Incentives and Governance of Distributor Networks

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.