Constructing virtual channel power model

Electronic commerce (E-commerce) is providing an alternative channel model for selling products. With the development of the E-commerce, enterprises have to face a new business model, and supply chain management (SCM) is the optimal solution to implement and integrate E-commerce and competitive advantage of outsourcing. In this day, who owns the channel can lead the entire market. Among the upstream and downstream there generally exists unequal channel power. We explored Taiwanʹs virtual channel clothing industry of the causal relationship of satisfaction of the channel members with channel power source and power. In order to explore their causal relationship, SEM oriented structural model path analysis is adopted. Therefore the channel distributors and the retailers can take and maintain mutually beneficial cooperative model, by such a power model so that the both sides are able to reap greater benefits.