DISCUSSION

This study aims to fill that gap by which firms can add direct or independent channels to their channel mix and thus adopt independent-direct (I-D) or independent-independent (I-I) multiple channel systems. This study empirically showed that under certain conditions firms add direct or independent channels to their channel mix

Discussion
High-specific asset investments, highenvironmental uncertainty and high internal uncertainty conditions, firms add direct channels and adopt I-D multiple channel Systems. On the other hand, under low levels of those variables firms expand their channel system into multiple channels by adding independent channels

THEORETICAL CONTRIBUTION OF THE STUDY

Findings support original transaction cost arguments.

Under high specific investment, high internal

uncertainty firms prefer hierarchical governance to market governance.

Firms add direct channels rather than

independent channels to the channel mix.

MANAGERIAL IMPLICATIONS

The findings provide some guidelines to managers in terms of the composition of their multiple channel systems. When they make high amounts of specific investment on their independent channels.

Limitations in the study

First this study only examines three transaction cost variables. Secondly the hypothesis using data obtained from only two industries and countries.

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