Building trust among channel members via power sources

Abstract

Purpose Building on encapsulated interest account and motivated cognition account, this study aims to investigate how channel members extend trust in a channel leader when the channel leader applies various non-coercive power sources (e.g. referent, expert, legitimate and reward power). Besides, the study explored the changes in channel members’ trust in a channel leader when each non-coercive power source is coupled with coercive power sources. Design/methodology/approach Using survey items from previously validated scales, the study collected responses from 237 channel members of 3 paint distribution channels in India. Data were analysed using structural equation modelling and multi-group moderation analysis techniques. Findings Findings indicated that expert and reward power sources enhance trust in channel leaders while affective commitment mediates the effects of all the non-coercive power sources on trust. Further, coercive power weakens the effects of expert power on trust. Research limitations/implications The study is based on a cross-sectional survey and confines to the paint industry in India. Replicating this study in other countries and industries will better generalise the study’s findings. Practical implications The study recommends that channel managers use power sources to build trust in channel leaders. Consequently, they will be able to emphasise those specific power sources while developing channel management strategies. Originality/value The study contributes to a greater understanding of the power-trust relationship.