African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4193

Full Length Research Paper

Constructing virtual channel power model

  Tsang-Chiang Chen1, Chang-Hsien Hsu2*, Chi-Yuan Chen3 and Peirchyi Lii2
  1Graduate Institute of Management Sciences, Tamkang University, Taipei, Taiwan, R.O.C. 2Department of Business Administration, Asia University, Taichung, Taiwan, R.O.C. 3Department of Industrial and Management, National Yunlin University of Science and Technology, Yunlin, Taiwan, R.O.C.
Email: [email protected]

  •  Accepted: 19 May 2010
  •  Published: 30 September 2010

Abstract

 

Electronic commerce (E-commerce) is providing an alternative channel model for selling products. With the development of the E-commerce, enterprises have to face a new business model, and supply chain management (SCM) is the optimal solution to implement and integrate E-commerce and competitive advantage of outsourcing. In this day, who owns the channel can lead the entire market. Among the upstream and downstream there generally exists unequal channel power. We explored Taiwan’s virtual channel clothing industry of the causal relationship of satisfaction of the channel members with channel power source and power. In order to explore their causal relationship, SEM oriented structural model path analysis is adopted. Therefore the channel distributors and the retailers can take and maintain mutually beneficial cooperative model, by such a power model so that the both sides are able to reap greater benefits.

 

Key words: Virtual channel, channel power, structural equation model, e-commerce, e-supply chain.