Abstract
This study examines the effects of power imbalances in a dyadic channel relationship and an individual's locus of control orientation on a transaction-specific decision. Both manifest and latent relative power are independently manipulated in favor of either the manufacturer or distributor in an experimental setting. The primary dependent measure is the likelihood of cooperation by the distributor. Results indicate a strong effect along the manifest dimension, perceived direct influence over the transaction. A moderate effect is observed along the latent dimension, a vast imbalance in company size. The direction of these effects on cooperation is dependent upon which party possesses the relative power advanatage. An exploratory path analysis reveals an indirect causal relationship between locus of control and cooperation.
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