The dynamic effects of power in buyer-seller relations – the process of gaining and using power to increase share of profitability
(English)Manuscript (preprint) (Other academic)
This conceptual study contributes with an understanding of the dynamic effects of power in buyer-seller relations and how power can be used to increase share of profitability from a buyer-seller relation. It is concluded that coercive and non-coervice power bases can be used for fundamentally different purposes, but at the same time they are closely related to each other. Non-coercive power is used for achieving changes which are unresisted by the influencee, meaning that the change is welcomed by the influenced actor. As no resistance is overcome the influencer is not losing any power – it is only redistributed to other power sources. A change caused by a non-coercive power base may therefore create a coercive power base for the influencer. A coercive power base is used for achieving resisted changes, meaning that the change is unwanted by the other actor. One type of resisted change is a change in how value is shared. With this reasoning, it is concluded that an increased share of profitability is achieved through exerting power from a coercive power base. This power base can have appeared from changes caused by exertions of non-coercive power bases. By understanding the mechanisms behind how power can be used, managers are aided in their decision making and analyses of negotiating situations.
Proactive range management, business model, retail, ARA model
Economics and Business
IdentifiersURN: urn:nbn:se:liu:diva-95560OAI: oai:DiVA.org:liu-95560DiVA: diva2:636041