Performance implications of distributor effectiveness, trust, and culture in import channels of distribution

Recent research has highlighted the need to examine international channels of distribution from the viewpoint of the industrial distributor, with a focus on how distributors may add value to their channel relationships. The present research responds to such calls and focuses on the value added in terms of the extent of channel functions undertaken by the distributor on behalf of export-manufacturers. Trust is also examined as a source of added value that may be particularly important for cross-cultural relationships. Trust is investigated for its mediating effects on otherwise detrimental effects of cultural value differences. We also examine the presence of explicit legal contracts used to govern channel relationships and find that the use of such contracts may also hinder distributor perceptions of performance.