Power in distribution channels — Supplier assortment strategy for balancing power

• Information asymmetry is an important power resource that can be used by suppliers to balance power
• Using information asymmetry to change the power balance affects the subsequent ability to use coercive power
• Actions intended to change the power balance in a relationship can lead to more collaborative relationships
• For practitioners, we highlight the possibility to identify information asymmetries and use them to increase relative power

This paper focuses on the move from buyer dominance toward interdependence between buyers and suppliers in a distribution channel. The paper introduces a case study collected through in-depth interviews and participative observations. It examines the relationships between a timber supplier and its customers in the builders' merchants sector. We stress the relevance of considering actions intended to change the power balance, rather than focusing only on trust. The power balance in a dyadic relationship is dynamic, and power positions need to be constantly re-evaluated. An important power resource is information asymmetry, manifested in the supplier's information about: products, regional and local demand, and the usage of the products. For practitioners, we highlight the possibility of exerting a non-coercive power resource, such as information asymmetry, in order to increase the relative power. Furthermore, being open about the power position between a buyer and a seller can foster a more efficient collaboration.