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Interest Domination as a Framework for Exploring Channel Changes in Transforming Economies

Changes in political and economic power can affect channel structures and decisions. Western channel models may not be useful for understanding the process of change in Central and East European transforming economies. This discussion suggests that channels in transforming economies may be controlled by groups or networks of people with mutual interests, a phenomenon the authors call interest domination. The article examines interest domination by managers, Communist cadres, and other party elite in two transforming economies and describes how structural and behavioral components of command economies might be conducive to interest domination of marketing channels. Propositions for explaining the political, social, and economic factors that sustain interest domination and contribute to change in interest-dominated channels are offered. Examples from Hungary and Tajikistan are used to provide context for the discussion.