Control Mechanisms and Market Knowledge Acquisition: An Empirical Study in China

This research develops a framework for investigating the individual and joint effect of contract and trust on market knowledge acquisition from marketing channel. The data from manufacturer-distributor relationships in China are used to test our hypotheses. The results suggest that, contract is inversed U-shaped impact on knowledge acquisition, while trust can increase knowledge acquisition. And the joint execution of contract and trust will enhance market knowledge acquisition. These findings provide valuable theoretical thinking for manufacturer´s execution of selected control mechanisms to promote its knowledge acquisition from its downstream distributors.