ABSTRACT
This chapter explores and provides clearer insights into the complexity of the key concept of power in business relationships, with an emphasis on the buyer-supplier type of relationship. Contextual events represent different sets of non-intentional tactics and external factors regarding the focal relationship and their impact on the power dynamics in the buyer-supplier relationship. Specifically, the actions undertaken for strengthening one’s own competencies in key areas of the supply chain increase the likelihood of better bargaining position in the existing business accounts and through expanding relationship portfolio. International marketing managers can use power to manage conflict and/or increase performance in international distribution channels depending on the situation, context and time. Specifically, managers should use non-coercive power to decrease dysfunctional/emotional relationship conflict, and coercive power to decrease functional/cognitive/task conflict.
