Effects of Four Types of Vertical Integration Channel Structure on Channel Performance
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Channel structure is closely related to channel performance. Channel managers try to gain control over channel operations by creating a coordinated and programmed system of participating organizations in the channel system. This channel arrangement is called vertical integration. This study examines the effect of the vertical integration on the performance from the perspectives of channel entrepreneurs. This study suggests that channel performance consists of efficiency, effectiveness, and adaptiveness; and different vertical integration approaches have varying impact upon each performance dimension. In this study, performance rank order of channel structure types in terms of two structural dimensions was tested and suggested.