ABSTRACT
This chapter focuses on one of three ways to manage channel relationships, namely exercising power. Channel power is the ability to alter another organization’s behavior. It is a tool, neither good nor bad. The interdependence of channel members makes power a critical feature of their functioning. Channel members must invest over time to build power, then assess their power accurately and use it wisely, whether to achieve their own initiatives or to protect themselves from others’ influence attempts. This chapter discusses the nature of power and dependence in channel relationships and describes the five sources of power comprising reward, coercive, expert, legitimate, and referent power. Recognizing that power is two-sided, the chapter examines the management of mutually dependent and imbalanced relationships. The chapter also describes approaches or influence strategies used to translate power into influence. The nature of power in omni-channel relationships is examined.
