Channel Dependence: Social Network Perspective, The Power Structure And Strategy

Channel power as a central construct in channel relationship has attracted many scholars' interest and attention in the past three decades. However, the study on this construction is not adequate, even if the channel power structure is a fundamental construct which imposes influence on channel members' behavior and channel relationship performance. Based on the social exchange theory, resource dependence theory and social network theory, this dissertation studies the determinants and influence factors of channel power structure in channel network from a network perspective. On one hand, the paper tries to push the dyadic analysis of channel power to a network direction; on the other hand, it tries to involve consumers, who are often ignored, in the analysis framework of channel power. Meanwhile, it makes clear what the consumer's role and position in the channel network and the influences imposed on the power structure by consumer's behavior are.The paper finds that network perspective can explain the determinants of channel power structure better. In a network which is composed of many interconnected channel relationships, the exchange relationships in which the channel member participates constrain the member's behavior on one hand, and on the other hand they provide a new channel from which the channel member can acquire resources(which can be used to improve its power bases). Yet these interconnected relationships interact., and the power position of the channel member in one relationship directly or indirectly influences its power position in another relationship. Since the channel member requires different resources to build its power bases, the role and position of the actor who the channel member builds exchange relationship with can also influence its power position in the network.A consumer plays dual roles in the channel network as a channel member and an environmental factor of commercial channel subsystem. Being a channel member, a consumer is different from other channel members in nature. Since consumer is a rational actor, whether he or she undertakes or how many channel functions to undertake lies in the balance of the costs and the benefits in his/her implementing the functions. Because of their special social attributes and behavioral nature, it is very difficult for consumers to improve their power position in the channel network. On the other side, being an environmental factor, the consumer's behavior can have great influence on the power structure in the commercial channel system. In order to acquire predominant power position, manufactures and retailers will impose influence on consumers' behavior, and the corresponding outcome is that consumers will form different attitudes toward manufactures' brands and retailers' stores (that is brand loyalty vs. store loyalty) which instead will influence the power structure of the manufacturer-retailer relationship.In a relative whole channel network which includes more channel members and other actors, the structure attributes of the network, such as the network density, centrality of channel members, structure nature of cliques, will have an effect on the power structure in the network. And the model of the channel power network structure proposed by this paper makes a preliminary research on these influences.A channel member has more choices in its power strategy from a network perspective. Regardless of changing the exchange structure in a dyadic relationship, or building a new relationship with other channel actors, or changing the whole network nature, a channel member will push the network structure into changing while changing its power position in the network. The power strategy of the channel members is an important dynamic mechanism of channel relationship network evolution.