Exchange Relationships Between Apparel Retailers and Manufacturers

Abstract

The outcome of exchange relationships between retailers and manufacturers may depend upon the amount of power held by each channel member. In this study, the power held by apparel retailers and manufacturers was examined, based on Emerson's power-dependence theory which states that one channel member's power resides in the dependency of another. Results indicate that the power of retailers and manufacturers was related to their dependence on each other. An imbalance of power was found, with retailers perceived as having greater power than manufacturers in key decision-making areas.