The relationship between manufacturer and distributors: Knowledge transfer and performance

Abstract

This study explored the relationship between knowledge transfer from manufacturer to distributor. The research question is related to knowledge transfer from the manufacturer to distributor and potential improvement in the performance of the last. This issue is important for companies that are expanding their markets. A survey was conducted in business units that belong to the transport equipment sector. The study’s sample comprised 199 companies. Measuring instrument followed a rigorous sequence of methodological procedures. Measurements were validated by confirmatory factor analysis, and hypotheses were tested using structural equation modeling. Results suggested positive effects of the manufacturer’s performance monitoring and knowledge transfer on the distributor’s performance. By having formal and informal mechanisms to follow distributor activities, it is possible to identify operational activities performed by the manufacturer that might improve distributor performance.