Power shifts and relationship quality improvement of producer–retailer green channel dyads under government intervention

Abstract This work presents an analytical model to investigate the effect of government intervention on green channel performance in a producer–retailer green channel dyad via the mediating effects of channel power shifts and relationship quality improvement. The retailer is allocated additional responsibility to collect used products for a producer for recycling and repairing. The proposed model is tested empirically using questionnaire survey data obtained from retailers of the producer–retailer green channels of consumer electronic products in Taiwan. Analytical results indicate that government intervention has positive effect on green channel performance when the producer adopts joint action measures. The producer can utilize joint action as a non-coercive influential strategy to alleviate a target member's countervailing power and bargaining power and to improve channel relationship quality, thereby enhancing green channel performance under government intervention to adopt extended producer responsibility.

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