Purpose The concept of power in the literature is not conclusive yet and still contradictive. As contested concept, power have multi-definition in the literature. This study aims to construct a concept of power between organizations, state-owned enterprises (SOE) and communities in the context of community-based tourism in Borobudur, Indonesia. Design/methodology/approach Participants were 29 individuals representing SOEs (i.e. executive members) and local communities (e.g. village chiefs, community enterprise, managers and residents). Data collection was conducted through interviews, focus group discussions, field records and documents. Using grounded theory, the data were analyzed using open, axial and selective coding. Findings This study discovered that power was fluid. At first, power was a static resource then when it exchanged, it turned into relational/power interplay and at last, became output resource. There was a transformation of antecedent resources of power into a consequential source of power through relationship processes. Research limitations/implications This study should be replicated in other settings for further research, for example, in a business-to-business context and business-to-government to develop a general framework. Practical implications Policymakers should be aware of such fluid power to ensure that community-based tourism programs can benefit all parties involved. Originality/value Findings from this study make several contributions to current literature as follows: this study extends from the existing theories of power, the community-based tourism context where this study was conducted represents actual social situation allowing it to be transferrable to real environment and elaborating theory of power into a comprehensive framework.