Impact of Distribution Channel Competitiveness: A Case of Floriculture Exporters in Sri Lanka

Abstract

Floriculture industry is a potential sector to enhance socio-economic development. Further, it is one of the emerging industries. The objective of the study is to identify the relationship between distribution channel and firm competitiveness of export floriculture industry and to recognize the most influencing factor effects on firm competitiveness. Structured interviews were used to collect primary data. In the process, all the registered Export Floriculture Companies were interviewed. Distribution channel dimensions; cost, quality, flexibility, dependability and utilization were considered as independent variables and firm competitiveness as dependent variable. The findings revealed that there is a positive relationship between the distribution channels and firm competitiveness and cost and utilization are the key influencing factors. The Study recommends when selecting a distribution channel, exporters must be highly aware of cost factors; administrative, warehousing, inventory and transportation cost as well as the utilization factors; cube, weight and vehicle utilization. Further on-time arrivals, on-time departures, different entrance times, multiple dedicated lanes, reducing the damages and complicated form fillings, rules and border clearance checking processes have been highlighted.