PENGARUH POWER ASYMMETRY DAN RELATIONSHIP MARKETING PADA KINERJA STRATEGIS PERUSAHAAN DALAM HUBUNGAN BISNIS ANTARA PEMASOK DAN PERITEL

This study analyzes power asymmetry and relationship marketing in Indonesia retail industry. The purpose of the study is to analyze the effect of power asymmetry and relationship marketing to supplier-retailer economic performance which involved in a business relationship. Power asymmetry concept and measurement based on the works of Kim (2000) and Maloni and Benton (2000). Relationship marketing concept in this study is the development of Trust and Commitment Theory proposed by Morgan and Hunt (1994). Unit analysis of this study is dyadic relationship of supplier and retailer. There are 204 dyads of supplier-retailer relationship analyzed in this study. We employ path analysis to test hypotheses and the result show that power asymmetry has negative significant effect to company trust to their partners. Company trust to their partners has a positive significant effect to supplier and retailer economic performance. Commitment also play role as mediating variable in this study. We conclude that power asymmetry in this study result an exploitative business relationship and gives larger economic profit for company with power domination. In this study, large and multinational supplier has power domination over their SME retailer. Policy implication of this study is that there should be a strong regulation enforcement to protect SME who suffers in business relationship exploitation