Performance of channel systems plays a critical role in two interrelated ways: in the assessment of a firm's channel structure, and in the improvement of channel design and channel management. Despite its importance, channel performance has received little attention in the marketing literature. Existing work is dominated by the contingency theory paradigm, which is characterized by a reductionist perspective that treats the link between channel performance and other phenomena as unidirectional and linear.; By contrast the present study uses an approach based on configuration theory, which is characterized by a holistic perspective whereby channel performance is simultaneously linked with business environment, organizational and channel structure, and business strategy, and relationships among variables are thought of as bi-directional and nonlinear.; This dissertation is the first study that applies configuration theory---a complex theoretical and analytical approach developed in the strategic management literature---to the field of marketing channels. Specifically, this study will be able to answer the following question: What combinations of a business level strategy (i.e., differentiation or cost-leadership), environmental context (i.e., dynamic, complex, or munificent), channel structure are likely to distinguish channels with high performance from those with low performance? This question will be addressed in the context of multiple channels because these structures have become the dominant distribution practice in various industries.; Based on existing theoretical considerations, I first identify two types of multiple channel configurations: (1) Configuration 1--- organic-complex multiple channels, characterized by decentralized, less formalized, and highly specialized structures; composed of greater number of different channels, most of which are integrated; adopted by differentiator firms operating in highly dynamic, highly complex, and highly munificent environments. (2) Configuration 2---bureaucratic-simple multiple channel systems, characterized by centralized, formalized and less specialized structures; composed of fewer channels and dominated by independent channels; adopted by cost-leader firms operating in less dynamic, less complex, and less munificent environments.; With data collected from the field, I will first test the hypothesis that these two configurations prevail. I will then test the hypotheses that performance of those multiple channel systems that are close to the proposed ideal configuration profiles will be high.
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