Channel selection, Control, and Satisfaction of Manufacturers in the Korean Pharmaceutical Market

Abstract

We hypothesize that percent of foreign capital, firm size, product substitutability, product life cycles, competition, and technological uncertainty affect the reliance on integrated channels. Also, we predict that when the reliance on integrated channels is low, the effects of the power sources for firms on channel control will be more evident. In addition, using more integrated channels and having more control over other channel members are hypothesized to affect the manufacturers channel satisfaction. Using data collected from 62 manufacturers in the Korean pharmaceutical market, we report empirical findings generally supporting the research hypotheses. The results and implications are also discussed.