Interfirm Power-Dependence in Marketing Channels: A Historical Perspective

Abstract

The purpose of this manuscript is to review the literature on power-dependence from a historical perspective. Our examination of nearly seventy years of research revealed an evolution of this phenomenon through various disciplines and theoretical lenses. The transaction cost and resource-dependency theory era focused on the potential of opportunistic behaviors and use of coercive power resulting from asymmetric resource dependencies between channel members. The ensuing commitment-trust theory era established that coercive power usage would be detrimental for channel relationships causing instability. Commitment-trust era researchers encouraged non-coercive power utilization methods even in cases of asymmetric dependency in order to strengthen trust, commitment, and stability among channel members. In the present era, resource-advantage and value co-creation perspectives recommend firms to collaborate interdependently and build various operant resource interconnections to co-create value for the end-users. Finally, we offer possible directions for the future of power-dependence research as marketing channels and supply chains adopt new technologies like Blockchain and artificial intelligence to enhance co-created value for end-users.