The use of coercive influence strategies by dominant suppliers

This paper examines a range of coercive strategies used by dominant suppliers in both gas and electricity utility markets serving the Netherlands. The conditions are explored under which specific influence strategies are utilized. A dyadic-based interview approach generated several new insights. Contrary to prevailing views in the literature, our study indicates that dominant suppliers are not concerned about the negative effects of coercive strategies. We observe that dominant suppliers use a succession of influence strategies, which they consider effective in achieving compliance and cooperation from buyers. Dominant suppliers only recognize compliance or non-compliance of buyers to the use of coercive influence strategies, whereas buyers emphasize that they also show partial and delayed compliance. Recommendations for buyers and suppliers and suggestions for further research are provided.