Interorganizational influence processes in market channels

The study investigated power and influence within interorganizational exchange relationships present in market channels as developed in a simulation setting. A process model of dyadic interorganizational relations developed by Cadotte and Stern (1979) served as the basis for a conceptual model of the interorganizational influence process. Specific conceptual relationships within the model were chosen and investigated in the study. These included the relationship between a channel member's employment of influence strategies as perceived by a channel partner and; (1) a ratio of channel member power, (2) attributions of influence by a channel partner, and (3) a channel partner's perception of conflict. Hypotheses were developed for these relationships employing prior interorganizational and interpersonal influence research.

A laboratory game simulation developed by Cadotte (1986) entitled Market Place was adopted for the research setting. The Market Place simulates interorganizational exchange relationships involving manufacturers and distributors. Teams of participants containing MBA and undergraduate marketing majors were recruited to perform the role of manufacturer and distributor organizations.

A cross-sectional survey and unobtrusive methods of measurement were employed for the data collection. Channel member power was operationalized through objective assessments of the percentage of contribution margin derived from a channel partner, by a channel member. Multiple item perceptual indexes of a variety of communication and behavior influence strategies were developed. Channel member attributions of influence were measured employing a multiple item scale of potential influence by a channel partner. Channel member conflict was measured through channel member perceptions of affective conflict. Data from organizational members involved in channel member interaction was weighted and aggregated to form the organizational unit of analysis.

The hypothesized relationship between influence strategies and the power ratio was not supported by the test results. The most promising cause for the lack of support concerned the inability of the power ratio to distinguish differences in the magnitude of power held by channel members.

The results of the study provided partial support for the relationship between influence strategies and attributions of influence. Positive unpressurized influence communications were found to be positively correlated with attributions of influence rather than not significantly related as was hypothesized. A probable explanation for the test results concerned the measurement of attributed influence. Prior research has employed attributions of "control" which appears to depict complete influence. The measure developed for the study employed attributions of "influence" and was believed to cover a more comprehensive domain of the influence construct. The difference in the operationalization of the measures may have contributed to the results.

Partial support of the relationship between influence strategies and conflict was also provided by the test results. Positive unpressurized influence communications were found to be positively correlated with conflict rather than negatively correlated as hypothesized. The most promising cause for the findings which were not supported concerned the dual role of influence strategies as both a cause and result of conflict.

Suggested future research directions included conceptual development and clarification of channel member power, influence strategies, attributed influence and conflict. In addition, investigation of the relationship of these variables to other market channel constructs and in in alternate channel settings was suggested.