Incentives and Governance of Distributor Networks

Abstract

The most important aspect of an enterprise's marketing strategy is building relationships of trust with its distributors and retailers. Tan Lihua's case study of a foreign paint producer traces the company's successive and parallel efforts to set up a well-functioning distribution network in the Chinese environment. The conclusion to the study suggests how the trial-and-error efforts of this foreign company have contributed to the diffusion of management expertise within China.