Purchasing power |
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| Affiliation: | 1. Department of Accountancy and Information System, Villanova School of Business, Villanova University, Villanova, PA 19085, USA;2. Department of Finance, College of Business, Southern Illinois University, Carbondale, IL 62901, USA;3. Department of Accounting, Rauch Business Center, Lehigh University, Bethlehem, PA 18015, USA;4. Department of Accounting, Rauch Business Center, Lehigh University Bethlehem, PA 18015, USA |
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| Abstract: | The concept of power in commercial exchange relationships is defined in terms of changes in purchasing and product specifications. A distinction is drawn between actual and potential purchasing power. The relationship between the interdependent nature of buyer-supplier relations, the attractiveness and availability of the resources offered by both suppliers and buyers, and the factors affecting the ability of buyers to convert potential into actual power, are explored. |
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