Power-Dependence and Reseller Influence on SMEs' Continued Use of Online Direct Sales Channels: An Empirical Study

Abstract

A dual-channel model with a physical sales channel and an online direct sales channel (ODSC) frequently causes channel conflicts. Small- and medium-sized enterprises (SMEs) using such a model may be forced to suspend ODSC to ease conflicts and maintain traditional resellers. From a channel conflict perspective, this study investigates a few critical factors underlying SMEs' intention to continue with an existing ODSC. We develop a research model by integrating power-dependence theory and the technology acceptance model. Then we construct and administer a survey to a sample of US SMEs currently using the dual-channel model. Partial least squares regression is employed to analyze the data and evaluate the impact of four key factors on SMEs' continuance of ODSCs: perceived business value of ODSCs, perceived ease of continuance with ODSCs, reseller dependence, and reseller forceful actions. Findings of the study contribute to the understanding of supplier-reseller relationships and continued use of information technologies among SMEs.

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