Chapter 1 Introduction
Marketing channel is “a set of interdependent organizations involved in the process of marketing a product or service available for use or consumption” and is often viewed as “a key strategic asset of manufacturers” (Anne, 2001). Its primary function is to bridge temporal and spatial gaps between supply and demand and to facilitate exchange of goods and services (Kacker et.al. 1991, p.2). They have been acknowledged in the literature as being a vital source of competitive advantage and cost savings (Narus and Anderson, 1996, p.112; Day, 1990). It is agreed among marketing managers and scholars that channels deserve special attentions so as to win the battle with local business enterprises (i.e. Bowersox and Cooper, 1992).
Since 1990s, multinational Corporations (MNCS) gradually become the leading actors of foreign companies who come to explore the market of China. Along with China’s WTO entry, a tide of investment by MNCS surges in China. And now about 450 of the 500 largest multinationals in the world have invested in China. About 30 of them have founded their headquarters in China. In addition, MNCS have英语论文网 【http://www.51lunwen.org】 founded more than 600 research organizations. At the same time, MNCS have devoted to build their marketing channels in order to maintain the overall presence and success they enjoy in the Chinese marketplace. However, scholars study (i.e. Luo, Y.,& Park, S. H 2004, p.145; Tsui A. S et al 2004, p.133) has shown that many foreign companies have not won the battle against their increasingly marketing savvy local rivals in spite of a significant proportion of their marketing budgets in China. As some literature points out, “adaptation of distribution strategy to meet the particular sets of circumstances in foreign environments is likely to be necessary in virtually all cases” (Rosenbloom and Larsen, 1993). Both successful joint ventures and failed investments have been also reported recently，however the few empirical investigations have been severely limited in industry or enterprises. Research addressing issues of the channel conflicts, the applicability of channel theory derived from developed market in developing market has appeared, but few focuses on identifying the key driving factors and their managerial implications for foreign investors to successfully enter China’s market. The practice show that the theory of marketing channel developed within western market is not always applicable for the MNCS in China (which are deemed emerging economy, Zhang & Marsha, 2004). In Chinese market, except relying on high quality products and the scope superiority, what’s more im 本文来自：英语论文网 【http://www.51lunwen.org】