The Channel Control Mechanism Of The Injection Plastic Machine Industry

China’s injection molding machine industry has developed rapidly since the reform and opening up.At present,the output ranks first in the world and occupies a great market share.Injection molding machine is the largest processing machinery used in the plastic processing industry,and with the wide application of injection molding machine in all walks of industries,it has not only made the industry gradually formed a strong regional characteristics,but also makes the domestic injection molding machine market in a relatively stable state.Therefore,China injection molding machine enterprises,led by China’s injection molding machine production giant S,began to seek to further expand their business in the international market,and have invested and build factories overseas to carry out international business.Injection molding machine enterprises generally use the global agent system to carry out international marketing.Then,how to design the corresponding control mechanism for agents in different countries(control mechanism refers to the client’s control methods and means,the main purpose is to promote and encourage exchange partners to achieve the designated goals)to effectively help enterprises achieve international development strategic goals?When injection molding machine enterprises develop international business,what are the differences in the control mechanism in the domestic and international markets?This is the mainstay of this study.Based on transaction cost theory and relationship exchange theory,this paper divides the control mechanism into contract control and relationship norms,and agent relationship performance into financial performance and relationship satisfaction.By comparing the differences between S in China and India markets,different national environmental factors(including legal environmental factors,economic environmental factors,technical environmental factors and competitive environment factors)on the control mechanism and relationship performance.This paper further presents several research hypotheses and uses interview methods to validate the results.The research confirmed that China’s contract control and relationship norms adopted in the domestic injection molding machinery industry are stronger than the Indian market.The study shows that different national environmental factors influence different control mechanisms on the performance of agent relationship:with high macroeconomic stability,high national market competition(high industry concentration),S uses contract control to improve relationship performance and low industry technology development and low market competition(low industry concentration).