International Distributors and the Role of US Top Management: A Requirement for Export Competitiveness

Many manufacturers use informal approaches to engage new international industrial distributors, relying on phone contacts,correspondence and bank referencing to gather background information. Reports on a study to determine the desirability of top managers taking time to visit new international distributors in order to develop a contract and to lead in building interpersonal relationships. Commercial attachés or senior embassy officials were interviewed to obtain their perspectives on the proper role of American top managers in the development of international distributor contracts. Nearly all concluded that a managerial visit was necessary to conduct contract negotiations. About one‐quarter of the respondents felt that top officials from American firms needed to be involved. The majority reported the issues could be negotiated by any level manager who had power to act decisively on contract matters. In most cases, however, long‐term contracting responsibilities are usually reserved for people with top management status. Consequently, another international travel duty for top managers may be developing.