scholarly journals Participation of SME distributors in the gray market: An empirical analysis of Spanish firms

2021 ◽  
Vol 5 (2) ◽  
pp. e372
Author(s):  
Fernando Gimeno-Arias

Within the distribution channels of fast-moving consumer goods (FMCG), the negotiating of agreements with official suppliers is critical for the performance of small and medium-sized (SME) distributors. These distributors are limited by their size and negotiating power, which is significantly lower than that of their suppliers, leading them to seek alternative supply sources, such as that provided by the gray market. The participation of SME distributors in the gray market is not only conditioned by the negotiations with their official suppliers, but also by the role played by the size of the gray market and by the relationship with their suppliers. The literature shows very few studies into SMEs within this area of the distribution channel, so this article contributes an explanatory model of this phenomenon. Based on a sample of 181 Spanish distribution companies, our results confirm that negotiation is a favorable element, while granting limited importance to the role of the relationship. In addition, we find evidence of the key role of commitment between parties in a situation as peculiar as that of parallel marketing channels.

2014 ◽  
Vol 40 (1) ◽  
Author(s):  
Angela Eustace ◽  
Nico Martins

Orientation: The 21st century has presented challenges and opportunities to organisations. Although South Africa is the most competitive economy in sub-Saharan Africa, the country needs to focus on these opportunities to improve competitiveness. Although there is research on leadership and organisational climate, a debate continues about the contribution of organisational climate and the role of leadership to creating the desired organisational climate.Research purpose: The aim was to explore the relationship between leadership and organisational climate in a South African fast moving consumer goods (FMCG) organisation.Motivation for the study: Few studies focus on leadership and organisational climate in South Africa. This study builds on the knowledge that exists. An understanding of the effect of leadership on organisational climate in South Africa allows for customised solutions to the problems of leadership, organisational climate and business performance.Research design, approach and method: Using a descriptive, cross-sectional field survey approach, 896 participants (all of whom worked in one organisation) participated in the survey.Main findings: An exploratory factor analysis (EFA) and structural equation modelling (SEM) multivariate analyses revealed a new set of organisational dimensions, confirmed the relationship between leadership and organisational climate as well as the relationship between organisational climate and its various dimensions.Practical/managerial implications: The findings emphasised the importance of certain generic and specific leadership practices for creating the desired organisational climate in South Africa and in the FMCG environment.Contribution/value-add: This study contributes to the body of knowledge about the relationship between leadership and organisational climate in South Africa.


Author(s):  
Pankaj Bagri ◽  
L. S. Murty ◽  
T. R. Madanmohan ◽  
Rajendra K. Bandi

This case gives a detailed description of the adoption of an e-business initiative by Miracle Industries Limited (MIL), a fast-moving consumer goods (FMCG) organization in India. The initiative involved linking up with key distributors so as to get important sales-related data on a real-time basis. The case describes how the decision to adopt the project was taken after a comprehensive analysis involving a detailed cost-benefits study, and an examination of the roles of various stakeholders — the distributors and the Territory Sales Officers. It also illustrates how the organization proactively managed the changes introduced by the adoption by communicating extensively about the benefits of the project to the stakeholders, and by providing training and incentives to them. The role of the existing IT infrastructure and unambiguous support from the top management in enabling a smooth rollout is also discussed. Finally, the dissatisfaction of some distributors in the post-implementation stage has been captured.


2019 ◽  
Vol 11 (1(J)) ◽  
pp. 1-10
Author(s):  
Solomon OMONONA, ◽  
Olabanji ONI, ◽  
Joseph OBAMEN

Abstract: The study seeks to assess the effects of leadership style on Employee performance (EP) of fast moving consumer goods (FMCGs) companies in South Africa. The specific objectives are: to determine the effects of autocratic leadership style on EP; to evaluate the effect of participative/ democratic leadership style on EP; to ascertain the relationship between laissez faire leadership style and EP; to assess the relationship between transactional leadership style and EP in the FMCGs. Quantitative research survey design was adopted for the study; both primary and secondary sources of data were utilized during the investigation. The sample size of 233 was obtained from the estimated population using Rao soft online calculator at 5% error tolerance and 95% level of confidence. Data was collected via questionnaires and analyzed utilizing Simple Linear Regression (SLR) and Pearson product moment correlation (PPMC). It was discovered that there is a significant relationship between the various leadership styles and the performance of organisations. However, transactional leadership style was found to account for more influence on employee performance than other styles of leadership. Therefore, the study recommends the transactional style of leadership for managers of FMCGs in order to increase employee performance, ensure profitability and sustainability of the organisation.


2018 ◽  
Vol 5 (2) ◽  
pp. 17 ◽  
Author(s):  
R. Agus Trihatmoko ◽  
Mugi Harsono ◽  
Salamah Wahyuni ◽  
Tulus Haryono ◽  
Niki Lukviarman

This article aimed at identifying, describing, and obtaining deep understanding about channel management to reveal the characteristics of relationship-marketing theory. As such, it utilizes the agency theoretical perspective which is occasionally used in prior relationship-marketing research. The research uses qualitative method based on phenomenology theoretical-design and constructivism philosophy to observed fast-moving consumer goods business phenomenon within transactional buying-selling process in the channel management structure. Such design will be applied through the mechanism of distribution channels in traditional trade. The result identifies three positions of distribution channels within the agency theory perspective: (1) relationship between principal, distributor and promotional agencies in an efficient contract position, (2) relationship between distributor, wholesaler and retailer in the position of the realized outcomes, and (3) relationship between wholesaler, retailer and the end-users in a pay-offs position. The findings viewed as a constructive way in describing the re-design model structure of channel management from the agency theoretical perspective. As such, the research revealed three characteristics of relationship marketing;  exclusive contract, direct competitive, and temporary contract approach. This research implies that the agency theoretical perspective will emerge as a new and prosperous theoretical perspective in the field of relationship marketing research in the future. It might be argued that managers in applying any relationship marketing approach are advised to stay focused on improving the quality of relationships among the partners covered by each channel-group. Further, it is expected that future research in the field of marketing management, particularly on relationship-marketing research, to  utilize the  agency theory as their theoretical strands.


Author(s):  
George Okumu ◽  
Paul Kariuki

The purpose of this study was to examine the role of competitive strategic responses on performance of fast moving consumer goods manufacturing firms in Nairobi County, Kenya. The study employed descriptive research design. The target population was 258 managers of these firms; from where a sample size of 157 respondents was obtained. Data was gathered using a semi structured questionnaire, administered using drop and pick method. This data was analyse using both qualitative and quantitative approaches where descriptive and inferential statistics were obtained. The study revealed that, each of competitive strategic responses; prospector strategy (p =0.047; β =.159), defender strategy (p =0.022; β =.135), analyzer strategy (p =0.013; β =.224) and reactor strategy (p < 0.01; β = .299) has a significant positive influence on performance of fast-moving consumer goods manufacturing firms in Nairobi County. These strategic responses account for 29.82% of change in performance of FMCG manufacturing firm in Nairobi County.


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