How ICT shifts the power balance of tourism distribution channels

The restructuring process of the tourism sector and of the distribution channels caused by Information and Communications Technologies (ICT) may have altered the power positions in the channels. In the literature, the relationship between structure and power has been analyzed under the structure-conduct-performance paradigm, and the structure-conduct-outcome framework. The question is if the structure is antecedent or consequence of power balance in the channel. Our objective and contribution is to provide a common framework for both approaches by including the two different conceptualizations of the structure and analyzing their cause-effect link with the power balance. Moreover, we show that the two concepts of structure have a strong link with power balance but that the nature of the link might be very different: market structure is exogenous and might be considered an antecedent and, channel structure is endogenous, suggesting that it is intimately interrelated with power balance and that the cause-effect link works in the two directions.

[1]  Michael Etgar,et al.  Channel Domination and Countervailing Power in Distributive Channels , 1976 .

[2]  C. Laesser,et al.  Tourism in the new economy , 2001 .

[3]  Bart Nooteboom,et al.  Information technology, transaction costs and the decision to 'make or buy' , 1992 .

[4]  K. Cook,et al.  Power, Equity and Commitment in Exchange Networks , 1978 .

[5]  Jan Stentoft Arlbjørn,et al.  Lock-in situations in supply chains: A social exchange theoretic study of sourcing arrangements in buyer-supplier relationships , 2009 .

[6]  Luisa Andreu,et al.  B2B services: IT adoption in travel agency supply chains , 2008 .

[7]  Paul R. Messinger,et al.  Has Power Shifted in the Grocery Channel , 1995 .

[8]  Miyoung Jeong,et al.  Conceptualizing Web site quality and its consequences in the lodging industry , 2003 .

[9]  Dimitrios Buhalis.  Strategic use of information technologies in the tourism industry , 1998 .

[10]  Crispin Dale.  The UK tour-operating industry: A competitive analysis , 2000 .

[11]  Louis W. Stern,et al.  Power Measurement in the Distribution Channel , 1972 .

[12]  Gerhard Schwabe,et al.  Designing for reintermediation in the brick-and-mortar world: Towards the travel agency of the future , 2009, Electron. Mark..

[13]  R. Law,et al.  The impact of the Internet on travel agencies , 2004 .

[14]  Gary L. Frazier.  On the Measurement of Interfirm Power in Channels of Distribution , 1983 .

[15]  Alan Tse,et al.  Disintermediation of travel agents in the hotel industry , 2003, International Journal of Hospitality Management.

[16]  Hannes Werthner,et al.  Harmonise: A Step Toward an Interoperable E-Tourism Marketplace , 2005, Int. J. Electron. Commer..

[17]  Crispin Dale,et al.  The competitive networks of tourism e-mediaries: New strategies, new advantages , 2003 .

[18]  Dimitrios Buhalis,et al.  eAirlines: strategic and tactical use of ICTs in the airline industry , 2004, Inf. Manag..

[19]  Maris Goldmanis,et al.  E-Commerce and the Market Structure of Retail Industries , 2005 .

[20]  R. Law,et al.  Progress in information technology and tourism management: 20 years on and 10 years after the Internet - the state of eTourism research. , 2008 .

[21]  Pirkko Walden,et al.  Destination Maui? An Exploratory Assessment of the Efficacy of Self-Booking in Travel , 2000, Electron. Mark..

[22]  J. R. French,et al.  The bases of social power. , 1959 .

[23]  Toby E. Stuart,et al.  Network Effects in the Governance of Strategic Alliances , 2006 .

[24]  Leo Huang.  Building up a B2B e-commerce strategic alliance model under an uncertain environment for Taiwan's travel agencies , 2006 .

[25]  Rajiv M. Dewan,et al.  Product Customization and Price Competition on the Internet , 2003, Manag. Sci..

[26]  Auliana Poon,et al.  Tourism and information technologies. , 1988 .

[27]  A. Sánchez,et al.  Implications of the Internet—an analysis of the Aragonese hospitality industry, 2002 , 2004 .

[28]  Pradeep K. Chintagunta,et al.  Manufacturer-Retailer Channel Interactions and Implications for Channel Power: An Empirical Investigation of Pricing in a Local Market , 2000 .

[29]  A. Zellner.  An Efficient Method of Estimating Seemingly Unrelated Regressions and Tests for Aggregation Bias , 1962 .

[30]  Dimitrios Buhalis,et al.  Tourism and Information Technologies: Past, Present and Future , 2000 .

[31]  E. P. Michael.  Strategy and the Internet. , 2001 .

[32]  Nigel Evans,et al.  Collaborative strategy:: an analysis of the changing world of international airline alliances , 2001 .

[33]  J. Steenkamp,et al.  A Meta-Analysis of Satisfaction in Marketing Channel Relationships , 1999 .

[34]  Shohreh A. Kaynama,et al.  A Proposal to Assess the Service Quality of Online Travel Agencies: An Exploratory Study , 2000 .

[35]  Eonsoo Kim,et al.  The Applicability of Porter’s Generic Strategies in the Digital Age: Assumptions, Conjectures, and Suggestions , 2004 .

[36]  James W. Culliton,et al.  Make or Buy. , 1943 .

[37]  John O. Summers,et al.  Perceptions of Interfirm Power and its use within a Franchise Channel of Distribution , 1986 .

[38]  Linda D. Molm,et al.  STRUCTURE, ACTION, AND OUTCOMES: THE DYNAMICS OF POWER IN SOCIAL EXCHANGE* , 1990 .

[39]  R. Emerson.  Power-Dependence Relations , 1962, Power in Modern Societies.

[40]  Rajiv M. Dewan,et al.  Adoption of Internet-Based Product Customization and Pricing Strategies , 2000 .

[41]  F. Scherer,et al.  Industrial Market Structure and Economic Performance. , 1971 .

[42]  A. Poon.  Tourism, Technology and Competitive Strategies , 1993 .

[43]  Trevor Williams,et al.  Cooperation by design: structure and cooperation in interorganizational networks , 2005 .

[44]  J. F. Gaski.  The Theory of Power and Conflict in Channels of Distribution , 1984 .

[45]  H. Theil,et al.  Three-Stage Least Squares: Simultaneous Estimation of Simultaneous Equations , 1962 .

[46]  Caiwei Ma.  E-collaboration: A Universal Key to Solve Fierce Competition in Tourism Industry? , 2009 .