Our study investigates how buyer power affects supplier relationship commitment. When a buyer exerts power on a supplier, the supplier response can be either simple compliance or commitment at a deeper level. Theoretically, the latter pertains to a supplier's intrinsic motivation. Building on cognitive evaluation theory, our model proposes the distinctive yet interactive nature of reward power and coercive power, commonly considered together as mediated powers. It also posits that nonmediated powers (expert, referent, and legitimate) amplify the influences of reward and coercive powers. An empirical investigation, based on large-scale multinational survey data, provides support for our theoretical arguments. We discuss the practical implications for how buyers can use reward and coercive powers to improve supplier relationship commitment.
All Science Journal Classification (ASJC) codes
- Management Information Systems
- Economics, Econometrics and Finance (miscellaneous)