Paper info

Industrial Market's Distribution Networks in the Virtual Environment

Nadezda Kolesnik

The paper was published at the 27th IMP-conference in Glasgow, Scotland in 2011.

Objectives
The development of the Information and Communication Technologies has been
triggering numerous mutations in the organization of good’s distribution. We can observe
virtualization of customer-supplier relationships and interaction between parties. This
research aims to shed light on the appearance of new type of internet-based distribution
networks in virtual environment on the industrial markets. The research investigates how
distribution network operates in the virtual environment. The research intends to capture
various mechanisms, such as coordination, inter-firm cooperation, management and value
creation opportunities. This paper offers a typology that distinguishes between two types of
distribution organization, namely the traditional focal distribution model and internet based
distribution model. The framework draws on the relationship and network concepts of the
Industrial Marketing and Purchasing (IMP) group (e.g. Ford et al,1997; Håkansson, and
Snehota, 1998;Håkansson, 1987).
Firstly, we analyse the current changes and trends in distribution. Secondly, we describe
traditional dynamic distribution networks. Thirdly, we model virtual distribution networks.
And finally make comparative analysis of both types and conclusions.