The Influence of Channel Environment on Use of Power

Abstract

With data collected from Sinopec distributors, this study builds a SEM model to analyze the influence of channel institutional and task environment on channel members’ use of power. The empirical results suggest that, both task and institutional environments are influential to channel behavior. In a dynamic envioronment, suppliers tend to use coercive power; and in a munificent environment, suppliers would use non-coercive strategy. When the regulatory environment is influential, suppliers tend to use coercive power, and when the cognitive environment is influential, suppliers would employ non-coercive power. This paper provides new insights into research of channel environment, and also provides practical guidance and suggestions for channel member decision makers.