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Article
Publication date: 11 June 2019

Sushant Kumar and Pradip H. Sadarangani

Power is an important construct in retailing and channel literature. Power is studied in improving the performance of the firm, but less emphasis is given on the behavioral…

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Abstract

Purpose

Power is an important construct in retailing and channel literature. Power is studied in improving the performance of the firm, but less emphasis is given on the behavioral changes that lead to an improvement in performance. The purpose of this paper is to focus on the relationship between sources of power and channel members’ trust, affective commitment, agent dependence and environmental munificence individually. Also, the paper examines the interrelationship among coercive, expert, referent, legitimate and reward sources of power.

Design/methodology/approach

The study uses a structured questionnaire to collect data from 214 channel members from an Indian oil company. The study uses a covariance-based structural equation modeling (SEM) approach for establishing the interrelationship among sources of power. Also, the study uses partial least squares SEM approach for determining the relationship between power sources and channel members’ behavior.

Findings

The study establishes that the dichotomous nature of power, i.e. coercive and non-coercive power source exists independently in an emerging country context. Further, coercive power sources are negatively and non-coercive power sources are positively associated with trust. Also, coercive and reward power sources are positively associated with agent dependence, whereas expert, referent and legitimate power sources are positively related to affective commitment. Finally, referent power is found to be positively associated with environmental munificence.

Practical implications

The paper offers several managerial implications. For practitioners, the paper highlights that application of coercive and non-coercive power sources can bring the desired change in channel members’ behavior. Also, acknowledging the power position between channel leader and channel member can foster more efficient association.

Originality/value

The paper contributes to the literature on channel management by enhancing the understanding of sources of power and their influence on the behavior of channel members. First, the study examines the relationship between channel members’ behavior of trust, affective commitment, agent dependence and environmental munificence and five sources of power. Second, the study establishes the interrelationship among sources of power. Finally, the paper outlines the implications for managers for effective use of sources of power in channel management.

Details

Journal of Business & Industrial Marketing, vol. 34 no. 5
Type: Research Article
ISSN: 0885-8624

Keywords

Available. Open Access. Open Access
Article
Publication date: 12 January 2024

Sarit Biswas, Sharad Nath Bhattacharya, Justin Y. Jin, Mousumi Bhattacharya and Pradip H. Sadarangani

This paper empirically investigates whether trade openness (TO) in Brazil, Russia, India, China and South Africa (BRICS) countries affects how banks might employ loan loss…

3163

Abstract

Purpose

This paper empirically investigates whether trade openness (TO) in Brazil, Russia, India, China and South Africa (BRICS) countries affects how banks might employ loan loss provisions (LLPs) to smooth out their earnings and how adopting the International Financial Reporting Standards (IFRS) can mitigate it.

Design/methodology/approach

The analysis includes 78 commercial banks from five BRICS nations and spans 2014 through 2020. To test these hypotheses, the authors utilized a fixed-effect and two-step system panel generalized methods of moments (GMM) estimator.

Findings

TO positively affects income smoothing (earnings management) across BRICS commercial banks. The effect is clearer in banks that make financial reports under the IFRS. Path analysis reveals that the effect of TO is driven by nonperforming loans (NPLs). Additionally, the IFRS restricts earnings management in the BRICS banking sector when a better institutional environment is present. The authors found that accounting rules (IFRS) and enforcement (better institutional settings) interact to enhance earnings’ quality.

Practical implications

The relationship between TO and bank earnings management practices is important for understanding the complex interplay between trade and finance and ensuring financial stability, investor confidence and regulatory compliance. This study recommends better regulations and governance mechanisms for financial reports in emerging nations like BRICS. Additionally, macro-prudential regulators and banking supervisors should work closely to ensure transparent TO decisions with improved discipline, institutional quality and regulatory support to enhance bank stability.

Originality/value

The study finds evidence of bank income smoothing in the BRICS and introduces TO as a determinant. It also identifies the evolving role of IFRS in the presence of higher institutional quality and TO, thereby expanding the financial reporting literature.

Details

China Accounting and Finance Review, vol. 26 no. 1
Type: Research Article
ISSN: 1029-807X

Keywords

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