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Port Wine Distribution Strategies
    Buyer/Seller Cooperation

         Luís Sequeira
       (The Fladgate Partnership)


         Princeton, June 9 2012
Research Model
Research Conceptual Framework
Research Model


Mixed methods (qualitative and quantitative) were used based on the
pragmatistic paradigm



       Generalization                     Hypotesis


     Inductive                                  Deductive
     Model                                      Model


        Case Studies                        Inquiry




    Qualitative Methodology         Quantitative Methodology

                                                                      4
Research Model


      Qualitative Methodology – Case Studies


    Generalization           -Exploratory    case      structured
                             interview;

 Inductive                   - convenience sampling;
 Model
                             -Unit of analysis: Evolution of Port
                             wine distribution of a specific
    Case Studies             company      in     key    markets:
                             (UK, France and Netherlands).

Qualitative Methodology

                                                                    5
Research Model

Qualitative Methodology – Case Studies
Research Model


      Quantitative Methodology – Questionnaire


     Hypothesis                Convenience Sample.
                               Port     Wine   Producers    and
            Inductive          distribution companies.
            Model
                               Sample: 101 companies
       Inquiry                 Returned   questionnaires:   61
                               (61,4%)

Quantitative Methodology

                                                                  7
Hypothesis testing

- The dependent variable was categorised as either cooperation or non-cooperation.

- The existence of a strong correlation between the dependent variable and the
independent variables may invalidate the use of a linear regression model. To check
for multicollinearity between independent variables, the correlation matrix of
independent variables in Table 1 was constructed. The highest value being
0.249, between the independent variables ‘adaptation’ and ‘trust’, it is clear that
correlations are in general low and multicollinearity is not a problem.
Hypothesis testing

-After five interactions, the model correctly predicted 83.6%           of   the
observations, demonstrating that the results were very satisfactory.

-Good results were also achieved for sensitivity (dependent variable = 1 =
cooperation) and specificity (dependent variable = 0 = non-cooperation).

- Overall, the estimated equation is 18% better at predicting responses than the
constant probability model.
Hypothesis testing

-Results of Probit analysis, based on the z statistic.

- The values of between 0.2 and 0.4 can be considered very good, according to
McFaden (1976), our model yielding a result of 0.367.
Hypothesis testing



Hyp.                                                     Description                                            Result.
 H1    Supply chain management capabilities promote cooperation between channel members.                        not conf.
 H2    The exercise of coercive power exerts a negative impact on cooperation amongst channel members           not conf.
 H3    Persistent and intense conflict constitutes an obstacle to cooperation in marketing channels             confirmed
 H4    The greater the level of trust, the greater the propensity to cooperate amongst channel members          confirmed
 H5    Increased interdependence enhances cooperation between channel members.                                  not conf.
 H6    The greater the capacity to adapt, the greater the willingness to cooperate amongst channel members      confirmed
 H7    The presence of a foreign sales representative does not constrain cooperation in the marketing channel   confirmed
 H8    Opportunistic behaviour has a negative impact on the development of cooperative relationships            not conf.
Relationship Matrix
Conclusions


-Taking into account the strategic alternatives available for the distribution of
Port, it seems important that the industry diversifies its options by embracing
multiple channels;

- Conflict, when permanent and intense, inhibits the development of
cooperative relationships;

- Trust is likely to solve conflicts;

- A combination of trust and adaptation increases the potential for
cooperation;

- Cooperation can be considered as an important means of developing skills
and resources, which can then be applied to existing transactional
relationships.

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PRINCETON 9 Junho

  • 1. Port Wine Distribution Strategies Buyer/Seller Cooperation Luís Sequeira (The Fladgate Partnership) Princeton, June 9 2012
  • 4. Research Model Mixed methods (qualitative and quantitative) were used based on the pragmatistic paradigm Generalization Hypotesis Inductive Deductive Model Model Case Studies Inquiry Qualitative Methodology Quantitative Methodology 4
  • 5. Research Model Qualitative Methodology – Case Studies Generalization -Exploratory case structured interview; Inductive - convenience sampling; Model -Unit of analysis: Evolution of Port wine distribution of a specific Case Studies company in key markets: (UK, France and Netherlands). Qualitative Methodology 5
  • 7. Research Model Quantitative Methodology – Questionnaire Hypothesis Convenience Sample. Port Wine Producers and Inductive distribution companies. Model Sample: 101 companies Inquiry Returned questionnaires: 61 (61,4%) Quantitative Methodology 7
  • 8. Hypothesis testing - The dependent variable was categorised as either cooperation or non-cooperation. - The existence of a strong correlation between the dependent variable and the independent variables may invalidate the use of a linear regression model. To check for multicollinearity between independent variables, the correlation matrix of independent variables in Table 1 was constructed. The highest value being 0.249, between the independent variables ‘adaptation’ and ‘trust’, it is clear that correlations are in general low and multicollinearity is not a problem.
  • 9. Hypothesis testing -After five interactions, the model correctly predicted 83.6% of the observations, demonstrating that the results were very satisfactory. -Good results were also achieved for sensitivity (dependent variable = 1 = cooperation) and specificity (dependent variable = 0 = non-cooperation). - Overall, the estimated equation is 18% better at predicting responses than the constant probability model.
  • 10. Hypothesis testing -Results of Probit analysis, based on the z statistic. - The values of between 0.2 and 0.4 can be considered very good, according to McFaden (1976), our model yielding a result of 0.367.
  • 11. Hypothesis testing Hyp. Description Result. H1 Supply chain management capabilities promote cooperation between channel members. not conf. H2 The exercise of coercive power exerts a negative impact on cooperation amongst channel members not conf. H3 Persistent and intense conflict constitutes an obstacle to cooperation in marketing channels confirmed H4 The greater the level of trust, the greater the propensity to cooperate amongst channel members confirmed H5 Increased interdependence enhances cooperation between channel members. not conf. H6 The greater the capacity to adapt, the greater the willingness to cooperate amongst channel members confirmed H7 The presence of a foreign sales representative does not constrain cooperation in the marketing channel confirmed H8 Opportunistic behaviour has a negative impact on the development of cooperative relationships not conf.
  • 13. Conclusions -Taking into account the strategic alternatives available for the distribution of Port, it seems important that the industry diversifies its options by embracing multiple channels; - Conflict, when permanent and intense, inhibits the development of cooperative relationships; - Trust is likely to solve conflicts; - A combination of trust and adaptation increases the potential for cooperation; - Cooperation can be considered as an important means of developing skills and resources, which can then be applied to existing transactional relationships.