A discussion of reward, coercive, expert, legitimate, and referent power bases was the initial focus of this research. A review of the power sources literature suggested that vertical integration within a channel of distribution was a crucial precursor to develop a structure to facilitate the use of power without creating a significant conflict among channel participants. Elements of transaction cost analysis (TCA) were offered as being suitable for determining the existing level of vertical integration among respondent firms. Accordingly, the purpose of this study was to develop a tentative model to determine proper use of power within varying levels of vertical integration.