Channel Organization Forms, Governance Strategy and Control Mechanisms: A QCA Analysis

Purpose This study examines the relationships among channel organization forms (as governance strategies), and channel control mechanisms in marketing channels, investigating how different organization forms correspond to specific governance strategies and control mechanisms.Design/methodology/approach The empirical analysis uses 183 survey responses from Chinese marketing channels. The study employs QCA method in two stages: first to identify the corresponding relationship between channel organization forms and governance strategies, and second to examine the differences in control mechanisms across various organization forms.Findings The study identifies four distinct channel organization forms through five configurations: corporate, franchised, managerial, and relational types. Each form employs different control mechanisms: the corporate type uses either contractual mechanisms or a combination of power and normative mechanisms; the franchised type relies on contractual mechanisms; the managerial type utilizes power mechanisms; and the relational type implements normative mechanisms supplemented by either contractual or power mechanisms.Research Implications This study establishes empirical connections among channel organization forms, governance strategies, and control mechanisms within a unified research framework, providing empirical support for existing theoretical models and enriching the understanding of the interrelationships in marketing channel management.Practical Implications The findings offer guidance for firms in developing and selecting appropriate channel governance strategies and control mechanisms based on their organizational form, helping managers make more informed decisions about channel design and management.Originality/value The innovative application of QCA method in a two-stage approach allows for a nuanced understanding of the complex configurations in marketing channels. This study bridges theoretical concepts with empirical evidence, contributing to both the academic literature and practical knowledge in channel management within the Chinese context.