Channel Power, Influence Strategy, Relationship Continuity, and Channel Performance: An Examination of Sanitary Equipment Manufacturers

Abstract

Purpose: This study aims to examine the influence of channel power and influence strategy, in terms of non-coercive strategies, on sanitary equipment manufacturers' relationships with channel members and channel performance. Theoretical framework: The study is based on the literature on channel relationships, which suggests that using an influence strategy can contribute to managing the relationship with the channel members and benefit organization performance. Design/Methodology/Approach: In this study, we sampled from a sanitary equipment manufacturer's channel strategy. We used survey data to examine the effect of channel management strategies from sanitary equipment manufacturers on distributors. Findings: The finding indicates that a supplier using economic power tends to adopt non-coercive strategies. In addition, economic power and non-coercive strategies positively affect the continuity of the relationship with distributors. Relationship continuity between manufacturers and distributors positively impacts whole channel performance. Originality/Value: This study sampled the distributors in the sanitary equipment industry, a market in which the consumers are not knowledgeable about the products. Most consumers base their purchase decisions heavily on the channel member’s recommendations. Therefore, how to manage the relationship with the channel members is critical to understand. Research, Practical & Social implications: Distributors are regarded as an extension of the company's sales capabilities. Channels have always held an essential position in the industry. Maintaining relationships between distributors and improving channel performance is a critical question in distribution management.