Less painful punitive actions: Moderating effects of the relationship between coercive influence strategies and satisfaction on channel dyads

Abstract

This study examines three moderators—product life cycle, relationship duration, and guanxi—for their effects on the use of subtle coercive power in supplier–distributor dyads. Based on data from Computer, Communication, and Consumer Electronics (3C) distributors in northern Taiwan, these factors are shown to moderate the relationships between coercive influence strategies and two types of satisfaction. Specifically, if a product is in its mature stage and the firm has a short-duration relationship with its channel partners, the use of coercive actions strengthens the economic satisfaction of the channel members. A low level of guanxi with a supplier firm weakens the negative relationship between coercive strategies and both economic and social satisfaction. The findings of this study suggest that in channel management, punitive acts can achieve economic and social outcomes through informal interactions outside of exchange relationships.