Two-step Influence Tactics: Exploring How Coercive Power is Exercised in Channel Triads

Abstract

ABSTRACT Purpose – Most research on the power issue has taken a dyadic view, implicitly assuming that power is employed directly and successfully on one target via a single route without stakeholders. When such a direct approach is unsuccessful or impractical, however, power holders may influence their targets via third parties. This study, from a triadic point of view, details how the coercive power is exercised through two-step maneuvers, and what differences are between power exercise in the dyads and that in the triads. Methodology/Approach – In-depth interviews were conducted with four suppliers in different industry settings. Findings – Four types of two-step influence tactics are identified on the basis of strategic nature (covert/overt) and the pathways of influence (single/multiple). Differing from the power usage in a dyad without stakeholders, the power usage with the stakeholders in a triad was found to (1) reduce the levels of dependence on the target firm; (2) alleviate the conflicts and retaliation; (3) alter the power direction and influence strength; and (4) add more rooms for the power holder to manipulate the influence tactics. Research implications – The findings of this study expand the understanding of an under-researched dimension of coercive power usage and leverage by connecting the different stakeholders in the channel triads. The four coercive power tactics and their drivers show how the shift of power source from a dyad to a triad impacts on the target firm’s behavior and overall network performance. Practical implications – The findings also provide some guidance for practitioners, so that they may use the two-step coercive influence tactics more appropriately based on the different strategic nature and pathways of influence in the marketing channels. Originality/Value – This study contributes to the literature by providing a conceptual framework and variables for analyzing the two-step power tactics in the channel triads.