The Global Impact of ‘Made in Italy’
Edited by Giuseppe Bertoli and Riccardo Resciniti
Chapter 6: Distribution channel governance and value of ‘Made in Italy’ products in the Chinese market
The country of origin advantage is not sufficient for success in foreign markets if the governance of distribution channels is weak. A company’s strategy to leverage the country of origin of a product (or company) in international markets must take into consideration the role of distributors in order to deliver part of the value that is embedded in the given product or brand to final consumers. The present research aims to analyse the degree of control exerted on distribution channels by small and medium-sized Italian companies entering the Chinese market. All selected companies (a total of 71) considered belong to the furniture, food and fashion industries: sectors in which Italian companies typically leverage the Made in Italy effect and where the role of the foreign distributor is significant to strengthen the positive value of the country of origin effect. An online self-administered questionnaire was used to collect results.
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