Is knowledge power? The study asks this question in the context of EDI links between suppliers and wholesalers in grocery marketing channels. This paper starts with the view that EDI links favor the suppliers, because they obtain trading information and gain marketing flexibility more than the wholesalers do. Based on exploratory survey data from 33 grocery wholesalers, the paper confirms that EDI use may lower wholesalers’ perceived bargaining power. But it also shows that an appropriate level of incentives from suppliers tends to compensate for the power loss. This results in higher trust and cooperation in the trading relationships.
Nakayama, Makoto, "Use of EDI and Firm Bargaining Power Shift in Grocery Marketing Channels: An Exploratory Study" (1998). AMCIS 1998 Proceedings. 107.