Impact of Power on Financial Performance in Relations between Members of the Supply Chain of Building Industry

Relationship management in the supply chain has a significant impact on the operational competitiveness, performance and profitability of the companies and power is one of the important concepts that is considered in the relationships between members of a supply chain. The purpose of this study was to investigate the effect of power in supply chain members’ relationships on financial performance of building companies in Semnan. Trust, commitment and strategic performance are also used as mediator variables. The type of research is based on the objective, applied and its method is descriptive and correlational based on the data collection method. The research population is the managers of construction companies in Semnan city. For this purpose, 140 questionnaires were collected from this community. The research hypotheses were studied using structural equation modeling. The results indicate that non-coercive power has a direct and significant impact on trust and commitment in relations between members of the supply chain. If the coercive power has a reciprocal and significant effect on trust. The direct and significant effects of trust on commitment and financial performance and strategic performance have been confirmed. Commitment has a direct and significant effect on strategic performance and financial performance and The direct and significant impact of strategic performance on financial performance has also been confirmed.