While numerous conceptual ideas regarding distribution channel
structures for industrial markets have been advanced in the marketing
literature, there has been little integration of relevant theory and
hardly any empirical testing of these ideas to confirm or define best
managerial practice.  Logistical and informational issues affecting
channel structure are integrated into a single framework labeled as the
Structure-Output Paradigm.  This model regards the channel as the means by
which services are provided to end-users and their needs as constituting
the chief inputs into the channel design process.  Hypotheses derived from
the framework are tested using the PIMS database entailing businesses of
major corporations serving both the European and North American markets.
Results provide strong empirical support for the influence of logistical
and informational service outputs in industrial channel structures, and
underscores the pivotal role of the end-user in designing industrial
channels.