On the Measurement of Interfirm Power in Channels of Distribution

Abstract

Based in part on previous research reported in the marketing channels literature, an approach for measuring interfirm power is developed which centers on power's hypothesized sources. Within a dyadic channel relationship, the role performance of a firm in its primary channel responsibilities is seen to drive the level of the other firm's dependence in their relationship. This dependence, in turn, determines the former firm's level of power over the latter firm. Empirical results from a study in a franchise channel system are used to evaluate the reliability and construct validity of the proposed measures.