. and Lawler, E.J. (1981) Bargaining: Power, Tactics, and Outcomes. San Francisco: Jossey-Bass. Beier, F.J. and Stern, L.W. (1969) Power in the channel of distribution. In L.W. Stern (ed.) Distribution Channels: Behavioural Dimensions. Boston: Houghton-Mifflin Company, pp. 92–116.
Bollen, K.A. (1989) Structural Equations with Latent Variables. New York: John Wiley. Bollen, K.A. and Lennox, R. (1991) Conventional wisdom on measurement: a structural equation perspective. Psychological Bulletin 110(2), 305–14.
Bonoma, T. and Johnston, W.J. (1978) The social psychology of industrial buying and selling. Industrial Marketing Management 17, 213–24.
Brown, J.R., Lusch, R.F. and Muchling, D.D. (1983) Conflict and power dependence relations in retailer-supplier channels. Journal of Retailing 59(4), 53–80.
Buchanan, L. (1992) Vertical trade relationships: the role of dependence and symmetry in attaining organisational goals. Journal of Marketing Research 29, 65–75.
Butaney, G. and Wortzel, L.H. (1988) Distributor power versus manufacturer power: the customer role. Journal of Marketing 52, 52–63.
Cook, K.S. and Emerson, R.M. (1978) Power, equity, and commitment in exchange networks. American Sociological Review 43, 721–39.
El-Ansary, A. and Stern, L.W. (1972) Power measurement in the distribution channel. Journal of Marketing Research 9, 47–52.
Emerson, R.M. (1962) Power-dependence relations. American Sociological Review 27, 31–41.
Etgar, M. (1978) Differences in the use of manufacturer power in conventional and contractual channels. Journal of Retailing 54(4), 49–62.
Frazier, G.L. and Rody, R.C. (1991) The use of influence strategies in interfirm relationships in industrial product channels. Journal of Marketing 55, 52–69.
Frazier, G.L., Gill, J.D. and Kale, S.H. (1989) Dealer dependence levels and reciprocal actions in a channel of distribution in developing countries. Journal of Marketing 53, 50–69.
Ganesan, S. (1994) Determinants of long-term orientation in buyer–seller relationships. Journal of Marketing 58, 1–19.
Gaski, J.F. (1984) The theory of power and conflict in channels of distribution. Journal of Marketing 3, 9–29. Heide, J.B. (1994) Inter-organisational governance in marketing channels. Journal of Marketing 58, 71–85.
Hill, T. (1995) Manufacturing Strategy: Text and Cases. Basingstoke: Macmillan. Hunt, S.D. and Nevin, J.R. (1974) Power in a channel of distribution: sources and consequences. Journal of Marketing Research 11, 186–93.
Kotler, P. (1997) Marketing Management: Analysis, Planning and Control, 9th edn. London: Prentice Hall. Krueger, A.B. (1991) Ownership, agency and wages: an examination of franchising in the fast food industry. Quarterly Journal of Economics 106, 75–101.
Kumar, N. (1996) The power of trust in manufacturer-retailer relationships. Harvard Business Review November–December, 92–106.
Kumar, N., Scheer, L.K. and Steenkamp, J.E.M. (1995) The effects of perceived interdependence on dealer attitudes. Journal of Marketing Research 32, 348–56.
Lal, R. (1990) Improving channel co-ordination through franchising. Marketing Science 9, 299–318.
Larzelere, R.E. and Huston, T.L. (1980) The dyadic trust scale: towards understanding interpersonal trust in close relationship. Journal of Marriage and the Family 42, 595–604.
Lawler, E.J., Ford, R.S. and Blegen, M.A. (1988) Coercive capability in conflict: a test of bilateral deterrence versus conflict spiral theory. Social Psychology Quarterly 51(2), 93–107.
Lusch, R. and Ross, R.H. (1985) The nature of power in a marketing channel. Journal of the Academy of Marketing Science 13, 39–56.
Mallen, B. (1963) A theory of retail–supplier conflict, control and co-operation. Journal of Retailing Summer, 24–32 and 51.
Manaresi, A. and Uncles, M. (1994) Retail franchising in Britain and Italy. In P.J. McGoldrick and G. Davies (eds) International Retailing, Trends and Strategies, London: Pitman, pp. 151– 67.
McKinsey. (2019). As dramatic disruption comes to automotive showrooms, proactive dealers can benefit greatly. McKinsey & Company. https://www.mckinsey.com/industries/automotive- and-assembly/our-insights/as-dramatic-disruption-comes-to-automotive-showrooms-proactive- dealers-can-benefit-greatly
Meyer, J.P. and Allen, N.J. (1984) Testing the ‘side-bet theory’ of organisational commitment: some methodological considerations. Journal of Applied Psychology 69(3), 372–8.
Mohr, J. and Nevin, J.R. (1990) Communication strategies in marketing channels: a theoretical perspective. Journal of Marketing 54, 36–51. Molm, L.D. (1989) Punishment power: a balancing process in power-dependence relations. American Journal of Sociology 94(6), 1392– 418.
Mullineux, N. (1995) Car Retailing in Europe: Opportunities for the Next Decade. Oxford: Macmillan. Noordewier, T.G., John, G. and Nevin, J.R. (1990) Performance outcomes of purchasing agents in industrial buyer–vendor relationships. Journal of Marketing 54, 80–93.
O’Sullivan, T. (1995) Daewoo bids to make its marque. Marketing Week 31 March, 20–1. Rempel, J.K., Holmes, J.G. and Zanna, M.P. (1985) Trust in close relationships. Journal of Personality and Social Psychology 49(1), 95–112.
Olatunji, O. O., Ayo, O. O., Akinlabi, S., Ishola, F., Madushele, N., & Adedeji, P. A. (2019). Competitive advantage of carbon efficient supply chain in manufacturing industry. Journal of Cleaner Production, 238, 117937. https://doi.org/10.1016/j.jclepro.2019.117937
OMAR Anderson, J.C. and Gerbing, D.W. (1988) Structural equation modelling in practice: a review and recommended two-step approach. Psychological Bulletin 103(3), 411–23.
Omar, O. E. (1998). Strategic collaboration: a beneficial retail marketing strategy for car manufacturers and dealers. Journal of Strategic Marketing, 6(1), 65–78. https://doi.org/10.1080/096525498346702
Omar, O.E. (1997) Target pricing: a marketing management tool for pricing new cars. Pricing Strategy & Practice, 5(2), 61–9.
Parsons, V. L. (2017). Stratified Sampling. Wiley StatsRef: Statistics Reference Online, 1–11. https://doi.org/10.1002/9781118445112.stat05999.pub2
Rodriguez-Garcia, M., Batet, M., & Sánchez, D. (2019). Utility-preserving privacy protection of nominal data sets via semantic rank swapping. Information Fusion, 45, 282–295. https://doi.org/10.1016/j.inffus.2018.02.008
Scheer, L.K. and Stern, L.W. (1992) The effect of influence type and performance outcomes on attitude towards the influencer. Journal of Marketing Research 29, 128–42.
Scheff, J. and Kotler, P. (1996) How the arts can prosper through strategic collaborations. Harvard Business Review January–February, 52–62.
Schoenherr, T., Narayanan, S., & Narasimhan, R. (2015). Trust formation in outsourcing relationships: A social exchange theoretic perspective. International Journal of Production Economics, 169, 401–412. https://doi.org/10.1016/j.ijpe.2015.08.026
Shashank, B. N., Kumar, K. M. S., & Singh, S. K. (2019). Implementation of dealer Management system in an earth moving and Construction Equipment Manufacturing Company. Asian Journal of Management, 10(4), 321. https://doi.org/10.5958/2321- 5763.2019.00048.9
Sibley, S. and Michie, D.A. (1981) Distribution performance and power sources. Industrial Marketing Management 10, 59–65.
Statista. (2022). Car production in the UK by brand. Statista. https://www.statista.com/statistics/298778/car-production-by-brand-in-the-united-kingdom/
Stern, L.W. and Reve, T. (1980) Distribution channels as political economies: a framework for comparative analysis. Journal of Marketing 44, 52–64.
STRATEGIC COLLABORATION 75 Lusch, R. and Brown, J. (1982) A modified model of power in the marketing channel. Journal of Marketing Research 19, 312–23.
Uncles, M.D., Hammond, K.A., Ehrenberg, A.S.C. and Davis, R.E. (1994) A replication study of two brand-loyalty measures. European Journal of Operational Research 76(2), 375–84.
University of Washington. (2010). Writing-center - Undergraduate - University of Washington Department of Psychology. Psych.uw.edu. http://www.psych.uw.edu/psych.php?p=335
Wells, J. and Rawlinson, M. (1994) The New European Automobile Industry. Basingstoke: The Macmillan Press
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
