The Effect of Use of Power in Buyer-Seller Relationships: An Investigation on the Firm Size Dependency

Abstract

This study aims to introduce the effects of power use on firm performance in manufacturer-retailer relationships. Furthermore, this study will investigate the moderating role of the firm size of channel members between power use variables and firm performance. The data was collected from the 400 manufacturer firms of the supplier-retailer relationships. The conceptual framework is evaluated by exploratory factor analysis and multiple regression analysis using SPSS 15.0. The findings indicate that both expert and market power dimensions of power use have a significant and positive effect on firm performance. Additionally, the moderating effect of firm size is significant when it interacts with expert power on firm performance. Therefore, as long as the firm size (in terms of turnover) grows the expert power affect on firm performance decreases.