An evaluation model and empirical study of distributors' performance in Chinese mobile industry

Abstract

Distribution in China has been undergoing great challenges nowadays. Circumstances such as how to evaluate distributor performance have become a critical issue in supply chain management. This paper proposes a Performance Value Index Model based on literary review and analysis of Chinese enterprises. It also validates the correlation among process, relational, and operational performances, financial benefits and potential competitive benefits by using SEM (Structural Equation Model). The results show that process performance and relational performance have positive effects on competitive potential while operational performance has great influence on both financial benefit and competitive potential. Simultaneously, potential competitiveness also positively relates to financial benefit. © 2008 International Federation for Information Processing.