The Role of Market Orientation in Channel Relationships When Channel Power is Imbalanced

How does market orientation influence channel relationships when power is imbalanced among channel partners? We used the Korean department store industry, where retailers are the strongest channel members, to explore channel relationships. Retailer market orientation and supplier market orientation, retailer economic dependence, and supplier use of coercive influence strategy are used to explain the outcome variable, economic satisfaction with the supplier. Results indicate that retailer market orientation positively influences supplier market orientation and alleviates supplier use of coercive influence strategies. Supplier market orientation increases retailer dependence on the supplier and retailer economic satisfaction with the supplier. Managerial implications and recommendations for future studies are included.