Determinants and distribution of power in buyer-seller relationships in business-to-business markets

Abstract

Relationship marketing in business to business (B2B) markets has been gaining tremendous importance over the last decade. Companies are increasingly implementing one of the basic principles in life; omnia vivunt, omnia inter se conexa (everything is alive, everything is interconnected.) Thus, companies shift their exchanges from transactional to relational. Within this context, the purpose of this study is to understand the constituents to power distribution in buyer-seller relations in B2B markets with a focus on both party’s tendencies to build and stay in the relationship. This research provides a deeper understanding of power in industrial buyerseller relationships by combining literature of relationship marketing and literature of power among channel members. Based on previous research, different variables and their dimensions that lead to power acquisition are identified and a model consisting of power effecting elements is developed. The model deals with the buyer and seller perspectives simultaneously and is tested through empirical data from the Turkish retail, and milk and dairy products industries. The model developed and the results achieved are expected to present how power is distributed in a specific B2B market and it also might help practitioners in their relationships with their supply chain partners.