Abstract

In the typical day-to-day business operation in a channel of distribution, more powerful channel members make requests of less powerful channel members. An interesting and heretofore unexamined question is: What factors affect the probability that the less powerful channel member will comply with the wishes of the more powerful channel member? This study investigates the question above in a manufacturer-manufacturer's representative channel of distribution. The authors develop unidimensional measures of sources of power and demonstrate the effect each source has on compliance. In addition, the manufacturer's representative's desire for autonomy and the importance the representative places on the decision variable that is being influenced are hypothesized to be negatively related with the representative's probability of complying with the wishes of the manufacturer. Finally, original theory is extended through the use of LISREL V modification indices.

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